Swedish fashion retailer H&M ran into problems in the British market. The company was forced to close one in five stores in the country to cut costs.
Over the past three years, 56 stores operated by H&M have closed in the U.K. Today, 192 monostores remain in the chain. The closures are part of the group’s global cost-cutting strategy.
Experts say the retailer is being forced to downsize amid a continued exodus of customers from malls and physical stores. Retail traffic has still not recovered to pre-crisis levels after the pandemic.
H&M, like other major fashion brands, prefers to invest in developing online sales channels. Given the retailer’s relatively weak financial performance, the company has been forced to cut store service costs.
Earlier H&M also announced plans to renovate its flagship store on Regent Street in London. The new format will open a clothing rental bureau in the retail space, including dresses and costumes for the holidays, as well as a beauty salon. Prices for clothing rentals will range from £13 to £50.
