79-year-old retailer closes 95 stores, shuts down a brand

A major fast-fashion retailer continues to reshape its store network, closing locations in markets around the world while eliminating the physical presence of an entire brand.

The retailer has already reduced its store count compared with a year ago, and its latest plans call for even more locations to close in 2026. For some shoppers, that could mean saying goodbye to stores that have become familiar parts of their communities.

Founded in 1947, H&M Group operates in more than 80 markets, with online sales in over 60 of them. Its portfolio includes brands such as H&M, COS, Weekday, Cheap Monday, Monki, & Other Stories, Arket, Singular Society, and Sellpy.

H&M had 95 fewer stores as of Aug. 31, 2026, compared with the same period a year earlier, bringing its total store count to 4,023 worldwide, according to its third quarter of fiscal 2026 earnings report .

Most of the year-over-year reduction occurred across its H&M and H&M Home brands. The decline represents a 2% reduction in the company's store count across all brands and markets.

CEO Daniel Ervér said during H&M's latest earnings call that the closures are part of an effort to improve the productivity of the company's store portfolio.

"As we invest in the most attractive locations, we close the least productive ones, and we upgrade existing stores and expand into new markets."

H&M is continuing to invest in technologies intended to improve the customer experience and store operations. The company is also offering a more relevant assortment in each store and increasing personalization across its digital channels as it works to create a more seamless customer journey.

"Through a more optimized store portfolio, more upgraded stores and a more personal digital experience, we are also elevating the customer experience as well as productivity in store and online," Ervér said in a statement in the company's earnings report.

During the nine months ended Aug. 31, 2026, H&M's net sales declined 4% in Swedish Krona (SEK) and remained flat in local currencies, according to its latest earnings report.

Operating margin for the same period increased to 8.5%. The company said improved profitability was driven primarily by its work on purchasing, cost control , and more efficient operations.

H&M store closure strategy extends into 2026

The latest closures build on actions the retailer began last year.

H&M previously announced plans to close around 200 locations globally by the end of 2025, primarily in established markets, as part of a broader effort to optimize its physical footprint in response to evolving consumer demand, according to its second-quarter fiscal 2025 earnings report .