1️⃣ Store Strategy Shift
H&M Group's latest report unveils plans to open 100 new stores and close 160 in 2024, aiming for a net reduction but enhancing sales through the remaining stores. This approach contrasts sharply with their previous strategy of rapid closures and e-commerce prioritization, indicating a renewed belief in the value of physical stores. The refurbishment of 250 stores globally, including major cities like New York, London, Berlin, and Stockholm, is set to invigorate the shopping experience.
2️⃣ A Turn from the Past
Reflecting on H&M Group's recent history, the fast-fashion giant is pivoting from its earlier global expansion and store closure strategy. With a notable reduction in store numbers from over 5,000 to 4,369 by the end of 2023, the focus is shifting towards investing in the quality of the shopping experience in existing stores. Helena Helmersson's (former CEO) emphasis on the importance of physical stores for customer engagement and sustainability highlights this strategic pivot.
3️⃣ Sustainability and Technology
The drive towards sustainability and enhanced customer service is evident in H&M's operational strategies. The adoption of RFID technology for accurate inventory management and the provision of repair services showcase a commitment to sustainability. With 91% of H&M stores equipped with LED lighting, the company underscores its commitment to environmentally friendly practices and the role of physical stores in supporting online sales and returns.
4️⃣ Expanding Footprint
Despite closures in established markets, H&M Group is not slowing down its global reach. With plans to open its first store in Brazil by 2025 and a current presence in 77 markets, H&M continues to eye growth opportunities. The launch of Singular Society, a membership-based brand with a flagship store in Stockholm, alongside the strategic closure of stores in Russia and gradual reopening in Ukraine, reflects a nuanced approach to market dynamics and opportunities.
Will H&M's store refurbishment boost sales?
