H&M global closures: What it means for Australia

H&M has announced a series of store closures across the globe. Picture: NewsWire/Jane Dempster.

Confirmation that Swedish fashion retailer H&M will close 200 stores globally in an effort to cut costs has raised the question of what it means for Australian sites and the company’s commercial property footprint across the country.

The brand currently has 34 sites operating across Australia, a reduction from its peak of 49 stores in 2019.

A raft of closures in 2021 as a result of the coronavirus pandemic significantly reduced H&M’s presence in Australia but the recent announcement of further global closures could spell more bad news for its local presence.

Further potential H&M closures across Australia will come as a blow for the nation’s commercial property sector which is already feeling the squeeze from the rise of cheap online marketplaces like Temu and Shein.

The proliferation of online marketplaces like Temu and Shein have impacted big brands like H&M. Picture: NewsWire/Nikki Short

More and more Aussies are seeking cheap online alternatives to products, particularly in the fashion space, which is forcing numerous closures that lead to vacant shopfronts dotting major cities.

So far, H&M has shuttered 135 stores globally in the past nine months, including its flagship Brisbane store at Queen Street Mall which ceased trading in September after 10 years of operation.

H&M Group, which also operates the Monki and Weekday brands, said any closures would take place in established markets.

“For 2025, the plan is to open around 80 new stores. Most of the openings will be in growth markets. Just over 200 stores are scheduled for closure during 2025, mainly in established markets. The closures include a large number of Monki stores. A few of these will be converted into Weekday stores and the remaining stores are planned to be closed,” the company said.

H&M’s Brisbane flagship closed in September. Picture: NewsWire/John Gass

“In uncertain times with cautious consumers we monitor macroeconomic and geopolitical developments closely and continuously adapt both the customer offering and the business to meet our customers’ needs in the best way. We continue to strengthen the product offering and the experience both online and in our stores,” the company shared.

“The H&M Group works continuously to adapt the store portfolio based on customers’ behaviour in each market.”

H&M Group operates more than 4000 stores globally across 79 markets, employing up to 140,000 people.

Among confirmed future closures are H&M’s two large Manhattan stores in the US.

H&M has been contacted for comment about the possibility of further closures in Australia.