The latest retail store to be hit by the pandemic and the
rise in online shopping is H&M.
The firm has just announced that it is going to close 250 outlets across the
world. The reason stated is the shift in consumer behaviour towards e-buying facilities.
Currently, the company has 5000 brick and mortars globally
and it has not revealed yet how many UK shops will be closed. The fashion firm advanced
that it is too early to give details since the numbers are going to vary across
different countries. Nonetheless the decision is clear since despite the fact
that they were starting to recover, sales were still 5% lower in comparison to
the same month in 2019. Additionally, 166 of its outlets in several parts of
the world are closed to the public and another large number still has
restrictions with regards to local regulations and decreased opening hours.
Every year, H&M
has the contractual right to renegotiate or end leases on approximately 25% of
its stores. According to the analyst Richard Lim of Retail Economic, “What
we have seen generally over the past few months of the pandemic has been a step
change in the number of sales going online. That has affected all parts of the
industry, but particularly clothing and footwear”.
H&M has not revealed which shops will close © Royalty-free image
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