H&M has had some trouble avoiding the news lately, and now they’re back in the spotlight for declining sales. According to their latest quarterly earnings report, profits continue to decline, leading the Swedish retailer to have to rethink its pricing structure. This could mean big savings at H&M over the summer, as the clothing brand prepares to slash its already low prices.
Part of H&M’s demise comes from the lack of in-store shopping in the U.S. and U.K. People have become so accustomed to shopping online for the latest trends in fashion that there have become growing piles of unsold merchandise. H&M reportedly was forced to burn these articles of clothing for energy because there was such a surplus. But, in an effort to sell the pieces that aren’t so popular instead of wasting them, the store is looking to put the pieces back out at a deep discount.
The H&M brand has lost two-thirds of its value since 2015, and its pretax profit has dropped to 670 million dollars, a 22 percent decrease from last year’s quarterly report. So if you’re looking to redo your wardrobe without breaking the bank, H&M might be a great place to start. Chief Economic Advisor Vicky Price said that this was not an isolated situation that pertains just to H&M, but rather “a more general malaise in the retail sector.” As online platforms continue to redefine the way we shop, take advantage of the low, in-store prices of H&M while you still can.
