Coronavirus: H&M to close 250 stores worldwide

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Reuters

The world’s second biggest fashion retailer, Sweden’s H&M, says it plans to cut 250 of its stores globally.

The closures will come next year after the firm said the Covid-19 pandemic had moved more shoppers online.

Although it said sales had continued to recover in September, they were still 5% lower than the same month in 2019.

While its pre-tax profits fell to 2.37bn Swedish krona (£210m) for the nine months to 31 August, this was better than analysts had expected.

H&M has the contractual right to renegotiate or end leases on about a quarter of its stores every year.

The retailer said that it planned a “net decrease of around 250 stores” next year.