The Despite the high-profile collaboration with Erdem and Nicki Minaj last fall, H&M admits that it is storing $4.3 billion worth of unsold dresses, accessories and other clothing, and has seen a 62% drop in profits over the past three months. The New York Times reported that This year in February.
Although this is also bad news for Swedish retailers, Swedish retailers also have Cos and other stories, which is good news for others because H&M plans to cut prices in the coming months to get rid of unsold Inventory to solve the problem. According to the “Washington Post” report, some of these stocks include several months of Halloween Costumes Outlet and Christmas sweaters.
The large amount of unsold clothing – which has grown by 7% last year – is just one example that this fashion giant can’t keep up with. In this world, more and more shoppers are skipping stores and switching to online shopping.
In addition to lowering prices, H&M plans to reduce the number of new stores opened and will focus its efforts on expanding its online business by 25% this year.
However, this may not be enough to solve the problem, financial analysts are not optimistic about the company. According to the New York Times, in fact, after seeing the company’s first-quarter results, some people even called H&M a “slow-motion wreck”.
Part of the problem is that millennium consumer bases have begun to choose well-made garments rather than cheap one-off products. Milton Pedraza, chief executive of the New York market research firm Luxury Institute, told the Washington Post. They are more interested in “classic and quality, and H&M cannot provide it.”
But for those who remain loyal to H&M, there are a lot of sales to watch over the coming months.