The Swedish fashion distribution giant will reshape its stores following criticism from analysts, who questioned the current model of the group.
H&M remodels its network of stores. The Swedish fashion distribution company, second in the world by revenue, has drawn up a new strategy that goes through transforming its stores into logistics hubs.
The objective of the group is that the concerned points of sale, which will continue to operate in a traditional way, serve will equally serve as an online order distribution center. H&M thus responds to criticism from investors, who questioned the current model of the group.
“We believe that the role of stores should change,” said Karl-Johan Persson, president of the Swedish company after the presentation of the results. “It is one of the things that will be super exciting to understand going forward: how we see stores today with digital growth moving faster,” said Helena Helmersson, CEO of the company.
The Swedish group follows in the footsteps of other companies of its rivals who have emphasized on internet sales. H&M will open the fewest stores in decades, according to the Financial Times. The group ended 2019 (concluded on November 30) with a revenue increase of 10.6%, the highest in four years, and a net profit increase of 6.3%, the first since 2015.