H&M to โClose 200 โคStores Worldwide, Including Two New York Locations
NEW YORK – Fashionโค retailer H&M is undertaking a โnotable restructuringโฃ plan that will see 200 โstores closed by โฃ2025, includingโข two โlocations inโฃ New York Cityโข slated to shutter by โขJanuaryโ 2026. The closures come as โthe 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 โขretailers globally. While H&M’s financial performance improved โin โtheโฃ June-August quarter – reporting an operating profit of SEK 4.91 billion, up from SEK 3.51 billion the โฃprevious year โค- the โcompany acknowledges customers remain โค”cautious” with their spending. This restructuring aimsโค to position H&M for long-term,enduring growth in a challenging economic climate.
So far โthis year, H&M has already closed 135 stores, primarilyโฃ in asia,โ Oceania, โandโ Africa, with anโ additional 21โ closures in Europe. Accordingโ to H&M’s โฃCEO, Daniel Erver, the company is “taking โขfurther steps in โขthe right direction,” emphasizing the importance of offering “products that โare the perfect value for money.”
“Through a stronger customer offering, โฃimproved gross โขmargin and good โcost โคcontrol,โ we have increased โฃoperating profit compared โto the same quarter last โขyear,” Erver โstated. “The increase in profit shows that we โare on the right track.”
The company maintains a commitment to its โขsustainability goals alongside this restructuring, believing its “strong corporate culture, combined withโ effective cost โคcontrol and versatility” will allow โคit to navigate the evolving retail โฃlandscape.