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Tag: h&m

  • H&M Shifts Southeast Asia HQ to Kuala Lumpur, Triggers Job Cuts in Singapore

    H&M Shifts Southeast Asia HQ to Kuala Lumpur, Triggers Job Cuts in Singapore

    Swedish fashion conglomerate, H&M, has recently undertaken a restructuring exercise which has led to job cuts in Singapore. This move comes as the retailer transfers its Southeast Asian hub from Singapore to Kuala Lumpur in Malaysia.

    The restructuring operation resulted in a reduction of 78 roles from a total regional workforce of 256 employees. While the exact breakdown of the redundancy hasn’t been made public, it has been confirmed that the majority of job cuts took place in the Singapore office.

    In replying to inquiries, H&M Singapore said that it is “fully backing” employees through the organizational shifts. However, the company did not disclose the exact number of dismissed staff members or specify the affected roles. H&M stated that as a company, they constantly strive to meet customer expectations and this includes regular reviews of their operational efficiency and agility.

    Despite the recent layoffs, H&M maintains that Singapore remains a crucial market for them. The retailer confirmed that it would continue to sustain an office in the country. “We will continue to maintain our retail presence reflecting our long-term commitment,” said a representative of the company.

    H&M first entered the Singapore market in 2011 with its Somerset outlet. Currently, the brand operates six stores in the country. Over the past couple of years, however, H&M has been closing some of its physical stores. In March 2023, the retailer closed its two-storey outlet at Ion Orchard after serving customers for over a decade. The Tampines Mall store was shut in August 2020, followed by the Waterway Point outlet in Punggol in January 2021.

    The Singapore Manual and Mercantile Workers’ Union (SMMWU) released a statement saying that while H&M Singapore is not a unionized entity, some employees could be union members. SMMWU secretary-general Andy Lim asserted that both the National Trades Union Congress and the SMMWU are prepared to offer assistance to these members and help them transition to new job opportunities.

    Questions & Answers

    Why is H&M moving its Southeast Asian headquarter from Singapore to Malaysia’s Kuala Lumpur?
    – Although H&M did not provide a specific reason for the shift of its Southeast Asian headquarters, such decisions are often influenced by cost factors, market opportunities, or strategic alignment.

    What are some of the steps H&M is taking to support its affected employees?
    – Although additional details were not provided, H&M Singapore stated that they are “fully supporting” their employees during these organizational changes.

    How will H&M’s presence in Singapore change as a result of this move?
    – Despite the layoffs and the shift of its regional headquarters, H&M has affirmed that Singapore remains an important market for them. The company will maintain a retail presence in the country, reflecting their long-term commitment.

  • H&M: Shrinking Store Network Hits Sales, But Profits Skyrocket Amid Optimized Portfolio

    H&M: Shrinking Store Network Hits Sales, But Profits Skyrocket Amid Optimized Portfolio

    In the first fiscal quarter, Swedish fashion powerhouse H&M witnessed a decrease in sales, corresponding with a reduction in the total number of store locations.

    Sales Performance

    By the end of the quarter, which concluded on February 28, net sales were reported to be SEK49.6 billion (US$5.2 billion)—a 1% year-on-year decrease in constant currency. The company saw a 4% reduction in stores, or 163 fewer outlets, compared with the same timeline last year. The global store count was noted to be 4050 as of February 28.

    H&M is undertaking steps to strengthen its long-term position and further enhance profitability through the optimization of its store portfolio. Actions include the renovation of existing stores, the opening of new outlets, and closure of others.

    However, reported net sales witnessed a 10% decrease, largely due to currency translation. The quarter began with a weak December, with a noticeable demand drop after November’s Black Friday trading. However, a positive sales trend emerged towards the end of the quarter, driven by the successful reception of the spring collections.

    Regional Sales Performance

    Sales in Asia, Oceania, Africa, and the Americas fell 3% when calculated in constant currency. In Western and Eastern Europe, sales were down by 1%, whereas Southern Europe saw a sales increase of 3%. Sales performance in the Nordics remained steady.

    Gross margin rose from 49.1% to 50.7% during the quarter. The operating profit saw a significant boost with an increase of 26%, amounting to SEK1.512 billion. Profit for the period also grew by 21.5% to SEK704 million. CEO Daniel Ervér attributed the strengthened profitability to good cost control and an improved gross margin, despite cautious consumption and large currency translation effects.

    Ervér also stressed the significance of flexibility in the current challenging macroeconomic environment, which is marked by increased geopolitical uncertainty.

    Future Expectations and Concerns

    H&M anticipates a 1% increase in sales in constant currency for March in the current quarter. The company is closely observing the developments in the Middle East, along with the potential implications on global trade. The Middle Eastern markets, which are managed through franchise partners, account for a minor portion of H&M’s sales.

