A trip to H&M often feels like going on a blind date – it’s probably going to be harmless, but it may not be worthwhile.
But if there was ever a time to risk a visit to the fast fashion store, it’s now.
That’s because pretty much everything is being sold at a steep discount right now, while H&M tries to get rid of all the inventory they amassed over the last season.
According to CEO Karl-Johan Persson, the weak sales they’ve seen lately in their spring garments section is a byproduct of a “high level of clearance sales combined with unusually cold winter weather.” Indeed, H&M’s physical locations have struggled in the first quarter of 2018. Their sales have fallen 61% compared to the year before. And even if cold weather has plagued their stores, winter’s wrath is not the only reason for the slow down.
Consumers are increasingly turning to stores like Asos and Zara for higher-end styles that remain affordable. And of course, online shopping has led to a decrease in foot traffic – the company’s online sales saw a 20% increase in online sales this quarter.
So if you plan to be within an H&M’s radar anytime soon, their extra cheap inventory could make it worth a look inside.
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H&M’s solution to their brick-and-mortar woes? The company is doing what any investor does when they notice their golden child plummeting in value. They’re diversify their portfolio.
Back in January, they announced their new Oscar Olsson led luxury brand “Nyden.” The new line will target millennials. And we can only image they’re trying to reel back in all those young shoppers who have found their shopping heaven in Asos instead.
And on the opposite end of the spectrum, they’re scoping out the discount sector by launching a marketplace that will sell popular brands at low prices. It’s called “Afound,” and will open in Sweden to start.
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Data Source: buzzfeed.com