H&M set to permanently close eight shops in Italy, Retail News, ET Retail

MILAN : Sweden’s H&M is set to completely near eight of its Italian stores, together with two in the country’s trend cash Milan, as it pushes forward with ideas that pre-day the COVID-19 pandemic.

The outbreak has compelled the world’s next-major trend retailer to temporarily near stores in far more than a dozen markets, together with all its outlets in Italy.

Right after 7 weeks of stringent lockdown measures – for the duration of which all businesses not deemed crucial ended up compelled to near- clothing retailers in Italy will be authorized to open once more on May possibly 18.

But H&M has advised unions that two of its major outlets in Milan and one in the southern town of Bari will in no way reopen their doors.

Concerning August and November it also intends to completely near outlets in the northern towns of Udine, Vicenza, Bassano del Grappa, Gorizia and in the Tuscan city of Grosseto.

“The final decision to near is connected to the economic sustainability of each individual unique retailer,” a spokeswoman for H&M in Italy reported in an emailed statement.

The statement reported that the group intended to “optimise its retailer portfolio, incorporate new services on the web and retain providing shoppers the very best purchasing expertise, by means of unique channels”.

H&M has been spending greatly to revive its business just after many years of slipping income and developing inventories because of to slowing product sales at its main H&M branded stores.

It is in the process of closing some H&M-model stores across Europe and opening new types mostly in rising markets.

The eight Italian outlets set to shut employ some two hundred personnel in total who can’t be laid off below current crisis measures in the nation, which is battling Europe’s deadliest coronavirus outbreak.

Gennaro Strazzullo, a member of the UIL nationwide union reported the business experienced not indicated the coronavirus crisis was a motive for its final decision.

“The business reported the closures are vital to assurance the prolonged-term sustainability of the agency, but the group is not struggling and their equilibrium sheets are very good,” he advised Reuters, just after a conference among unions and the business on the make a difference.

A more conference is scheduled for May possibly two.

Strazzullo reported unions ended up aiming to get some of the personnel moved to other work with the Swedish group in Italy.

H&M this month reported it expected a loss in the next quarter just after reporting a 46% plunge in March product sales.

The group helps make the bulk of its product sales in Europe, with Germany its single major market, adopted by the United States.

At the conclusion of its 2019 fiscal yr, at conclusion-November, H&M experienced 181 stores in Italy and a turnover of 8.forty billion Swedish crowns ($849.62 million) in the nation.