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At the same time, the clothing chain will close 250 stores.
Published:,
The clothing chain plans to close 350 stores worldwide next year, while opening 100 new ones. This means that the company closes 250 net stores.
The chain has 5,000 stores around the world. The Norwegian business is affected by the cuts.
– In order to offer good and inspiring shopping experiences, meet new customer expectations, be relevant and continue to succeed in a rapidly changing market, we continually evaluate the portfolio of physical stores and digital channels. This can lead to new openings, relocations, rebuilds or consolidations, writes communications consultant Thea Kjendlie at H&M in an email to E24.
Kjendlie writes that the H&M Group has opened three new stores in Norway in 2020. These are & Other Stories and H&M Home in Valkyrien in Oslo, as well as H&M Home in Trondheim.
– During 2020, H&M Group has consolidated and plans to close four H&M stores in Norway; H&M Kristiansand (purchases from Slottet), H&M Stortorvet Oslo, H&M Hamar (Maxi center) and H&M Arkaden in Skien.
H&M also announced the consolidation and closure of H&M Fornebu in 2021, according to Kjendlie.
Beyond that, it’s too early to say anything more about 2021.
Millionbot for privacy events
H&M is among the companies that closed their stores in the face of the virus crisis, but during the third quarter it has begun to return to normal. The company’s most recent quarterly report shows a sharp drop in earnings compared to the previous year, but above analysts’ expectations.
The group’s earnings before tax reached 2.26 billion SEK in the third quarter. That’s down from 5.01 billion last year, but above Infront’s estimate of 2.03 billion.
At the same time, operating profit fell to SEK 2.7 billion, from SEK 5.02 billion last year.
The drop in profit comes after a decrease in turnover to NOK 50.87 billion in the quarter, from NOK 62.57 billion last year. At the same time, it is above the estimate of 50.87 billion.
At the same time, a penalty fee of € 35 million (SEK 367 million) contributed to increasing selling expenses in the quarter.
Hamburg has collected the H&M tax after a violation of privacy rules at a service center in Nuremberg. Last fall, it emerged that the company was collecting personal information about its employees.
The targeted surveillance was carried out on employees of a store in the Bavarian city of Nuremberg, according to a statement from local authorities.
Among the 126 H & M Group stores in Norway, turnover amounted to SEK 1.42 billion. That’s slightly less than the 1.46 billion for the same period last year.
In addition to the H&M stores, the H&M group also owns the Weekday, Cos, Monki, & Otherstories, Arket and Afound brands.
Read the full company report here