    Questions & Answers

    What was the net sales value for H&M in the first fiscal quarter?
    The net sales value was SEK49.6 billion (US$5.2 billion).

    What changes are being undertaken within H&M’s store portfolio?
    Actions include updating existing stores, opening new ones, and closing some outlets.

    What is the anticipated sales increase for March in the current quarter?
    H&M expects a 1% increase in sales for March in the current quarter.

  • H&M Closes Q4 with Soaring Profits Amid Cost Control & Inventory Efficiency, Softening Demand Forecasted

    H&M Closes Q4 with Soaring Profits Amid Cost Control & Inventory Efficiency, Softening Demand Forecasted

    Despite limited sales growth and a reduction in store counts, H&M ended the year with robust profitability and stringent cost control.

    Q4 Performance

    The fourth quarter, concluding on November 30, saw a 2 percent increase in sales. This growth was achieved despite a 4 percent reduction in store operations compared to the same period last year. The retailer’s operating profit escalated 38 percent to US$738.3 million, driving the operating margin up to 10.7 percent from 7.4 percent the previous year. The gross margin also increased to 55.9 percent. H&M attributes this successful quarter to an enhanced product offering and superior inventory productivity, even with selling and administrative expenses on the wane.

    H&M CEO Daniel Erver highlighted a strong customer offering, effective cost control, and improved inventory productivity as the main drivers of this quarter’s performance.

    Annual Results

    Over the year, H&M reported a 2 percent rise in net sales in local currencies. However, reported sales demonstrated a decline, settling at $25.7 billion. Operating profit saw a rise, reaching $2.1 billion and lifting the operating margin to 8.1 percent from the previous year’s 7.4 percent.

    Net profit also saw an increase, reaching $1.3 billion, while cash flow from operating activities grew to $3.5 billion. According to Erver, the company saw an improvement in earnings during the second half of the year, attributing it to a focus on enhancing relevance and speed across the product offering.

    Erver added, “We continue to make significant strides towards all our long-term goals despite challenging environments.”

    Future Projections

    Looking forward, H&M predicts a 2 percent decline in sales in the upcoming months in local currencies. This projection is based on a softened demand following strong Black Friday sales and a negative calendar effect due to the timing of the Chinese New Year.

    H&M also plans to expand its physical and digital presence in growth markets such as Brazil and other parts of Latin America. This expansion strategy will be complemented by an ongoing optimization of the store portfolio and increased use of artificial intelligence.

    Questions & Answers

    What were the key contributors to H&M’s fourth-quarter performance?
    The performance was primarily driven by a stronger customer offering, good cost control, and improved inventory productivity.

    What factors led to the improvement in H&M’s annual earnings?
    H&M’s annual earnings saw an improvement due to a focus on enhancing relevance and speed across the product offering.

    What is H&M’s growth strategy for the near future?
    H&M plans to expand its physical and digital presence in growth markets such as Brazil and other parts of Latin America, alongside ongoing optimization of the store portfolio and increased use of artificial intelligence.

  • H&M Leverages Young Filipino Talent to Fuel Exciting Growth Opportunities

    H&M Leverages Young Filipino Talent to Fuel Exciting Growth Opportunities

    H&M is setting its sights on the vibrant youth demographic of the Philippines as a catalyst for its growth in Asia, according to Saed El-Achkar, the Regional Manager and CEO of H&M’s Greater China and East Asia Regions. With nearly 11 years of presence in the archipelago, boasting 41 stores and a thriving online platform, the Swedish fashion behemoth recognizes that a confluence of trends is reshaping the Philippine retail landscape.

    Youthful Energy Driving Fashion Consumption

    At the heart of this transformation is the country’s youthful population, with an average age of just 27 years—a statistic that ignites enthusiasm in a way that’s rare in many corners of the globe. “That’s something that you cannot find in many countries around the world, which is incredibly exciting and interesting,” El-Achkar remarked. This youthful energy isn’t just about age; it fuels a fierce passion for fashion and a lifestyle reflective of broader global trends.

    Fashion-forward and Digitally Savvy Shoppers

    Filipino consumers are not just buyers; they are fashion-hungry individuals eager to express their style. El-Achkar emphasized their positive outlook, stating, “Customers are fashion hungry, enthusiastic about life, happy. People want to look good, feel good and be nice, and then continuously celebrate, which is super exciting.” This zest for life, coupled with their strong digital habits, paints a picture of an engaged consumer base. “The Filipino customer is very social, not only physically, but also digitally,” he explained. Their presence on platforms like Instagram and TikTok enhances their connection to fashion, making them a dream audience for any retailer, including H&M.

