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The world’s second-largest fashion retailer, Sweden’s H&M, is scheduled to close 250 stores across its global network, but has declined to say whether any of its New Zealand stores face the cut.
H&M said the closings were necessary as shoppers increasingly shopped online.
In August, the company had 5,043 stores in 74 countries, with online shopping in 51 countries.
Spokeswoman Lauren Ormaechea said she had no information related to the New Zealand stores.
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“Our physical stores are still incredibly important and we want to make sure we have the right stores in the right locations,” Ormaechea said.
H&M has 11 stores in New Zealand, with a new store opening on October 15 in Auckland’s Sylvia Park shopping center.
H&M CEO Helena Helmersson told investors Oct. 1 that the decision to close stores was driven by an increase in online shopping during the global pandemic.
“More and more customers started shopping online during the pandemic and are making it clear that they value a convenient and inspiring experience where the online store and site interact and strengthen each other,” he said.
“We are increasing digital investments, accelerating store consolidation and making channels more integrated.”
H & M’s New Zealand sales for the three months to August 31 were $ 19.7 million, a 16% increase over the same period last year.
Simon O’Connor / Stuff
First Retail CEO Chris Wilkinson says H&M will likely close its older small stores abroad rather than its modern New Zealand stores.
But H&M reported a global loss of 1.24 million SEK during the nine months ended Aug. 31, reflecting the closure of 80 percent of its store network during the global pandemic.
First Retail Group CEO Chris Wilkinson said H&M was unlikely to close its New Zealand stores.
“H&M has a lot of stores around the world that don’t reflect its newer stores. So some of the stores that can close in the UK are women’s only stores or men’s only stores. For them, there will be a lot of legacy formats that they will look to get rid of. “
Older, smaller-format stores no longer fit the way the fashion company wants to do business, he said.
Sean Gallup / Getty Images
H&M has announced that 250 stores across its global network will close as shoppers flock.
“In New Zealand, it is a new business with the new model. All the stores we have here are large format stores that anchor the centers where they are ”.
H&M had been quite strategic in its New Zealand store locations, with limited overlap, Wilkinson said.
“The stores they are in will have leasing obligations that make it very difficult for them to get out of those places.
While abroad some of those stores will have been there for 10 years, and they will be able to renegotiate and get out of those leases quite easily.
