H&M to Close Hundreds of Stores This Year, Mall Retail Boss Says This
Jakarta, CNBC Indonesia - News of the closure of stores by the Swedish fashion retailer H&M has caught the attention of retail players. Reportedly, H&M will close 160 of its outlets worldwide this year.
Chairman of the Indonesian Retailers and Shopping Centre Tenants Association (Hippindo), Budihardjo Iduansjah, stated that the Swedish fashion retailer’s plans are a normal dynamic in the retail industry. In Indonesia, he said, the H&M stores that close will immediately be filled by other brands.
“H&M is indeed closing some of its stores, but the former locations will be filled by brands handled by operators. There are brands, so the stores will just change brands, that’s what I’ve heard,” Budihardjo told CNBC Indonesia on Thursday (30/4/2026).
“In retail, things like store renovations, store shrinkage, store expansion, store closures, and store openings are all part of the strategy. Where there is still purchasing power or consumer behaviour that wants it and there are still plenty of sales, those will be opened,” he explained.
Separately, Chairman of the Indonesian Shopping Centre Managers Association (APPBI), Alphonzus Widjaja, said that H&M’s global business difficulties are also contributing to its performance in Indonesia.
“H&M’s global business is indeed experiencing difficulties that also impact its performance in Indonesia,” said Alphonzus.
However, he declined to comment further on the closure of H&M stores.
Hundreds of Stores to Close
Citing The Sun, H&M has previously closed 163 stores worldwide and plans to close another 160 this year, then shift its business focus to e-commerce and investments in the most profitable locations.
Throughout the first quarter of this year, the Swedish fashion retail giant reportedly recorded a profit decline while adjusting its business to online and cutting some stores.
“Optimising the store portfolio has a somewhat negative impact on first-quarter 2026 sales, due to store closures and rebuilds,” H&M stated in its revenue report, quoted from The Sun.
“However, for the full year 2026, the sales effect from store optimisation is expected to be slightly positive,” it added.
The company explained that this step is taken to improve efficiency, including boosting margins per square metre and reducing operational costs.
This phenomenon also reflects changes in global consumer behaviour.
“Buyers now prioritise value more, shop online more, and are less loyal to traditional physical stores,” said CEO of Retail Tech Media Nexus, Dominick Miserandino, previously to The U.S. Sun.
“That’s why we’re seeing so many companies stumbling. The economic situation is tough,” he added.
Big Discounts on H&M Website
Amid these adjustments, H&M is also seen aggressively promoting digital sales. Based on observations by CNBC Indonesia on its official website, the company is featuring major promotions such as “Buy 2 Get 1 Free” in its payday deals programme.
This promotion is one way to attract consumers, in line with the shift in shopping patterns to online channels.