    Strategic Importance and Cultural Resonance

    Beyond just numbers, the Philippines’ geographic and cultural positioning plays a crucial role in H&M’s regional strategy. Nestled in Southeast Asia, the nation benefits from rich diversity and a growing appetite for international fashion trends. As El-Achkar highlighted, the way Filipino customers perceive fashion and their openness to global trends make the country a pivotal market for the brand. “It is incredibly important for us,” he affirmed.

    A Vision for the Future: Enhancing Customer Engagement

    Looking forward, H&M’s mission is clear: to deepen customer engagement by enriching both in-store and online shopping experiences. “Our journey or our mission is to liberate fashion for the many, make sure that fashion is as close as possible to all our customers… by elevating the fashion level, by elevating the experience, both in our stores and on our online platform,” said El-Achkar. This dual focus on enhanced experience and personal connection is designed to build lasting relationships with consumers, ensuring H&M remains a staple in Filipino wardrobes for years to come.

    Questions & Answers

    What is H&M’s primary strategy in the Philippines?
    H&M aims to capitalize on the youthful and digitally engaged population of the Philippines to drive its growth in the region.

    How does H&M view the Filipino consumer’s relationship with fashion?
    H&M sees Filipino consumers as enthusiastic and fashion-conscious, enjoying both life and personal expression through style.

    What role does digital engagement play in H&M’s approach?
    Digital engagement is crucial, as Filipino customers are highly active on social media platforms, enhancing their connection to fashion brands.

  • H&M Eyes Expansion In Ho Chi Minh City Amid Southeast Asia Growth Strategy

    H&M Eyes Expansion In Ho Chi Minh City Amid Southeast Asia Growth Strategy

    The Swedish fast-fashion behemoth, H&M, is set to broaden its reach in Ho Chi Minh City, a bustling retail hotspot in Vietnam, as a crucial part of its larger growth strategy for Southeast Asia.

    Expansion Plans for H&M in Vietnam

    According to local sources, H&M Vietnam is actively scouting for opportunities to inaugurate new stores in the city’s prime commercial hubs. As it stands, the brand runs 14 stores throughout the country, with plans to increase this to 20 in the upcoming years. A significant emphasis is being placed on the city center of Ho Chi Minh City for these new store openings.

    In order to ensure a smooth expansion, H&M is diligently navigating local lease processes and adhering to regulatory requirements.

    H&M’s Growth in Vietnam and Beyond

    H&M ventured into the Vietnamese market in 2017. Despite this, its store count remains small when stacked against other markets in the region, such as Malaysia, Thailand, and the Philippines.

    However, it’s worth noting that the brand is experiencing a global resurgence, with its operating profit witnessing a 40 percent surge to US$523 million in this year’s third quarter. Additionally, their operating margin has also seen a rise, going up from 5.9 to 8.6 percent.

    Questions & Answers

    When did H&M first enter the Vietnamese market?
    H&M first entered the Vietnamese market in 2017.

    How many stores does H&M currently operate in Vietnam?
    At present, H&M operates 14 stores across Vietnam.

    What are H&M’s expansion plans in Vietnam?
    H&M plans to grow its presence in Vietnam by increasing its store count from 14 to 20 in the coming years, with a particular focus on central Ho Chi Minh City.

  • H&M Reports 40% Surge In Operating Profit Despite Market Uncertainties And Outlet Reduction

    H&M Reports 40% Surge In Operating Profit Despite Market Uncertainties And Outlet Reduction

    In the third quarter of this year, Swedish fashion conglomerate H&M reported an operating profit increase of 40% to US$523 million, with its operating margin escalating from 5.9% to 8.6%.

    Key Factors driving the Increase

    The company attributed the favorable performance to enhanced customer offerings, better gross margin, and effective cost control. The company’s gross profit reached US$3.19 billion, with the gross margin rising to 52.9%, a substantial increase from the 51.1% recorded in the same period the previous year.

    Despite a 4% decrease in the number of outlets, H&M still managed to boost its sales in local currencies by 2% compared to the same timeframe last year. Nonetheless, the company’s net sales dropped slightly from US$6.24 billion to US$6.03 billion, a decrease largely influenced by a currency translation effect on the SEK.

    Company’s Strategy amidst Uncertainty

    H&M CEO Daniel Erver acknowledged the ongoing market uncertainty and the cautious consumer behavior it has bred. Despite these challenges, Erver emphasized the company’s unwavering focus on improving its customer offerings and maintaining value for money. Erver believes that the company’s strong culture, combined with effective cost control and flexibility, provides a stable foundation for achieving long-term, profitable, and sustainable growth in an increasingly complex environment. The company remains committed to its ambitious sustainability goals.

