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H&M to shut high-profile Singapore store

By Rajiv Menon
1 min read
HM Store Opening
HM Store Opening
In this article (5)

 H&M’ s two-storey Ion Orchard outlet is closing in March, after a run of more than a decade.

Opened in 2012, the store’s last day of operations is on March 12, according to a Facebook post by the Swedish fast-fashion brand on Feb

The post added: “But don’t worry. We’ll meet in other places.” The retailer, which currently has nine outlets in Singapore, shuttered two outlets in recent years.

H&M’s Tampines Mall outlet was shut in August 2020, while its Waterway Point outlet in Punggol closed in January 2021.

The Straits Times has contacted H&M for comment.

H&M entered the Republic in 2011 with a flagship store at Somerset.

The world’s No. 2 fashion retailer – behind Inditex, which owns Zara – has had a spate of closures in Europe, spurred by factors such as the Ukraine-Russia conflict and high inflation.

According to media reports, one in five of its Britain-based stores had closed in the past few years, with four more stores earmarked to close this year citing “a rapid change in customer behaviour”.

In October 2020, the retailer said it planned to cut 250 of its stores globally. As at Nov 30, 2022, it had 4,465 outlets worldwide.

Luxury brands have weathered factors such as the Ukraine-Russia conflict far better than their high-street counterparts.

While H&M saw its net profit fall 68 per cent from 2021 to 3.6 billion Swedish kronor (S$450 million), French multinational LVMH – which owns brands including Tiffany & Co, Christian Dior and Sephora – had a record year in 2022, raking in a 23 per cent jump to hit €79.2 billion (S$112.9 billion) in 2022.

Questions & Answers

Q.

What reason did H&M give for the closure of its Ion Orchard store?

A.

The article does not state a specific reason for the Ion Orchard closure, only that it is happening after more than a decade. H&M's Facebook post merely added, "But don’t worry. We’ll meet in other places."

Q.

How many H&M stores will remain open in Singapore after the Ion Orchard closure?

A.

H&M currently operates nine outlets in Singapore. Following the closure of the Ion Orchard store, the retailer will have eight remaining outlets in the country.

Q.

Has H&M been closing other stores globally, or is this just a localised trend?

A.

Globally, H&M had planned to cut 250 stores in October 2020. The company has also had a spate of closures in Europe, with one in five UK stores closing in recent years.

Q.

How did H&M's financial performance compare to luxury brands in 2022?

A.

H&M saw its net profit fall 68 per cent from 2021. In contrast, French multinational LVMH, which owns several luxury brands, had a record year in 2022 with a 23 per cent jump in revenue.

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