Retail giant H&M has announced it will close 240 stores across the world following a slowdown in sales. The company said it will open some 95 new stores and shut around 240 stores this year.
The retailer, which has more than 5,000 branches worldwide, said closures will "mainly be in established markets", with openings in "growth markets". The plans to close 250 stores were announced as part of its recovery strategy from the coronavirus pandemic.
After Russia invaded Ukraine, some 185 stores were shut in the country and online sales were also stopped. The retailer said Russia was its sixth-largest market, representing 4% of sales, the Mirror reports.
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Sales rose 6% in local currencies in March compared with 23% growth in the three months through February, but these were down 11% from two years earlier before the pandemic hit.
The Swedish chain said the closures were in response to more customers shopping online. In its financial update at the time, H&M Group - which also includes brands such as Monki and Cos - reported a 75% rise in net sales from April to June, compared with the same period in the year before.
The company said net sales were around £392million, while profit increased to £303million in the second quarter.
H&M chief executive Helena Helmersson said: "With the combination of much-appreciated collections, rapid adaptation and further improvements, our recovery is strong. Despite continued restrictions, sales increased significantly compared with the previous year.
"The third quarter has started well and we are almost back at the level we were at before the pandemic. Together with profitable online growth and continued store optimisation this will contribute to long-term, profitable and sustainable growth for the H&M group."
The store restructuring comes as retail giant Primark launched its first online website, allowing shoppers to automatically check stock in stores.
The website will use a traffic light system to do this. If an item has a green light, it is in stock. Orange means there are a few left, while red means it's sold out but will be returning. H&M has been contacted for comment.