    Expansion and Digital Transformation

    H&M marked its entry into the Brazilian market in August by launching its first physical and online stores. The company also opened a new flagship store in Paris’ Le Marais, featuring a curated selection and a novel interior design concept. As part of its global strategy, H&M introduced its revamped digital store earlier this year. The brand is focused on upgrading a significant portion of its physical stores by improving layouts, presentations, and incorporating technology to elevate the customer experience.

    Questions & Answers

    What factors contributed to H&M’s increase in operating profit?
    Enhancements in customer offerings, improved gross margin, and effective cost control led to an increase in H&M’s operating profit.

    How is H&M adapting to the ongoing market uncertainty?
    Despite market uncertainties, H&M is focusing on its customer offerings and maintaining value for money. The company aims to leverage its strong culture, effective cost control, and flexibility to achieve long-term, sustainable growth.

    What are H&M’s recent expansion and digital transformation initiatives?
    H&M recently entered the Brazilian market with both physical and online stores. The company has also launched an upgraded digital store and is working on improving the layouts, presentations, and in-store technology at many of its global outlets.

  • Gill Capital Revolutionizes H&M With Ai-powered Search Agent And Virtual Shopping Assistant

    Gill Capital Revolutionizes H&M With Ai-powered Search Agent And Virtual Shopping Assistant

    Gill Capital Group is making waves in the retail sector with its recent pilot of a generative AI-powered search agent and a virtual shopping assistant on H&M’s e-commerce platforms in Indonesia and Thailand. This initiative seeks to enhance the online shopping experience, and early trials indicate it has achieved just that, resulting in boosted engagement and sales among test groups.

    Addressing the Challenges of Online Shopping

    The retail landscape is riddled with challenges, one of the most pressing being ineffective search functions that often misinterpret customer intentions. Gill Capital’s innovative search agent addresses this issue head-on, using natural language processing to accurately comprehend and interpret shopper queries. Whether a customer is searching for a breezy blouse in Thai or a chic tunic for Eid in Bahasa, the AI is designed to understand context over mere keywords, yielding more relevant search results.

    This intelligent system not only enhances the user experience but also streamlines backend operations by automatically organizing product catalogs. Gone are the days of employees manually sifting through inventory to assign keywords—now, they can focus on more strategic tasks.

    Transforming the Shopping Experience with AI

    In addition to the search agent, Gill Capital is integrating a conversational shopping assistant on H&M’s digital platforms. This smart agent provides personalized recommendations and can tackle complex inquiries, such as confirming product availability in local stores. By serving as a bridge between online and physical retail, it empowers shoppers and enriches customer service interactions.

    Victor Siow, Gill Capital Group’s Chief Data and Analytics Officer, emphasized the importance of staying ahead in the retail game. “While search technology has advanced from basic keyword matching to more sophisticated semantic searches, many online retailers haven’t kept pace. We’re leveraging Google’s powerful infrastructure to maintain our competitive edge,” he stated.

    Combining reasoning models like Gemini 2.5 Flash with its proprietary data, Gill Capital ensures that its AI delivers relevant and accurate recommendations across the board. The company isn’t just stopping with H&M; it plans to extend these AI solutions to other brands in its portfolio while also exploring new opportunities for innovation, particularly in supply chain optimization.

    These ambitious projects are currently being piloted under Google Cloud’s AI Cloud Takeoff program, launched in collaboration with Digital Industry Singapore (DISG). Gill Capital’s foray into AI isn’t just a technological upgrade; it’s a clear investment into the future of retail that could reshape shopping in Asia and beyond.

    Questions & Answers

    What are the key features of Gill Capital’s AI-powered search agent?
    The search agent excels at understanding natural language queries, comprehending local languages, and addressing user intent beyond basic keywords, enabling more relevant shopping results.

    How is Gill Capital enhancing customer service through AI?
    By incorporating a conversational shopping assistant, customers can receive personalized recommendations and resolve queries regarding stock availability, effectively connecting the digital experience with physical stores.

    What are Gill Capital’s future plans for its AI initiatives?
    The company aims to roll out these AI solutions to other brands within its portfolio while exploring further applications, particularly in optimizing supply chain operations.

  • H&M’s Balancing Act: Navigating Sustainability Goals Amid Rising Retail Competition

    H&M’s Balancing Act: Navigating Sustainability Goals Amid Rising Retail Competition

    In the fast-paced world of retail, brands often find themselves caught in a web of immediate consumer demands and long-term strategic planning. One company feeling the heat is H&M, which has recently made headlines for its sustainability initiatives and focus on ethical fashion. However, as the Swedish retailer grapples with fluctuating sales and increasing competition, a closer look at its approach reveals a mixture of innovation, challenges, and the occasional misstep.

