The Swedish fast-fashion retailer H&M is all set to close its 250 stores due to the coronavirus pandemic. With 5,000 stores worldwide, the retailer has decided to close down almost 5 percent of its store count.
The retailer announced that an increasing number of online shopping customers during the pandemic has resulted in temporary store closures. The retailer added that its third-quarter that encompasses sales from June to August, recovered as time went on because of store reopenings and strong and profitable growth in online shopping. Still, there was a 5 percent decline in September sales compared to the same month last year.
In a press release, Helena Helmersson, CEO, H&M said, “Although the challenges are far from over, we believe that the worst is behind us and we are well placed to come out of the crisis stronger.”
Apart from H&M, other fast-fashion retailers such as Zara have also indicated the closure of 1200 stores this year and next. American Eagle Outfitters and GameStop have also recently announced closures of hundred stores due to the rise of online shopping.