Connect with us

Hi, what are you looking for?


H&M to cut 1,500 jobs as retailers face slowing sales and rising costs

The Swedish fast-fashion chain H&M is to cut 1,500 jobs across its global operations as part of efforts to save 2bn Swedish Kroner (£158m) a year, amid slowing sales and rising costs for clothing retailers.

The group, which operates more than 4,600 stores in 70 countries with chains including Cos, Monki and Arket as well as its core brand, announced plans for the job cuts after profits fell 30% in the nine months to the end of August, partly resulting from the wind down of its operations in Russia in light of the war in Ukraine.

The company closed almost 200 outlets in the year to the end of August, mostly in Europe, as sales shifted online. It also said sales were weak in major markets over the summer while the cost of raw materials and freight rose.

H&M said the cuts would fall on head office operations around the world, including the UK, and would not affect store staff.

Explaining plans to make cost cuts at the time of its last financial report in September, Helena Helmersson, the chief executive of H&M, said the retailer had not been able to pass on the full impact of rising costs to shoppers. “In a situation of high inflation where household living costs are rising significantly, it is more important than ever to offer customers the best value for money,” she said.

In September, the company said sales in the early summer were weak in many of its major markets but later improved. The company is expected to reveal further tightening on sales and profits next month.

Fashion retailers anticipate a tough end to the year across Europe amid rising energy and food bills, which are diminishing households’ spare cash.

Overall spending on fashion was better than expected in the UK over the summer, as shoppers stocked up on holiday outfits and formal gear for a return to the office and for big events such as weddings after months of Covid restrictions.

However, spending on non-essentials is tightening through the autumn and winter now that energy bills have risen.

Clothing retailers are under particular pressure as unseasonably warm weather has hit sales of higher-priced coats, boots and knitwear, which provide a big chunk of annual profits. Retailers have also been forced to put up prices because of an increase in costs, further affecting volume of items shoppers are putting in their baskets.

The British fashion chain Joules called in administrators earlier this month putting 1,600 jobs and the future of the retailer’s 132 shops at risk after the online fast-fashion specialists Missguided and I Saw it First both went into administration over the summer before being bought out by Sports Direct owner Frasers Group. The cut-price chain Matalan also recently had to seek new funding.

Read more:
H&M to cut 1,500 jobs as retailers face slowing sales and rising costs

    You May Also Like


    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...


    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...


    Since the rise of online casinos, cybersecurity has become a major concern for both casino operators and players alike. The transactions that go around...


    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2023 | All Rights Reserved