H&M to Slow Store Openings Amid Building Slump

H&M is the third largest fashion chain by revenue in the world, falling just behind The Gap and SA (a Spain-based store). The store has been steadily expanding and opening more stores in shopping malls around the world. I know, personally, that the three malls I have back home all have an H&M, and I also remember that when I was in Madrid there were H&Ms every couple of blocks. The point being, H&M is very popular, it serves men, women, and children and their ad campaigns can be found everyone and and very eye-catching. It comes as a surprise to hear that they are not opening up as many new stores as they had planned even though they've had quite the successful quarter with a 23% rise in profits. Some problems the company seems to be facing with opening more stores is reflected in dealing with expansion into the southern hemisphere, because of the reversal of the seasons, the company will have to reverse their sales process as well. This past term, sales were better than the company had predicted, but apparently the prices of their clothes were kept too low to make the significant profit. H&M is a very successful company, and it is likely that it will continue to be so and thrive no matter the economy.

Source: http://online.wsj.com/article/SB10001424052748704116004575521153400543746.html?mod=WSJ_Retailing_leftHeadlines

--Leah Stoltz