So, you might have heard that H&M, which is a famous clothing store, is closing some of its shops in the UK in 2023. But why is this happening? Let’s find out!
What is H&M?
H&M is a big company that makes clothes for men, women, teenagers, and kids. It started way back in 1947 in Sweden. Over the years, it became really popular and had lots of stores all over the world. In fact, it became the second-largest clothing store in the whole world!
Tell Me More About H&M
- Type: It’s a public company.
- Industry: They are in the retail business.
- Started: H&M began in 1947.
- Where They’re Found: You can find H&M stores all over the world.
- HQ: The company’s main office is in Stockholm, Sweden.
- Lots of Stores: At one point, they had 4,801 stores around the world.
- What They Sell: They sell clothes and accessories.
- Money Stuff: In 2019, they made $25.8 billion in revenue, had a net income of $1.5 billion, and had a total equity of $6.919 billion.
- Employees: They had about 107,375 employees in 2021.
- Websites: You can check them out at hm.com or hmgroup.com.
What Does H&M Stand For?
H&M stands for “Hennes and Mauritz.” It used to be called “Hennes” when it first started, but then it got its name changed when the owner, Erling Persson, bought a store called Mauritz Widforss, which sold men’s clothes.
Now, let’s get back to why some H&M stores are closing in 2023.
Is H&M Closing Its Stores in the UK in 2023?
Yes, it’s true. H&M is closing some of its stores in the UK in 2023, and this news might be disappointing if you love shopping there. The company says they have to do this because people are changing the way they shop, and it’s affecting their business.
Last year, in 2022, they already closed 240 stores because they weren’t making enough money. And this year, in 2023, they are still closing more stores.
How Many H&M Stores Are Closing in 2023?
H&M had a tough time last year, and they didn’t make much money. Because of this, they had to let go of 1,500 employees, and they closed around 336 stores all over the world.
But the store closings are not over yet. In 2023, they are continuing to close more stores in the UK. Some of the stores that are closing include Maidenhead, Berkshire, Newport, Isle of Wight, Hartlepool, County Durham, and Burton, Staffordshire.
With all these closures, it’s estimated that there will only be 194 H&M stores left in the United Kingdom by February 2, 2023.
So, that’s why some H&M stores are closing in 2023. It’s because they had a tough year in 2022, and they need to adapt to how people are shopping now.
Why Is H&M Closing Its Stores in 2023?
Hey there! You might be wondering why H&M, your favorite clothing store, is closing some of its shops in the UK this year. Well, let’s dive into the reasons behind it.
What H&M’s Representatives Say
First, let’s hear from the people at H&M. They’ve noticed that how people shop has been changing a lot in the past few years. They want to make sure they’re giving their customers the best shopping experience, whether it’s online or in their stores. To do this, they have to make some changes, and that means closing some of their stores.
H&M’s profits took a hit between September and November because of rising costs. Instead of passing those costs onto customers by raising prices a lot, they decided to find other ways to stay strong in the market.
Helena Helmersson, the CEO of H&M, said they used a strategy called “dynamic pricing” to deal with these challenges. In the first part of 2023, things might still be tough, and they might need to raise prices a bit, but they won’t make everything more expensive.
Helena also mentioned that even though 2022 was a rough year with things like wars and higher costs, their sales still went up by 6%. They faced challenges, like stopping sales in some countries because of conflicts, but they decided to focus on their business.
What Other Companies Say
Some other companies also talked about H&M’s store closures. A while ago, H&M closed a store on Walnut Street. At that time, they started looking for different kinds of tenants and started moving away from being just a clothing store to more food and entertainment stuff.
Other Stores Closing Too
It’s not just H&M; other favorite stores are also closing down in the UK. Brands like M&S, B&M, Clintons, Argos, Iceland, and Homesen are facing challenges because of poor sales, the COVID-19 pandemic, higher living costs, and more expensive energy.
Lots of Stores Closing in the UK
Last year, in 2022, nearly 17,145 stores shut down across the UK. That’s a lot! In 2021, it was 11,449 stores. So, it’s not just H&M; many stores are finding it tough.
H&M’s Biggest Competitor
H&M is the second-largest clothing store in the world, but its biggest competitor is GAP. GAP is a huge retailer that sells clothes and personal care stuff for women, men, and kids.
The Future of H&M
Even though H&M closed nearly 240 stores, it doesn’t mean the end for them. They’re actually opening around 95 new stores! They’re not just focusing on the UK; they have plans in other countries too. When the conflict started between Russia and Ukraine, H&M closed more than 100 stores in Russia. Russia is a big market, so this was a significant move.
So, to sum it up, H&M is making changes to stay strong in a changing world of shopping. They’ve closed some stores in the UK because of financial challenges and changes in how people shop. It’s not just H&M; many other stores are facing similar challenges. But don’t worry, H&M is still going strong, opening new stores, and making sure they provide a great shopping experience for all of us!