Words: Tom Ward
The coronavirus pandemic has been unkind to the British high street. In July, pubs reopened, only to have their opening hours capped at 10pm in September. In August, cinemas reopened. Then, last week, global chain Cineworld announced it would close all of its US and UK locations. Also last week, the world’s second biggest fashion retailer, H&M, announced it will close 250 stores globally.
The decision to shutter H&M stores comes, of course, as a result of the Covid-19-induced economic slump currently being felt around the world. According to H&M bosses, although sales had picked up between August and September, its September earnings were still around 5% lower than for the same month in 2019. The group’s pre-tax profits for the year up to 31 August were £210 million, reportedly better than expected, but with 166 of its stores permanently closed and local restrictions in place on others, it is clear the business is still struggling.
With 5,000 stores worldwide, it is currently unclear how many of H&M’s British outlets will cease trading. According to the BBC, H&M “has the contractual right to renegotiate or end leases on about a quarter of its stores every year” – something which has no doubt proven a handy get-out clause for the company in the current economic climate.
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