H&M has confirmed that its store closures will continue, with 128 locations already shut as of May 31, 2026, according to the company's second-quarter earnings report. The 79-year-old fast-fashion retailer, founded in 1947, now operates 4,038 stores globally, a 3% reduction compared to the same period last year.
Restructuring Amid High Street Crisis
The closures are part of a years-long restructuring effort aimed at strengthening long-term profitability and improving customer engagement. H&M Group, which owns brands including COS, Weekday, Cheap Monday, Monki, and Sellpy, is slimming its physical footprint while investing in digital and mobile channels. The company operates in more than 80 markets, with 60 online.
Traditional high street retailers are under pressure from rising operating costs, changing consumer behaviour, and competition from ultra-low-price rivals like Shein and Temu. These online platforms have set new benchmarks for fast fashion with low prices and rapid product turnover, squeezing established brands.
CEO Explains Strategy
H&M CEO Daniel Ervér explained the rationale in the company's latest earnings call: "The purpose of the change is to make sure that we become more relevant for our customers by becoming close to our customers and move mandate and decision making closer to our customers so we take quicker decisions to become more relevant."
H&M previously announced plans to close around 200 locations globally by the end of 2025, primarily in established markets. That effort has continued into 2026, with the store count falling from 4,050 at the end of the first quarter to 4,038 by May 31.
New Store Openings Planned
Despite the closures, H&M plans to open approximately 90 new stores and expand into new markets. Seven stores in Brazil are scheduled to open in the second quarter of 2026, following the first store opening in Rio de Janeiro in April. Paraguay, Malta, and Azerbaijan are also entering the network in 2026, with Argentina expected to launch through a franchise model in 2027.
