H&M to shutter 160 stores

H&M plans to permanently close about 160 stores in 2026 as the retailer cuts back on less productive locations. (hmgroup.com) The company disclosed the plan in its first-quarter 2026 report, which also said it expects to open around 80 new stores during the year. H&M’s sales in local currencies fell 1 percent in the quarter ended February 28, 2026, with about 4 percent fewer stores than a year earlier. (hmgroup.com, wwd.com) The same quarter showed a split picture: net sales were 49.6 billion Swedish kronor, down from 55.3 billion kronor, while operating profit rose 26 percent to 1.51 billion kronor. Chief executive Daniel Ervér said “good cost control and an improved gross margin” lifted profitability despite cautious consumer spending. (hmgroup.com) H&M has been shrinking its store base for more than a year, not just this spring. In late 2025, the group said it would close just over 200 stores during 2025, mainly in established markets, and many of those closures were tied to the wind-down of Monki’s physical stores. (msn.com, fashionnetwork.com) The store cuts track a broader shift inside apparel retail, where chains are pushing more sales online and concentrating physical shops in bigger, higher-traffic locations. H&M said the sales impact from its 2026 store optimization is expected to be “slightly positive” for the full year. (logos-pres.md, hmgroup.com) H&M is still adding stores in selected markets even as it closes more than it opens. Trade reports said the 2026 openings include new markets such as Paraguay and Malta, while the company also resumed online sales in Ukraine in the first quarter. (logos-pres.md, wwd.com) The company’s own reporting points to the pressure behind the move: cautious demand, currency swings and a retail network that is already smaller than a year ago. For 2026, H&M is betting that fewer stores, tighter inventory and lower costs will do more for earnings than a larger footprint. (hmgroup.com, forbes.com)