H&M follows the fashion — and shuts

Global Swedish department store H&M has closed its 49 stores in Australia, affecting the jobs of more than 1300 staff.

The Swedish retailer had been enjoying huge success since its launch in Australia in 2014. Picture: AFP

Global Swedish department store H&M has closed its 49 stores in Australia, affecting the jobs of more than 1300 staff and joining a growing list of local retailers shutting down in the midst of the coronavirus pandemic.

The Swedish retailer had been enjoying huge success since its launch in Australia in 2014, when thousands of shoppers lined up outside its maiden store in Melbourne.

The retailer will launch an online store in the second half of 2020.

Latest financial results for H&M Australia published by its Swedish parent shows sales in 2019 rose to 2.539 billion krona ($414.96m), up from 2.283 billion krona in 2018. However, this sales uplift was boosted by the opening of new stores — from 44 in November 2018 to 49 a year later.

The giant fashion retailer has almost reached accumulated sales of $1bn in the past six years, with much of that revenue snatched from leading department stores Myer and David Jones. H&M’s arrival in Australia coincided with that of other popular overseas chains, including Zara and Uniqlo.

Although an instant hit since it launched in Australia six years ago, the popular Swedish retailer has taken its time opening an online store here. The company told its shareholders in its latest annual report that it would launch the online store towards the second half of 2020.

However, H&M Australia, much like other H&M stores around the world, remain closed indefinitely after Australians were urged to stay at home during the coronavirus pandemic. Its lack of an operational online store meant it could not even offer online shopping to its loyal Australian customers.

A spokesman for H&M Australia was not available for comment.

Around the world as of March 31, 3778 of H&M’s 5065 stores were temporarily closed. Since mid-March, all H&M stores have been closed in several of the department stores’ largest markets, including Germany, the US, Britain, France, Italy and Spain.

H&M was one of the first international retailers to feel the pinch of the health crisis, and in the second half of last quarter, growth was held back by the rapid outbreak of coronavirus, particularly in China, where its sales declined by 84 per cent in February. H&M said it was seeing a gradual recovery in China.