Mail order companies such as Asos, Zalando and Amazon have long dominated the online fashion market. The Swedish fashion chain Hennes & Mauritz (H&M) is now introducing third-party brands in its online shop for the first time. Initially, such goods would only be sold via the Swedish and German platforms, said a company spokesman. On the “H&M with friends” website, customers will in future be able to buy clothing from Lee, Wrangler or Kangol, among others. Other countries and brands will follow later. So far, H&M only offered cosmetics from other manufacturers.
The fashion retailer suffered particularly in the corona pandemic. In 2021 alone, H&M closed 321 stores worldwide. This year, 240 more closures are to follow, the business magazine reported Business Insider. In particular, developed markets such as Germany are affected by the dismantling. In return, 120 new stores are to be opened in Ecuador, among other places.
Despite gloomy prospects, the company is on course for recovery. From December to the end of February, the fashion chain’s sales grew to 49 billion Swedish crowns (around 4.65 billion euros). This corresponds to an increase of 23 percent compared to the same period last year, as the company announced on Tuesday in Stockholm. In the last quarter, the increase was even lower at eight percent. Nevertheless, the Ukraine war can dampen sales developments. Like many other companies, the fashion giant stopped doing business in Russia at the beginning of March. The full balance sheet is due to be published at the end of the month.
H&M has ambitious goals for the coming years. By 2030 at the latest, the company wants to double its sales from 2021. The Swedes want to achieve an operating margin of ten percent by 2024 at the latest. The growth is to be supported by the expansion of the online business and entry into new markets.
With this step, H&M is entering a business field that was previously dominated by Zalando. The Berlin Dax group now has more than 48 million customers across Europe and increasingly sees itself as a fashion platform through which other retailers, fashion brands or stationary shops can sell their goods. This now also includes an extensive second-hand range.