H&M has announced that it plans to close 250 stores globally in 2021, reported BBC.

The retailer has 5,000 stores worldwide, thus, the closures make up 5 per cent of its stores. It is unclear if any of the closures will be in Singapore.

This announcement comes after the Covid-19 pandemic moved shoppers online.

According to CNN, H&M said in a statement that "more and more customers started shopping online during the pandemic" after as many as 80 per cent of its stores closed temporarily.

Growing online demand

BBC reported that H&M's pre-tax profits fell to 2.37bn Swedish krona (S$362 million) for the nine-month period up to Aug. 31. Its performance was better than what analysts had expected.

However, 166 of its stores globally remained closed, while many others faced limited opening hours.

H&M added that it has plans to increase digital investments to handle the growing online demand.

It has also made "rapid" changes to purchasing, investments, rents, staffing and financing to manage the impact of the Covid-19 pandemic.

Worst is over

H&M's CEO, Helena Helmersson also said in the release that though the fast-fashion retailer's challenges are far from over, "the worst is behind us and we are well placed to come out of the crisis stronger", reported BBC.

There are currently 10 H&M stores in Singapore.

H&M's outlet at Tampines Mall, which opened back in 2015, recently closed its doors.

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Top photo by Syahindah Ishak