H&M closes Shanghai flagship
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H&M has closed one of its Shanghai flagship stores on the Nanjing West Road. The store, which was open for ten years, was considered a key part of the brand’s retail strategy as it was on a high-traffic shopping street.
According to a statement made to Chinese media, H&M closed this store due to the lease ending. H&M says they will continue to review locations as business develops in China.
Both Bloomberg and The New York Times have reported that landlords in China have forced the closure of H&M stores across the country after the controversy in late March regarding the company’s stance on using cotton sourced in China’s Xinjiang region. H&M products currently aren’t being sold on China’s top two e-commerce platforms, Tmall and JD.com.
It’s been a tough year for H&M. In addition to taking a hit last year due to the global COVID-19 pandemic, H&M also saw a 21 percent fall in sales for Q1 2021. The company is projected to close 250 stores this year.
Questions & Answers
Q.What reason did H&M give for closing its Shanghai flagship store?
What reason did H&M give for closing its Shanghai flagship store?
H&M stated to Chinese media that the store was closed because its lease had ended. The company also mentioned it will continue to review locations as its business develops within China.
Q.Are there other factors contributing to H&M store closures in China?
Are there other factors contributing to H&M store closures in China?
Bloomberg and The New York Times reported that some landlords in China have forced the closure of H&M stores. This reportedly follows a controversy in March over H&M's stance on Xinjiang cotton.
Q.How has H&M's overall business performed recently?
How has H&M's overall business performed recently?
H&M saw a 21 percent fall in sales for Q1 2021 and was also impacted by the global COVID-19 pandemic last year. The company is projected to close 250 stores this year.
Q.Are H&M products available online in China?
Are H&M products available online in China?
Currently, H&M products are not being sold on China's two largest e-commerce platforms, Tmall and JD.com. This indicates a significant disruption to their online retail presence.
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