H&M to Close 200 Stores Worldwide, Including Two New York Locations
NEW YORK – Fashion retailer H&M is undertaking a notable restructuring plan that will see 200 stores closed by 2025, including two locations in New York City slated to shutter by January 2026. The closures come as the Swedish fashion giant reported stronger-than-expected profits driven by cost-cutting measures.
The move reflects a broader shift in consumer behavior adn economic uncertainty, impacting retailers globally. While H&M’s financial performance improved in the June-August quarter – reporting an operating profit of SEK 4.91 billion, up from SEK 3.51 billion the previous year - the company acknowledges customers remain ”cautious” with their spending. This restructuring aims to position H&M for long-term,enduring growth in a challenging economic climate.
So far this year, H&M has already closed 135 stores, primarily in asia, Oceania, and Africa, with an additional 21 closures in Europe. According to H&M’s CEO, Daniel Erver, the company is “taking further steps in the right direction,” emphasizing the importance of offering “products that are the perfect value for money.”
“Through a stronger customer offering, improved gross margin and good cost control, we have increased operating profit compared to the same quarter last year,” Erver stated. “The increase in profit shows that we are on the right track.”
The company maintains a commitment to its sustainability goals alongside this restructuring, believing its “strong corporate culture, combined with effective cost control and versatility” will allow it to navigate the evolving retail landscape.
