Fashion retailer H&M has announced that it will close 170 stores in 2020 while it plans on opening another 130 locations. The company said the number of stores to be closed was increased from previous estimates while the number of new store openings was reduced, resulting in a net decrease of about 40 stores throughout its portfolio.While H&M did not disclose which locations would be closing, it did announce the news alongside its six-month earnings report, where it saw a 23% net decrease in sales for the first half of the year and a 50% decrease in sales for the second quarter.
Sales declined as H&M was forced to temporarily close its stores because of the coronavirus. The company said that its business was “significantly negatively affected by the Covid-19 situation, particularly in the second quarter.”
The company has since refocused its efforts on e-commerce sales as it continues to reopen stores. H&M said that about 350 stores still remain closed, and many that are have reopened are operating under local restrictions and reduced hours.
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