Business
H&M Hits the Wall
Retailer struggles to move on from its store-on-every-corner strategy
Pedestrians pass in front of a Hennes & Mauritz AB (H&M) store in New York.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
After saturating the developed world’s shopping districts with its clothing stores, Swedish retailer Hennes & Mauritz AB is bumping up against the limits of a business model that has made popping out for one of its $7 tank tops as easy as grabbing a cheeseburger and fries.
H&M reduced its store-opening forecast for a second time this year as online competition forces markdowns that are cutting profit margins and hitting its share price, which fell as much as 7.2 percent in Stockholm. The retailer said it will focus on e-commerce, new brands and developing markets in a quest for growth that’s becoming more elusive.