Retail Giant Adapts to Changing Customer Behavior
- H&M plans to close around 250 stores next year due to increased online sales
- Sales decreased by 5% in September compared to last year
- 166 H&M stores remain closed, representing 3% of the total number of stores
- CEO Helena Helmersson says recovery is going better than expected and profit was returned in Q3
- Online sales show ‘strong growth’ during pandemic
- Investments to be increased in digital transformation
H&M is set to close around 250 stores next year as the company adapts to a shift in customer behavior towards online shopping. The retailer has seen sales decrease by 5% in September compared to the same period last year, with 166 stores still closed (3% of total). CEO Helena Helmersson says that recovery is better than expected and profit was returned in Q3 due to strong online growth during the pandemic. H&M plans to increase digital investments and accelerate store consolidation for a more integrated shopping experience.
Factuality Level: 8
Factuality Justification: The article provides accurate information about H&M’s plans to close stores and increase online investments due to changes in customer behavior. It also includes quotes from the CEO, Helena Helmersson, discussing the company’s performance during the pandemic and future strategies.
Noise Level: 3
Noise Justification: The article provides relevant information about H&M’s store closure plans and its shift towards online sales due to changes in customer behavior during the pandemic. It also includes quotes from the CEO discussing their recovery efforts and future strategies. However, it lacks detailed analysis or insights into long-term trends or consequences of these changes.
Financial Relevance: Yes
Financial Markets Impacted: H&M’s stock price and other retail stocks may be impacted by the announcement of store closures and increased online investments.
Financial Rating Justification: The article discusses H&M’s decision to close stores and increase its digital presence, which can affect its financial performance and the overall retail industry. This information is relevant for investors and can impact stock prices in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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