Weak Sales Aren’t Deterring H&M From Expansion
Fast-fashion superstar H&M has watched its profits plummet 22% in the first six months of 2016, its weakest sales growth in three years, yet the firm says that won't stop it from continuing with a bold expansion.
The retailer plans to add 425 stores, from New Zealand to Cyprus, while expanding into 11 new e-commerce markets by the end of the year. H&M CEO Karl-Johan Persson says it’s been a tough six months for most fashion retailers, and the answer is to push forward into new markets, not hang back, RetailDive reports.
That’s not what most retailers think—the usual strategy in times of strife favors tempered expansion and strategic cutbacks. Gap is following that strategy, and recently announced it will close 75 Old Navy and Banana Republic stores in the face of declining sales. [RD]