    H&M’s Sustainability Journey

    H&M has positioned itself at the forefront of sustainability, pledging to use 100% recycled or other sustainably sourced materials by 2030. This ambitious commitment resonates well with eco-conscious consumers, particularly younger shoppers who prioritize sustainability in their purchasing decisions. Still, the journey has not been without pitfalls; the brand has faced scrutiny over greenwashing accusations, raising questions about the authenticity of its efforts.

    Facing Market Challenges Head-On

    As of mid-2023, H&M has reported a notable dip in sales, attributed partly to changing consumer preferences and the rise of fast fashion competitors who are nimble and aggressive. The retailer’s recent focus on overhauling its online platform and optimizing supply chains indicates a strategic pivot to better meet contemporary retail demands. A dash of urgency is in the air, as the brand aims to strike the right balance between sustainability and competitiveness — ensuring it doesn’t lose its footing in the rapid race that is retail.

    The Asian Market Landscape

    In Asia, where retail dynamics differ significantly from those in Europe and the Americas, H&M has been investing heavily. The brand has recently opened new flagship stores in key markets such as Bangkok and Shanghai, designed to deliver a more personalized shopping experience. It’s a gamble aimed at turning foot traffic into sales, as traditional shopping experiences are making a resurgence post-pandemic. Who knew that physical stores would have to go full circle and embrace digital experiences, incorporating tech-savvy elements while still allowing customers to feel the fabric before they buy?

    Looking Ahead

    The company is betting on strategic collaborations to further enhance its offerings. Partnerships with local designers and influencers have become pivotal in creating collections that resonate with diverse Asian consumers. By understanding local tastes and trends, H&M strives to craft a more cohesive brand narrative that appeals across cultural lines. The road ahead will require diligence and adaptability, and as H&M navigates these waters, the aim remains clear: to redefine what it means to be a responsible retailer in a rapidly evolving marketplace.

    Questions & Answers

    What sustainability goals has H&M set for itself?
    H&M aims to use 100% recycled or other sustainably sourced materials by 2030, reflecting its commitment to ethical fashion.

    What challenges is H&M currently facing in the retail market?
    H&M is dealing with declining sales due to shifting consumer preferences and stiff competition from fast fashion brands.

    How is H&M adapting to the unique demands of the Asian market?
    The retailer is opening flagship stores in major Asian cities and collaborating with local designers to tailor its offerings to regional tastes.

  • Former H&M CEO, Helena Helmersson, Joins Mango’s Board In Strategic Sustainability Shift

    Former H&M CEO, Helena Helmersson, Joins Mango’s Board In Strategic Sustainability Shift

    The Spanish fashion giant, Mango, has recently announced the addition of Helena Helmersson to its board of directors as an independent member. This move is designed to enrich the corporate governance of the company through a management approach directed by seasoned expertise.

    Helmersson, a distinguished professional, brings to the table an extensive international perspective and vast experience within the fashion industry. Mango’s CEO and Chairman, Toni Ruiz, expressed his confidence in her ability to steer the company towards greater success.

    Helmersson’s illustrious career in the fashion industry spans over two decades, during which she gained considerable experience in global operations, production, and sustainability. Her past roles include serving as the CEO of H&M and holding board positions at companies such as On and Quizzr. Currently, she holds the position of Chairperson at Circulose.

    Helmersson expressed her enthusiasm about joining Mango, praising the brand’s ambitious plans for development and global expansion. She recognizes and appreciates Mango’s commitment to leading sustainability practices in the industry and is excited to contribute to the future success of the company.

    Her appointment to Mango’s board is an integral part of the company’s 2024 to 2026 strategic plan, known as the 4E. This plan is set to shift the company’s focus towards innovation and sustainability while simultaneously aiming to increase sales through broadened realms of operation.

    Questions & Answers

    Who has recently been appointed to the board of directors at Mango?
    Helena Helmersson has been appointed as a new independent member of the board of directors at Mango.

    What is the purpose of Helena Helmersson’s appointment to the board of directors at Mango?
    Her appointment is intended to strengthen the company’s corporate governance structure through her expert-led management approach.

    What does Mango’s 2024 to 2026 strategic plan entail?
    The 4E strategic plan aims to shift the company’s focus towards innovation and sustainability while boosting sales through expansion.

  • Cos, H&m’s High-end Fashion Brand, To Debut In India With New Delhi Store

    Cos, H&m’s High-end Fashion Brand, To Debut In India With New Delhi Store

    Cos, the fashion brand owned by H&M and renowned for its “Collection of Style,” is set to make its debut in India later this year.

