H&M (Stockholm) plans to open 100 new stores and close 160 locations this year, with the remaining stores focused on supplying a positive sales contribution, according to the retailer’s annual report.
The retailers is also investing in updates to its stores this year – with plans to refurbish 250, including at flagships in New York, London, Berlin and Stockholm.
H&M’s physical footprint peaked in 2021 with 5000 locations. It closed 250 stores that year. Since then, the retailer has been gradually scaling back the amount of stores – it closed 197 stores in 2023, though it opened 101 new locations that same year. H&M ended 2023 with 4369 stores worldwide.
H&M has emphasized that its goal is quality, in-store experience for customers rather than quantity of locations. “The physical stores continue to be incredibly important and in 2024 we are stepping up the pace of investment in the existing stores to further elevate the shopping experience,” Former H&M CEO Helena Helmersson said in its year-end report. “We are ensuring that we have the right store with the right format in the right place. Our stores, which are in prime locations, are a major asset where we meet our customers every day.”
Helmersson unexpectedly stepped down earlier this year. She was replaced by Daniel Erver, former brand chief for the retailer.