Well, it looks like everyone’s favourite fast fashion retailer might just find themselves in a spot of financial trouble. H&M, the popular Swedish clothing chain is now facing a very huge problem as they have tons of inventory left in their stores.
In the fashion retail world, this is a bad sign as stores try to match their inventory to their sales amount. According to the New York Times, H&M currently has about US$4.3 billion (RM16.6 billion) in excess of apparel and accessories that they desperately need to shift. Wow, that’s a lot!
In their latest quarterly report, H&M highlighted the decline in sales, which caused their stock to pile up and raised worries that the giant fashion retailer might not be able to keep up with their competition. This drop in sales has been unheard of for the past two decades as H&M had rapidly grew from one women’s apparel store in Stockholm to 4,700 stores internationally.
H&M is suffering the same fate as other fashion retailers as customers prefer to shop online or find lower prices elsewhere. Seeing as they are one of the world’s largest clothes manufacturer, they also produce a vast amount of clothes. In fact, Vasteras, a town where H&M launched their first store, depends partly on burning defective products from the fashion retailer to create energy.
However, Karl-Johan Persson, the company’s chief executive explained that the overstock was due to H&M opening 220 new stores and expanding its e-commerce operations. Yet, analysts are pessimistic about the company’s future as Rahul Sharma, founder of Neev Capital, called H&M “a slow-motion wreck”.
In response, H&M says that they will be branching out to a new brand called Afound. This brand will sell clothes from various brands including H&M at a discount plus adding three automated logistics centres this year to speed up deliveries.
It was also reported that to counter the decline in sales and overstock, H&M plans to slash prices and slow down on their physical store expansion. More sales, please! They want to increase their online sales by 25 per cent as well. Yet, Persson admits that the rapid changes in the industry has taken its toll on the company and said, “The start of the year has been tough.”
Time to have more sales, H&M!
JUST IN: Swimming Pools Are Now Allowed To Be Open For Water Sports Training
Minister of Defence, Dato’ Sri Ismail Sabri bin Yaakob has just announced in a live broadcast that swimming pools will...
JUST IN: Resorts World Genting Confirms That They Will Be Reopening Starting 19th June!
Guys, this is not a drill. Genting Highlands will officially be reopening by this weekend to the public after an extended closure due...
JUST IN: Setapak Barber Confirmed Positive For Covid-19, 40 Close Contact Cases Identified
In an update from the case of a barber in Setapak allegedly testing positive for Covid-19, our Health Director-General Dr...
JUST IN: Barber in Setapak Suspected To Be Positive For Covid-19 Only After 2 Days of Opening Barbershop
UPDATE: Health Director-General Dr Noor Hisham Abdullah has come forward to mention that the barber’s diagnosis has not been officially...
BREAKING: SPM & STPM Students Will Return To School By 24th June
In his latest live telecast to the Malaysian public, Education Minister Dr. Mohd Radzi bin Md Jidin has announced that...
Tired Of Comparing Prices On Different Websites? This ONE App Helps You Do That, Gives You Cashback & MORE
Nowadays, more and more Malaysians would prefer to do their shopping online rather than in physical stores. This is because...
Stronger, Faster & Smarter: Here’s Why M’sians Can’t Wait to Get the HUAWEI P40 Pro+ Dropping This Friday!
In case you didn’t know, we’re just a couple of days away from the launch of the HUAWEI P40 Pro+...
The New Normal Reveals 6 Things M’sians Do That Unknowingly Help Spread Germs & Bacteria Faster
Life has been a lot more different since the Movement Control Order (MCO) was implemented on 18 March 2020, almost...
- Features18 hours ago
72-Year-Old Malaysian Opens His Barber Shop For One Last Time After Operating Since 1990
- Society22 hours ago
Can’t Find A Job? JobStore’s Survey Reveals The Top 10 Most In-Demand Jobs After MCO
- Lifestyle21 hours ago
PHOTOS: This Might Be The Most Instagram-Worthy Starbucks Outlet In Malaysia!
- Culture17 hours ago
Under Armour Launches Sports Mask Designed To Wear While Exercising