H&M Shrinks Footprint: 95 Stores Gone by 2026

H&M Group is actively reshaping its global store network, having closed 95 locations by August 31, 2026, compared to the previous year. This reduction, a 2% decrease across all brands, primarily affects the H&M and H&M Home brands. CEO Daniel Ervér stated these closures are part of an initiative to enhance store portfolio productivity by exiting less successful sites and investing in prime locations.

The retailer is simultaneously investing in technology to improve customer experience and operations. H&M aims for a more personalized digital experience and a relevant assortment in stores. This strategic adjustment continues a trend initiated last year, with further plans for 2026 including approximately 90 new store openings and around 170 closures, predominantly in growth markets.

This restructuring aligns with broader retail trends where companies balance physical presence with expanding digital businesses. H&M's approach involves optimizing its store count while boosting investments in its digital capabilities and select high-performing physical locations. This omnichannel strategy aims to meet customers effectively across both channels.