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!
Snatch Thief In Klang Robs Handbag From Woman With A Knife, Then Sets Stolen Escape Car On Fire
We are always told to be aware of our surroundings, especially when we are alone in sketchy places, as these...
2 Police Officers From Johor Detained For Extorting RM1,000 From Couple Caught In A Car
Although we may not want to believe it, those who are in charge of keeping us safe and taking care...
Police Officer Allegedly Smokes in SS15 Restaurant Despite No-Smoking Sign, PDRM Investigates
As the country transitioned into endemicity, most Malaysians are still keeping the pandemic SOPs in mind to curb the spread...
PDRM Denies Running A ‘Troll Farm’, To Investigate The Allegation By Meta
Yesterday, we reported on Meta Platforms Incorporated’s (Meta) revelation of the existence of a ‘Troll Farm’ on Facebook and Instagram...
Brazilian Man Performs Self-Rhinoplasty, Uses Animal Anesthesia & Superglue To ‘Stitch’ His Wound Up
According to Sin Chew Daily, a Brazilian man allegedly performed a nose job on himself after watching some YouTube videos....
Meta Allegedly Reports PDRM Of Running Hundreds Of “Troll Farm” FB & IG Accounts To Manipulate Public Discourse
Social media can be a dangerous tool especially since it has been proven to be able to manipulate and corrupt...
WATCH: Pedestrian Gets Into Accident with Rapid KL Bus; Dashcam Footage Shows What Happened
Do you remember what you were taught to do before crossing the road? Look left AND right. Sadly, this man...
Starting 2023, Online Purchases From Overseas Valued At RM500 & Below Will Be Taxed 10%
A sales tax on low value imported goods (LVG) purchased online will be implemented starting January 1, 2023. Based on...
Social Stories9 hours ago
M’sians Slam Local Newspaper For Calling Pandelela A Disappointment, She Explains Reasons Behind Defeat
Music16 hours ago
JUST IN: BLACKPINK Confirms Concert In Malaysia This March 2023!
Social Stories12 hours ago
M’sian Influencer Dies After Allegedly Being Cyberbullied – Politician Calls Out KKMM’s Lack Of Action
Social Stories13 hours ago
16yo M’sian Teen Helps Mom To Sell Kuih At The LRT Station On Weekdays