    Store Location and Offerings

    The inaugural store will be situated in New Delhi, India’s capital. It will exhibit the brand’s trademark contemporary aesthetic, featuring ready-to-wear collections along with accessories. The product range will cater to women, men, and children, thereby covering all demographics.

    Cos is globally recognized for its minimalist design, with a strong emphasis on craftsmanship. The brand is eager to bring its approach of creating long-lasting, durable fashion pieces to the new Indian market.

    Company Vision

    The company expressed its excitement for the new venture stating, “We are excited to introduce Cos to the Indian market and bring our emphasis on craftsmanship and innovative materials to a new audience.”

    Established in 2007, Cos has grown into a significant global presence. The brand operates 239 stores across 48 physical markets and holds an online presence in 38 markets. Apart from running its own outlets, the brand also sells through wholesale and franchise channels, marking its omnipresence in the fashion industry.

    Questions & Answers

    Where will Cos open its first store in India?
    The first Cos store in India will be opened in New Delhi.

    What is Cos known for?
    Cos is globally recognized for its minimalist design and a strong emphasis on craftsmanship.

    How does Cos distribute its products?
    Cos operates physical stores, has an online presence, and sells through wholesale and franchise channels.

  • H&M Founding Persson Family Increases Stake, Sparking Privatization Rumors

    H&M Founding Persson Family Increases Stake, Sparking Privatization Rumors

    The Persson family, one of Sweden’s wealthiest clans, has made quite the splash in the fashion world. Since 2016, they’ve poured over US$6.6 billion into H&M, claiming nearly two-thirds ownership of the brand. This move has sparked lively speculation about a possible return to private ownership, even though the family asserts otherwise, as reported by Bloomberg.

    Increasing their stake through Ramsbury Invest, the Perssons have offered minimal insight into their intentions, merely stating their unwavering belief in H&M.

    Despite their denials about taking H&M private, their steady accumulation of shares is raising eyebrows among minority shareholders. “This is something we’ve been discussing for years, and few would doubt that this is the direction things are headed,” remarked Sverre Linton, chief legal officer and spokesperson for the Swedish Shareholders’ Association.

    Linton urged the family to clarify their intentions and consider halting their share acquisitions if they truly aren’t planning a switch to private ownership.

    Thanks to reinvested dividends, the Perssons have inflated their H&M stake from 35.5% to nearly 64% over the past nine years. When considering extended family holdings, the Perssons command about 70% of the capital and roughly 85% of the voting rights, according to H&M’s own website.

    In an interview with Bloomberg last year, H&M Chairman Karl-Johan Persson, the founder’s grandson, brushed aside rumors of privatization, asserting, “There are no plans. We just buy because we believe in the company.”

    However, competition is heating up, with H&M wrestling against heavyweights like Zara and the rapid-fire fashion disruptor Shein. Last year, this iconic Swedish brand, nearly 80 years in the making, dropped its margin targets for 2024 as higher discounting, increased costs, and stiff competition eroded their operating profits, as Reuters reported.

    Analysts, such as Niklas Ekman at DNB Carnegie, speculate that the family’s ongoing share purchases might signify intentions that extend beyond mere confidence. In a recent note to clients, he indicated a buyout could materialize within two years if the family’s current pace continues, with the potential for a delisting after reaching 90% ownership.

    Ekman mused that a transition to private ownership would likely stem from “emotional rather than financial motives,” given the family’s existing dominance and historical penchant for prioritizing their vision over that of minority shareholders.

    At the heart of this drive is Stefan Persson, 77, who transformed H&M into a global fast-fashion behemoth during his 16-year CEO stint and subsequent two decades as chairman. He remains heavily engaged in the brand’s future. With a fortune of $18.6 billion, largely in H&M stock, he stands as Sweden’s wealthiest individual, according to the Bloomberg Billionaires Index.

    As H&M’s shares have plummeted by about 60% since peaking a decade ago, the company now holds a valuation of around US$23 billion, a stark contrast to its former glory.

    Questions & Answers

    What is the Persson family’s current stake in H&M?
    The Persson family’s stake has risen from 35.5% to almost 64% over the past nine years, giving them control of around 70% of the capital.

    Why are minority shareholders concerned?
    Their concerns stem from the family’s ongoing share purchases, which some believe could indicate intentions to take H&M private, despite family denials.

    How has H&M been performing recently?
    H&M has struggled against fierce competition and has dropped its margin targets for 2024 due to increased costs, higher discounting, and declining operating profits.

  • H&M launches on Shopee in Singapore and Malaysia

    H&M launches on Shopee in Singapore and Malaysia

    H&M has launched an online store on Shopee in Singapore and Malaysia in preparation for its Super Brand Day.

