H&M closes 135 stores worldwide: which countries are affected by the cuts.

According to The Sun: The large company in the fashion industry has warned that the number of store closures could increase, putting branches in the UK at risk. A total of 135 stores have already been closed worldwide.

Management reported that these cuts are part of a large cost-saving program aimed at increasing profits as consumers are currently spending money cautiously.

Swedish company H&M confirmed that 21 of the closed stores are located in Western Europe, so British shoppers may soon see more closures.

According to H&M, their brand Monki is also affected by these cuts, and more closures are planned in the coming months.

The company reported that the cost-cutting program is yielding results. Operating profit rose to 4.91 billion Swedish kronor (£390 million) for the three months ending in late August. This is 1.4 billion higher than the same period last year.

Sales volumes also increased by two percent, reaching 57 billion Swedish kronor (£4.51 billion), despite the reduction in the number of stores, thanks to the improvement of the autumn collection.

The CEO, Daniel Erver, noted that the company 'is taking further steps in the right direction', but acknowledged that consumers remain 'cautious' in the current economic conditions.

He added: 'With a stronger offering for customers, improved gross profit, and cost control, we have strengthened operating profit compared to the same quarter last year.'

H&M, which has dozens of stores in the UK, continues to implement its restructuring plans to save cost and ensure long-term growth.

Experts warn that these changes could negatively affect British streets, placing an additional burden on already troubled shopping centres that have faced a number of closures.

Retail Problems

Like many other retailers, River Island has also felt the pressure from rising costs against declining consumer demand.

Recently, Hobbycraft closed its store in Crayford, London, on September 20, and is also preparing to close locations in Norfolk and Stafford on September 28.

This retailer initiated major sales of up to 70% discount across all three stores to clear stock before the closures.

This occurred following the closure of two more of the company's branches in Maidenhead and Chichester last Thursday.

The Original Factory Shop is also closing stores across the UK as part of a restructuring.

The closures affected the store in Market Drayton, Shropshire, and the company has already closed several stores this year, with a total of 28 stores at risk of closure.

Retail Pain in 2025

The British Retail Consortium forecasts that rising employer national insurance contributions will hit the retail sector by £2.3 billion.

Research from the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April.

A survey of over 4,800 companies found that 55% expect price increases in the next three months, exceeding 39% from a similar survey at the end of 2024.

Three-quarters of companies cited staff retention costs as a major financial burden.

The Centre for Retail Research (CRR) also warned that around 17,350 retail outlets could close this year.

This comes after a tough 2024 when 13,000 stores closed, already 28% more than the previous year.

Professor Joshua Bamfield, director of the CRR, noted: 'The 2024 closure results show that while the closure situation was not as dire as in 2020 or 2022, it is still concerning, and worse is ahead in 2025.'

Professor Bamfield warned of a pessimistic outlook for 2025, predicting a loss of up to 202,000 jobs in the sector.

“Rising costs for maintaining stores and increasing expenses for every household will likely lead to retail job losses exceeding the levels experienced during the pandemic in 2020.”