H&M to Close 160 Stores by 2026, Here's Why

LONDON, KOMPAS.com - H&M will permanently close 160 stores globally throughout 2026.

This step is the company’s strategy to strengthen digital sales while optimising the performance of the most profitable stores.

The closures continue the company’s previous actions, having already shut down 163 outlets in various countries as part of business adjustments.

In its financial report, H&M stated that the store closure policy initially impacted sales performance this year due to adapting operations to a reduced number of stores.

Nevertheless, H&M expects sales to improve slightly this year.

The reduction in offline outlets aims to increase profits from flagship stores and cut operational costs.

Additionally, changes in shopping habits are the main reason for H&M’s decision.

Online sales have contributed around 30 per cent of the company’s total revenue.

“Customers want to shop anywhere and anytime, whether in stores, on websites, marketplaces, or social media,” H&M wrote.

Retail analyst Dominick Miserandino assesses that closing 160 stores aligns with the global shift to digital.

“Consumers now prefer online shopping and are less loyal to physical stores. This situation challenges many retail companies,” Miserandino said.