16 December 2021, Mumbai:
For the fourth quarter H&M’s sales increased 11 per cent. At the end of the quarter around 115 stores were temporarily closed due to restrictions (mostly in Austria and Slovakia), which was actually more than at the start of the three-month period when 100 stores were closed (mainly in Southeast Asia). For the financial year as a whole, net sales increased 12 percent.
Fashion retailers have been working hard just to get back to where they were two years ago and the achievement of that goal is impressive given that ongoing restrictions and consumer caution are still issues they have to deal with globally.
H&M has been on a mission to turn around its business by reducing dependence on marked-down inventory and investing more in e-commerce. Mobile is especially important, as H&M’s target market of under 25 are heavy mobile users.
H&M only started selling online in 2010. Apparently, the retailer was slow to see the opportunity that e-commerce presented, or else thought that its store network was enough to see off online competition.
Over the last ten to fifteen years H&M and other fast-fashion brands have enjoyed great success in the fashion sector thanks to trend-led products, a speedy production process, and large store networks.
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