Hennes & Mauritz, the popular fast-fashion brand known as H&M has announced plans to close a record number of shops and invest more in online growth.
The Swedish fast-fashion retailer said on Thursday that it would close about 250 of its 5,000 stores next year, as about a quarter of its shops would be able to renegotiate or exit leases in 2021.
“The recovery is going better and faster than we expected. That we could turn to profit this quarter is encouraging to see . . . We are coming out of this crisis stronger,” said Helena Helmersson, who has taken on the mantel of chief executive in January.
Much like Inditex, the parent company of Zara, H&M has been restructuring its business in recent years and Ms Helmersson is using Covid-19 to speed up the changes.
Ms Helmersson highlighted three areas where H&M was accelerating its transformation: the speed and flexibility in its own supply chain; integration of its physical stores and digital offering; its focus on sustainability while still promising “value-for-money” clothes.
“I am confident that we will come out stronger, but I want to be humble that we are still in crisis,” she said, adding that H&M was “more prepared and more resilient” for a second wave of coronavirus.