Sweden-based clothing retailer Hennes & Mauritz (H&M) has signed a long-term agreement with Chile-based shopping mall company Parque Arauco to open three stores in its Colombia properties.

Scheduled to open in the second semester of 2023, the new stores will be located in Pereira, Bucaramanga and Barranquilla.

Together, these stores will cover 6,000m² of area.

The H&M store in Parque Alegra, Barranquilla, will span 1,900m² while the store in Parque Arboleda mall, Pereira, will be 1,900m^².

The retailer will also open a 2,200m² store in Parque Caracolí, Bucaramanga.

For Parque Arauco, the agreement with H&M is part of the several investments totalling $8.5m planned in Colombia for this year.

The company also plans to renovate and expand the commercial mix in different assets. It will be funded with the cash flows generated by the operation.

Parque Arauco Colombia Division general manager Diego Bermúdez said: "We are very pleased with the results we have achieved. In recent years, we have achieved solid growth in the sales of our tenants in Colombia and it is gratifying to confirm not only the preference of our visitors but also the trust of important brands like H&M and other tenants who continue to choose Parque Arauco's shopping centres as part of their expansion strategy in the country."

In February 2023, H&M posted net sales of Skr223.55bn ($21.7bn) for fiscal year 2022, a 12% rise from the prior year.