austerity program
H&M is closing branches in Germany: These locations are closing
This year, too, more H&M branches are to disappear from German inner cities – according to the group for economic reasons
© Christoph Hardt/Geisler-Fotopres / Picture Alliance
The fashion group H&M is closing more branches in Germany this year for economic reasons. In Cologne, one of the stores was already closed at the end of April. The number of branches has continued to decrease in recent years.
This article first appeared on RTL.de
The number of H&M stores in Germany has been falling since 2019. The number of branches has fallen by 38 locations to 430 in recent years. And there will be even fewer: H&M will close more branches in 2023.
As “Textil Wirtschaft” reports, H&M is closing the branch on Schildergasse in Cologne. April 29th was the last day open here. However, there are two more branches in downtown Cologne: on Schildergasse 98-100 and on Hohe Strasse 113-115. In May, the fashion chain will be operating five more branches in Germany’s fourth-largest city.
H&M is also closing the store on Georgstrasse in Hanover. October 28th is the last day of sales in this branch. From November, H&M will then operate three more branches in Hanover. In the store in the Ernst-August-Gallery, H&M is expanding the sales area by 400 square meters so that the Divided line can also be offered there.
The branches have to close for economic reasons, H&M explained at the request of “Textil Wirtschaft”.
Textile trade in crisis: Not only H&M affected by branch closures
In September 2022, H&M announced an austerity program that should save around two billion crowns (approx. 180 million euros) annually. In November 2022, the group announced that it would cut 1,500 jobs. In addition, the branch network is to be further thinned out, with around 100 stores to close worldwide.
The textile trade is experiencing difficult times overall. In Germany alone, several insolvencies have been reported in recent weeks.
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The Düsseldorf fashion retailer Peek & Cloppenburg applied for a protective shield procedure at the beginning of March and wants to reposition itself. All 67 sales outlets in Germany and the online shop will remain open without restrictions.
The fashion chain Gerry Weber is in a permanent crisis: Three years ago, only insolvency proceedings could save the traditional company. As was announced in April, it must now be renovated again. This time, every square meter in the branches and outlets of Gerry Weber is under scrutiny.
And the German men’s fashion manufacturer Ahlers also announced in April that it would have to file for bankruptcy due to impending insolvency. The manufacturer includes well-known brands such as Pierre Cardin, Otto Kern, Baldessarini and Pioneer.
It is to be hoped that the employees of H&M will be spared a similar crisis.