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| Coronavirus: H&M to close 250 stores worldwide | Coronavirus: H&M to close 250 stores worldwide |
| (32 minutes later) | |
| The world's second biggest fashion retailer, Sweden's H&M, says it plans to cut 250 of its stores globally. | The world's second biggest fashion retailer, Sweden's H&M, says it plans to cut 250 of its stores globally. |
| The closures will come next year after the firm said the Covid-19 pandemic had moved more shoppers online. | The closures will come next year after the firm said the Covid-19 pandemic had moved more shoppers online. |
| Although it said sales had continued to recover in September, they were still 5% lower than the same month in 2019. | Although it said sales had continued to recover in September, they were still 5% lower than the same month in 2019. |
| The firm has 5,000 stores worldwide, but it is not yet clear how many closures will be in the UK. | |
| H&M has the contractual right to renegotiate or end leases on about a quarter of its stores every year. | H&M has the contractual right to renegotiate or end leases on about a quarter of its stores every year. |
| The retailer said that it planned a "net decrease of around 250 stores" next year. | The retailer said that it planned a "net decrease of around 250 stores" next year. |
| While its pre-tax profits fell to 2.37bn Swedish krona (£210m) for the nine months to 31 August, this was better than analysts had expected. | |
| However, it said 166 of its stores worldwide remained closed, and a large number still had local restrictions and limited opening hours. | |
| High Street stores hit | |
| Analyst Richard Lim of Retail Economics told the BBC: "What we have seen generally over the past few months of the pandemic has been a step change in the number of sales going online. | |
| "That has affected all parts of the industry, but particularly clothing and footwear." | |
| He also said that in terms of consumers physically visiting stores to do shopping, there had been a move from high streets and shopping centres towards retail parks. | |
| "People can go in their cars instead of using public transport, and they are also able to buy in bigger bulk at retail parks," Mr Lim said. |