H&M to Reduce New Store Openings
Hennes & Mauritz (H&M) announced this week it will be rolling back store openings and instead focusing on targeting local-market sales growth online and offline. While the retailer's ambitious goal of growing 10 percent to 15 percent more storefronts will be slowing down, the company will not. The fast-paced environment has helped H&M grow to be one of the world’s largest retail chains. MarketWatch reports that H&M struggled the last quarter of the year in some traditionally strong markets, such as the U.S. and Europe, due to such an advanced pace.
Total Retail’s Take: H&M has always had an aggressive approach to storefront growth. Back in 2014, it was reported that the fast-fashion retailer's brick-and-mortar sales were outpacing its digital growth. And while e-commerce may be the future of retail, consumers still want a storefront experience. It's wise for H&M to focus on local market growth both in-store and online.