Swedish retailer H&M is reportedly exploring options to shut seven or up to 15% of its stores in Australia.
The Australian reported that the move is seen as encouraging customers to adopt its newly launched online offering.
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By GlobalDataH&M launched an online store in Australia at hm.com in October. It is offering online shopping in 52 markets.
The first brick and mortar Australia H&M store opened in Melbourne in 2014. Currently, there are 40 stores in the market.
The publication also reported that H&M is preparing to brief its 1,300 staff on the proposed closures.
In January, the retailer closed a store located in the Sydney suburb of Chatswood.
The news follows after the company revealed in its 2020 full-year report that it plans to close 350 stores and open over 100 new stores in 2021.
In the 2020 financial year, the group’s net sales fell to SEK187,031m from last year’s SEK232,755m. The pandemic significantly negatively affected the sales development noted, the company.
Net sales of the group in local currencies during the period from 1 December 2019 to 30 November 2020 dropped by 18%.
In October, the retailer revealed it would close 250 of its 5,000 stores next year, as the ongoing Covid-19 pandemic continued to affect its profit.