    H&M’s engagement with e-commerce platform Shopee is part of the company’s continued efforts to digitalize and provide customers with an optimal omnichannel experience, intending to give them a more “flexible and meaningful” shopping experience that matches their changing demands. With H&M’s presence on the platform, more customers can access the brand’s offer of fashion and quality at the best price in a sustainable manner.

    H&M also celebrated its first Super Brand Day on Sunday in Malaysia; another one will be held on Thursday, September 28 in Singapore.

    “With its strong presence in Singapore and Malaysia, Shopee complements and strengthens our existing network of physical stores, digital stores at hm.com, as well as marketplaces,” said Oldouz Mirzaie, MD of H&M South Asia.

    “We see a great opportunity for our brand to grow on this platform and further our vision of democratizing sustainable fashion by meeting our customers where, when, and how they choose.”

    Customers can now shop the whole spectrum of H&M’s fashion offers, including the trendy and bold pieces from the brand’s Fall/Winter collection, in the ladies, divided, mens and kids categories.

  • H&M Indonesia Boosts Productivity, Compliance, Employee Engagement, and Sustainability with YOOBIC

    H&M Indonesia Boosts Productivity, Compliance, Employee Engagement, and Sustainability with YOOBIC

    H&M Indonesia today revealed outstanding results from its partnership with YOOBIC, the leading employee experience platform for frontline teams in the retail and hospitality spaces. Adopted across the global retailer’s more than 60 stores and 290 frontline staff in Indonesia, YOOBIC’s all-in-one solution has significantly elevated employee engagement, communication, and productivity, as well as enhancing efficiency, compliance, and sustainability.

    Recognizing the considerable progress made since rolling out YOOBIC in 2022, H&M Indonesia received the coveted “Project Launch of the Year” title at this year’s YOOBIC Frontline Excellence Awards. The judges commended the retailer for achieving an impressive 99% user engagement rate and 97% compliance in operational, visual, and cash office standards since implementing the YOOBIC platform.

    The adoption of YOOBIC’s comprehensive frontline employee experience platform has greatly improved communication within H&M Indonesia. With features like private messaging, video calls, and group chats, staff members can easily interact with each other, fostering a strong sense of community and teamwork. Social media-style newsfeeds further enhance this environment by providing a space for co-workers to share announcements, success stories, and sources of inspiration. Frontline staff can also use the platform to directly communicate with store managers and company leaders, sharing advice, concerns, and feedback.

    Armed with YOOBIC’s unified digital platform, H&M Indonesia’s customer-facing staff also have the ability to automate and expedite manual tasks, enabling them to better manage their time and focus on higher value objectives, including building customer relationships. The clothing brand’s retail leaders, meanwhile, have hailed YOOBIC’s digitization of daily operations as a game-changer. Electronic checklists give store managers the ability to easily follow their team’s task completion, while the inclusion of real-time analytics and automated dashboards allows for the tracking of key performance indicators (KPIs) and compliance by HQ, ensuring that shopper experiences consistently meet the highest standards across all locations.

    YOOBIC’s extensive L&D capabilities have proved a hit with H&M Indonesia as well, bolstering the company’s dedication to ongoing employee growth. Store leaders can now seamlessly integrate training into their team members’ workflows, delivering interactive courses directly to their mobile devices in easily digestible chunks. This microlearning approach is enriched with data, providing managers with comprehensive insights into their employees’ progress and needs.

    “With YOOBIC, we’ve been able to harness frontline digitization and real-time analytics to solve a number of stubborn operational challenges, including difficulties around communication, productivity, compliance, and training,” said Karina Soegarda, Communications Manager, H&M Indonesia. “YOOBIC’s digitization of manual processes has also allowed us to cut paper usage by 30%, boosting our company-wide commitment to greater sustainability.”

    “Through real-time data sharing and digital task management, H&M Indonesia boosted productivity, launched 25 campaigns in six months, and elevated decision-making with analytics, all while making a significant reduction to paper usage,” said YOOBIC’s Paul Mabire, Head of Sales, APAC. “We’re proud to partner with a brand so committed to operational excellence and employee engagement — we can’t wait to keep innovating together!”

    YOOBIC’s collaboration with H&M Indonesia is an important element of the company’s wider expansion strategy in the Asia Pacific (APAC) region. According to the CBRE Asia-Pacific Retail Flash Survey report of January 2023, 71% of APAC retailers are planning to expand or open new stores this year. By 2025, retail sales in Southeast Asia, Australia, and New Zealand are projected to reach $1.77 trillion, positioning the region as the fourth-largest global market by 2050.

