The Swedish chain H&M is less associated with online activities and more with classic stores in shopping malls. This, however, is about to change. The company is to close as many as 250 of its stores in 2021. And focus more on e-commerce.
H&M is a real clothing giant. It has over 5,000 in the world. stores, and annual sales revenues exceed $ 21 billion. Only Inditex (owner of Zara) and the Japanese company Uniqlo chase the Swedes away.
Some experts, however, pointed out that the Swedish company is becoming a bit of a giant on clay legs. Because it copes with the transformation to the era on average e-commerce. And the pandemic has led people to increasingly shift to e-shopping. Effect? In September 2020, H&M revenues were 5 percent. lower than in September 2019.
The Swedes, however, want to make up for lost time and plan to expand in the e-shopping sector. However, it will not happen without victims.
The company has just announced that it will close as many as 250 of its brick-and-mortar stores next year – although it is not yet known which locations are to fall under the hammer.
H&M on the Internet. But what is this expansion?
Just as the Swedes are not yet talking about the details of cuts in traditional trade, so little is known about the planned expansion. However, it is worth remembering that also last year quite a lot of stores with the H&M logo were closed – 166 to be exact, 50 of which in Europe.
Maybe it is more about savings, and not about the implementation of some bold e-commerce projects? Probably soon we will find out if H&M on the Internet will become stronger than it is today. So far the company has tried to attract millennials, but rather in other ways – for example, the ability to pay for purchases after two weeks.
It is impossible not to notice, however, that the giants of the “old trade” in clothing, and not only about H&M, they are not coping very well with the new competition. At least with the industry Zalando, but also with e-commerce companies where you can buy everything, including clothes – such as Amazon or Aliexpress.
So maybe the H&M authorities could use consultations in… Poland? This is, of course, a much smaller scale, but, for example, the e-commerce transformation of the CCC Group is quite good, thanks to quite innovative projects such as eObuwie or eSize.me. I only wonder if the Swedes will want to take advantage of the Polish experience.
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