H&M to close stores and expand on Tmall

1 min readUpdated May 19, 2025Jan 4, 20188:10 AM

In this article (5)

It is normal practice to use Tmall to test the Chinese market. Is H&M tinking of using Tmall to replace its physical stores?

As inventories rose and sales tanked in the fourth quarter, H&M announced it is picking up the pace on a transformation plan.

Q4 sales fell 4% to $5.97 billion from the same period a year ago and foot traffic to stores declined, according to a company press release.

CEO Karl-Johan Persson said the company would scale back its physical expansion and close some stores, but its collaboration with Alibaba is expanding.

H&M and H&M Home brands will begin selling on Tmall and the company is in “far advanced discussions” to sell the rest of H&M’s brands through the Chinese e-commerce marketplace, according to another press release.

Also last week, H&M rival Inditex reported a net sales rise of 10% to €17.96 billion ($21 billion) in the first nine months of fiscal 2017.

The Spanish apparel company, owner of Zara, also announced the rollout of same-day delivery, automated in-store pick-up points for online orders and next-day delivery in six markets, including in Spain, France, the U.K. and China.

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What this means

H&M's pivot towards Tmall and store closures in Asia is a necessary, albeit risky, move to address declining physical foot traffic and rising inventories. This digital focus directly challenges Inditex's aggressive omnichannel strategy, which has already seen significant sales growth and sophisticated delivery options in China. By expanding on Tmall, H&M is following Alo Yoga's successful entry, but without the benefit of a clean market start, as its existing store network is being culled. The risk lies in alienating existing physical store customers without fully capturing the online market, especially against nimble competitors. The desk judges this is a crucial adaptation, though success hinges on smooth execution and rapid brand integration. Watch for the announcement of all H&M brands selling on Tmall.

Minjun Park · Retail News Asia newsroom

Questions & Answers

Is H&M planning to entirely replace its physical stores in China with its Tmall presence?

The article asks if H&M is thinking of using Tmall to replace its physical stores, but does not provide a direct answer. It states H&M will scale back physical expansion and close some stores, while expanding its Tmall collaboration.

How did H&M's sales perform in the fourth quarter compared to the previous year?

H&M's sales in the fourth quarter fell by 4% to $5.97 billion, compared to the same period a year ago. Foot traffic to their stores also declined during this time.

Which H&M brands are currently confirmed to be selling on Tmall?

The H&M and H&M Home brands are confirmed to begin selling on Tmall. The company is in advanced discussions to also sell the rest of H&M's brands through the Chinese e-commerce marketplace.

What measures is Inditex, H&M's rival, implementing to improve its customer service?

Inditex is rolling out same-day delivery, automated in-store pick-up points for online orders, and next-day delivery. These services are being introduced in six markets, including Spain, France, the U.K., and China.

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