H&M is planning to close 240 stores in 2022

 

H&M is planning to close 240 stores in 2022

H&M continues its austerity program: Because fashion retail is weakening, the chain plans to close many stores this year. German cities are also expected to be affected.

H&M plans to close 240 branches worldwide this year.

H&M plans to expand around 120 stores at the same time. However, the company will focus on expanding in countries considered growth markets, among them Ecuador, North Macedonia, and Kosovo.

The company has consistently reported that individual branches are not profitable and are therefore being closed since the Corona pandemic and the lockdowns that resulted. One reason for this is the booming online business.

H&M closed 321 stores in 2021

H&M closed 321 stores during the last financial year and opened 187 new ones simultaneously. 

H&M had 4,242 branches around the world at the end of the financial year, including 16 fewer for Cos and 25 fewer for Monki.

This is a significant improvement in profitability in the overall H&M business. One of the main reasons may not be mentioned directly: H&M is currently pursuing an austerity course that aims to reduce retail rents because of the Corona crisis.

The last resort is always business closure

Upon request by t-online, H&M did not specify how many of its branches in Germany are affected by the plans for this year, nor did it explain the decision about locations in individual cities. A spokesperson had only this to say on the request: "The decision to close is being finalized.".