H&M announced that they will open fewer stores this year because the group intends to concentrate investment on its online operations.
Karl-Johan Persson, Fashion retailer H&M CEO, said “we are continuing to integrate their physical and digital channels to make shopping experience easy and convenient for their customers. This and other extensive investments are driving costs in the short term. Our new online platform and our new logistics systems have not yet achieved full efficiency, but for customers have resulted in improvements such as faster and more flexible deliveries and a more seamless shopping experience.”
Their online sales posted an increase of 27% during the first half in SEK and 20 per cent in local currencies. This is the reason why chunk of its investment will be concentrated on online. From the previously announced target of 175 stores, the company will only open a net of 130 stores worldwide. The transformation definitely is having an effect and will continue at a fast pace within their strategic focus areas.
The continued increase in full-price sales, reduce markdowns and increase market share is a clear sign that customers appreciate their collections and the improvements they are making to the product assortment and the customer experience.
Persson added, “Sales developed well in most markets. We had the strongest growth in countries such as the US where we grew sales by 17 per cent, in Mexico by 25 per cent, in India by 39 per cent, in Russia by 19 per cent and in Poland by 11 per cent in local currencies. We also grew in the UK and Sweden where we took market share despite challenging market conditions.”
H&M group shared that they gained almost an 11% increase in net sales in the first half to SEK108.5 billion and a net profit of SEK5.37 billion, down from last year’s SEK6.01 billion.
Part of their strategic transformation is to expand their partnership with global payments provider Klarna to enable frictionless checkout across all its channels and elevate the shopping experience of its customers. Frictionless shopping experience is expected to go live with H&M in the United Kingdom, the US, Sweden, the Netherlands, Austria, Finland, Denmark and Switzerland this year. Six other countries will be added by 2020.
They will further integrate H&M’s digital and physical stores to give customers a seamless, personalised and engaging shopping experience no matter where, when and how they shop.
Source: Inside Retail
Domino’s Pizza to trial cashless ‘tap-and-take only’ stores Posted on: 26-07-2019
Domino is starting with a trial to use only electronic payment options at a handful of stores across the country, in line with their plan to ditch the use of cash in its stores.Read More
Zip gains retailers as buy now pay later comes under attack Posted on: 15-07-2019
A string of new retailers join Buy now, pay later operator Zip, bringing representatives across Australia fashion, automotive and food into the fold.Read More
Instagram boss lays out plan for in-app shopping bags, checkout Posted on: 11-07-2019
Instagram’s desire to play a bigger role in consumers’ online shopping behaviour, has been put permanently to rest.Read More
Coles surrenders resistance to the forces of the digital era Posted on: 03-07-2019
Coles 3.0 and Woolworths 3.0, Australia's two supermarket giants are quietly but aggressively changing the way they do business. The rules of competitive engagement have shifted as the game has moved on.Read More
Bunnings to have full e-commerce offer by Christmas Posted on: 28-06-2019
Before Christmas, Bunnings is expected to have its e-commerce operations online and fully operational nationwide.Read More
Inside the Toys ‘R’ Us rebirth: Why we decided to launch as a purely online retailer Posted on: 25-06-2019
In 2011, Louis Mittoni, the new chief executive officer of Toys ‘R’ Us ANZ, launched the Hobby Warehouse as a digital platform.Read More