According to media reports today, the first store of the H&M brand in the Chinese mainland market has been quietly withdrawn recently. H&M has been closing stores intensively in the country since the second half of last year. So what exactly is going on? Let me introduce it to you below, let’s take a look.
1. Quick overview
The H&M store located at No. 651 Huaihai Middle Road, Shanghai, was closed on the 24th. This store is the first store of the H&M brand in the Chinese mainland market and has been open for 15 years.
It is reported that H&M has more than 380 stores in China. In the fourth quarter of last year, H&M closed 31 stores in the Chinese market. There are reports that H&M CEO expects to close 250 stores worldwide this year. H&M customer service responded that the business is currently suspended and is preparing to operate normally in other places, and is still in the process of relocation.
H&M's first-quarter financial report showed that its Asia-Pacific market performance continued to show negative growth, down 3% compared with the same period last year.
2. Related content
According to the Tianyancha App, H & M Hennes & Mauritz (Shanghai) Commercial Co., Ltd., an affiliated company of HM, was established in November 2006 with a registered capital of 5 million euros and is wholly owned by H & M Hennes & Mauritz Holding Asia Limited. The company has more than 600 branches in China, and more than 100 of them have been cancelled. From 2019 to 2021, 18, 22, and 51 branches have been cancelled.
In addition, risk information shows that HM's main company and branches have been fined many times for passing off substandard products and producing products that are not in line with the protection of human health.
The above is an introduction to the relevant content about HM closing its first store in China. I believe everyone has a better understanding of this.