H&M to close 170 stores in 2020
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Find out what H&M plans to do after the closure of its 170 stores.
Swedish fast-fashion company H&M is the latest fashion giant to take a hit during the COVID-19 pandemic, as they announce the closure of 170 stores this 2020.
Inside one of H&M's stores in the Philippines that has reopened during the GCQ | Source: hmphilippines (FB)
In their earnings release, H&M reported that they've suffered a net sales decrease of 24 percent in local currencies for the first half-year.
And during the second quarter (March 1 to May 31, 2020), their net sales decreased by 50 percent in local currencies, due to the temporary closure of about 80 percent of their stores in mid-April.
But, it's not all gloom and doom for the fashion brand as their online sales increased by 32 percent in local currencies.
Hence, for the rest of the year, H&M will ramp up the closure of 170 stores this year, so they can focus on the digitalization of their business.
“I am full of admiration for our employees' commitment, drive, and perseverance during this very challenging time.”
“As we have reopened our stores, sales have begun to recover at a faster rate than expected.”
“To meet the rapid changes in customer behaviour caused by Covid-19 we are accelerating our digital development, optimising the store portfolio and further integrating the channels.”
“With our ambitious sustainability work we want to continue to lead fashion retail towards a more sustainable future,” says H&M CEO Helena Helmersson.
H&M is not the only fashion empire that decided to shift its focus to digitalization. Inditex, the fashion empire that owns Zara, also plans to close up to 1,200 stores in Asia and Europe.LINK:
Indeed, COVID-19 pandemic has changed the world drastically and abruptly.
On the surface it may look like businesses are dying, but really, they're just taking on a new form; experiencing a rebirth.
And with the way things are going, it seems like the future of the fashion industry will heavily rely on e-commerce.
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And for updates on the Coronavirus Disease pandemic and the enhanced community quarantine, visit GMA's COVID-19 page and ECQ page.
Source:
https://hmgroup.com/content/dam/hmgroup/groupsite/documents/masterlanguage/cision/2020/06/2735858.pdf
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