    YOOBIC stands ready to support APAC’s retail boom, providing a mobile-friendly and digitally-enabled workplace experience that enables retail staff to excel while fostering engagement and loyalty. YOOBIC’s comprehensive platform for frontline employee experience has been extensively tested and proven successful in hundreds of thousands of retail stores worldwide. Constantly evolving with product innovations and incorporating new technological features including AI features, YOOBIC effectively drives frontline employee communication, training, and operations, meeting the evolving needs of the industry.

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  • H&M probes alleged Myanmar factory abuses as pressure intensifies

    H&M probes alleged Myanmar factory abuses as pressure intensifies

    H&M is investigating 20 alleged instances of labour abuse at Myanmar garment factories that supply the world’s second-largest fashion retailer, it told Reuters, just weeks after top rival Zara-owner, Inditex, said it was phasing out purchases from the Southeast Asian country.

    A British-based human rights advocacy group tracked 156 cases of alleged worker abuses in Myanmar garment factories from February 2022 to February 2023, up from 56 in the previous year, indicating a deterioration of workers’ rights since a military coup in February 2021.

    Wage reduction and wage theft were the most frequently reported allegations, followed by unfair dismissal, inhumane work rates, and forced overtime, according to a report by the non-governmental organisation, the Business and Human Rights Resource Centre (BHRRC).

    “All the cases raised in the report by BHRRC are being followed up and, where needed, remediated through our local team on the ground and in close co-operation with relevant stakeholders,” H&M said in a statement.

    “We are deeply concerned by the latest developments in Myanmar, and we see increased challenges to conduct our operations according to our standards and requirements,” the Swedish retailer said.

    The BHRRC has been tracking allegations of workers’ rights abuses in garment factories since the military junta took power in Myanmar, plunging it into political and humanitarian crisis. The tracker includes abuse cases at 124 separate factories.

    The BHRRC said it tracks cases of alleged abuses through sources including union leaders, international media, and local media such as Myanmar Labour News, and seeks to verify reports by checking with brands and interviewing workers. Reuters did not independently verify its findings.

    There have been 21 cases of alleged abuses linked to Inditex suppliers over the two-year period, and 20 linked to H&M suppliers, according to the report. Inditex declined to comment on the report.

    A spokesperson for Myanmar’s military government did not reply to a request for comment on the findings. The Myanmar Garment Manufacturing Association did not reply to a request for comment.

    The decision by Inditex to exit came after Primark and Marks & Spencer announced plans to exit last year, in a trend that some say could ultimately leave garment workers worse off. Spanish fashion retailer Tendam also plans to stop sourcing from Myanmar, it said in its response to a BHRRC survey of brands published alongside the report.

    “We do have a plan to leave the country but it has not been announced yet,” Tendam wrote, without detailing its reasons. Tendam did not immediately reply to a request for comment.

    Primark told Reuters it expects its final orders from Myanmar suppliers to ship before the end of this year, but has also increased its presence on the ground. “As we work towards our exit, we’ve doubled the size of our Ethical Trade team on the ground, enabling us to more regularly visit the factories we still work with and giving us greater visibility,” Primark said.

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  • H&M to shut high-profile Singapore store

    H&M to shut high-profile Singapore store

     H&M’ s two-storey Ion Orchard outlet is closing in March, after a run of more than a decade.

    Opened in 2012, the store’s last day of operations is on March 12, according to a Facebook post by the Swedish fast-fashion brand on Feb

    The post added: “But don’t worry. We’ll meet in other places.” The retailer, which currently has nine outlets in Singapore, shuttered two outlets in recent years.

    H&M’s Tampines Mall outlet was shut in August 2020, while its Waterway Point outlet in Punggol closed in January 2021.

    The Straits Times has contacted H&M for comment.

    H&M entered the Republic in 2011 with a flagship store at Somerset.

    The world’s No. 2 fashion retailer – behind Inditex, which owns Zara – has had a spate of closures in Europe, spurred by factors such as the Ukraine-Russia conflict and high inflation.

    According to media reports, one in five of its Britain-based stores had closed in the past few years, with four more stores earmarked to close this year citing “a rapid change in customer behaviour”.

    In October 2020, the retailer said it planned to cut 250 of its stores globally. As at Nov 30, 2022, it had 4,465 outlets worldwide.

    Luxury brands have weathered factors such as the Ukraine-Russia conflict far better than their high-street counterparts.

    While H&M saw its net profit fall 68 per cent from 2021 to 3.6 billion Swedish kronor (S$450 million), French multinational LVMH – which owns brands including Tiffany & Co, Christian Dior and Sephora – had a record year in 2022, raking in a 23 per cent jump to hit €79.2 billion (S$112.9 billion) in 2022.

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