The Swedish fashion company H&M has to close two stores in two German cities. © Michael Bihlmayer/imago/Symbolbild
Quite a few companies in the fashion industry are in crisis. H&M is also reacting for economic reasons. Two branches have to close.
Hanover/Cologne – The Swedish fashion retailer H&M is one of the most popular fashion brands. However, the crisis in the textile trade has also hit this company. More and more fashion retailers are struggling to survive: Peek & Cloppenburg, for example, sought rescue in protective shield proceedings due to sluggish business. Hennes & Mauritz (H&M) is also reacting – and closing more branches.
H&M closes more stores – two cities in Germany affected
Two cities in Germany are affected by the closures, as reported by the magazine Textil Wirtschaft. In detail, these are the following locations:
- the H&M branch at Schildergasse 24-30 in Cologne
- the H&M branch at Georgstraße 14 in Hanover
In Cologne, the branch will close its doors on 29 April. The branch in Hanover will continue to operate for a longer period of time, namely until 28 October. However, the Swedish fashion retailer is not completely disappearing from these two cities. Only the number of branches is shrinking. In Cologne and Hanover, other H&M stores will continue to offer the opportunity to shop.
The background to the closures of the two branches is economic reasons. This was announced by the company at the request of Textil Wirtschaft.
H&M: Fashion retailer faces store closures and job cuts
The number of H&M stores has declined in recent years. According to Textil Wirtschaft, a total of 38 stores were closed. As a result, a number of jobs were cut. In 2021, for example, the fashion retailer reacted in the face of booming online retail and the coronavirus pandemic. 800 jobs were to be cut.
It was only at the end of November that the company announced in a press release that it wanted to cut 1,500 jobs as part of its cost-cutting program. "The cost and efficiency programme we have initiated includes a review of our organisation and we are aware of the fact that colleagues will be affected," said Helena Helmersson, CEO of H&M.
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H&M is also suffering economically from the Ukraine war - and was able to start the 2023 financial year with growth
H&M suffered from high energy and purchasing costs, the company announced in January 2023. Russia's war of aggression on Ukraine and the resulting high inflation also play a role here. Last but not least, H&M, like other companies, withdrew from Russia – and thus left a previously profitable market.
In combination with investments and cost savings, there are very good conditions for 2023 to be a year of increasing sales and improved profitability, it said in January. And indeed, according to the first quarterly report, the clothing chain started the 2023 financial year with significant growth.