H&M sales in India increase 33% amid slowdown
NEW DELHI: Amid a slowdown in consumption in India, the sales of Swedish fast fashion retailer Hennes&Mauritz (H&M) increased by 33% last year to around Rs 1,490 crore.
The company, which opened eight new stores during the period, bringing the total number of stores across the country to 47, follows a financial year from December to November. In 2018, H&M recorded sales of Rs 860 crore.
“We are delighted with the results of India. In five years in the country and with almost 1.5 billion rupees, rupee sales show that customers are very happy with the H&M business idea, said H&M India country manager.
H&M, which is the second largest clothing retailer in the world, entered India in 2015 with plans to invest Rs 700 crore to open 50 points of sale in 2020.
It started selling online in 2018 and followed it by partnering with the fashion electronics store last year. Globally, too, its commitment to digital sales paid off, the company said in a statement. The witness witnessed an 18% growth in online sales in local currencies, said Karl-Johan Persson, CEO of H&M.
“The increase in sales at full price and the decrease contributed to an improvement in profits for the whole year and in the fourth quarter, when we achieved a 25% increase in operating profits, maintaining a high level of activity in our work of transformation For the entire year, group sales increased 6% in local currencies, he said.
While H&M will continue with the integration of physical and online stores, it plans to consolidate the amount of brick and mortar that operates worldwide. It is planned to open around 200 new stores in 2020, mainly in its growing markets, while at the same time consolidation will continue with around 175 planned store closures, mainly in established markets. The net incorporation of new H&M stores for the entire year 2020 is expected to be around 25.