Friday, February 23, 2024

H&M closes one in five Spanish stores – RetailDetail EU

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Swedish fashion chain H&M is planning to close almost a quarter of its Spanish shops and lay off one in seven employees in the country. The retailer wants to cut costs and focuses on larger shops that can also handle online orders.

Global cost-cutting plan

H&M is taking severe measures to cut costs in Spain: 28 of 133 shops will disappear, as will 588 of 4,000 jobs. Speaking to unions, the retailer said the decision was motivated by “organisational, productive and economic reasons”, Reuters news agency reported. The restructuring operation is part of a larger cost-cutting plan that H&M already announced at the end of 2022: the company is cutting 1,500 jobs worldwide.

Like many other retailers, the Swedish fashion chain is reviewing its store network: smaller shops are closed, shifting focus to larger flagship shops that offer shoppers more service and experience, while also serving as e-commerce hubs for shipping, pick-up and returns of online orders. In Spain, the rivalry with Zara’s parent company, Inditex, only exacerbates things. The unions are also protesting against the drastic restructuring measures, which they say go too far: they are calling for solutions that avoid job losses.

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Swedish fashion chain H&M is planning to close almost a quarter of its Spanish shops and lay off one in seven employees in the country. The retailer wants to cut costs and focuses on larger shops that can also handle online orders.

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