H&M is closing 250 stores which is 5% of its total store count in year 2021 because of the Covid-19 pandemic, as people increasingly shop online.
However, it’s not known which stores will be closed yet.
“More and more customers started shopping online during the pandemic,” following temporary store closures that, at its peak, totaled about 80% of its store count, H&M said in a statement Thursday.
According to CBS, The Swedish retailer with 5,000 stores worldwide said its third quarter, which encompasses sales from June to August, recovered as time went on because of store reopenings and “strong and profitable” growth in online shopping. Still, September sales declined 5% compared to the same month last year.
“Although the challenges are far from over, we believe that the worst is behind us and we are well placed to come out of the crisis stronger,” CEO Helena Helmersson said in release.
Beside H&M, it’s rival Inditex, which owns Zara and other fast-fashion brands, said earlier this year it plans to close as many as 1,200 stores this year and next.
H&M and Inditex aren’t the only retailers feeling the pinch. Other retailers also recently announced plans to close hundreds of stores because of the rise of online shopping.