H&M to close 250 stores as it accelerates digital investment

Sweden's H&M, the world's second-biggest fashion retailer, plans to cut 250 of its stores 5,000 stores beginning next year as it accelerates plans to increase digital investment.

The Stockholm-based firm said it would also rapidly and decisively take action in managing the impact of the pandemic, including changes to investments, rents, staffing, purchasing, and financing.

The closures were in response to the Covid-19 pandemic driving shoppers to transact online.

H&M said sales continued to recover in September, although still 5 percent lower than the same month in 2019.

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

The company's pre-tax profits fell to £210m for the nine months to 31 August.

H&M noted that 166 of its stores remained closed, and a large number had to deal with local restrictions and limited operating hours.