If you’ve walked past an H&M store and spotted a “closing soon” sign, yeah, it’s jarring. The headlines pile up, and whispers start: is H&M going out of business? It sounds big. But the real story? H&M is sticking around. The store closures are part of a plan not the end of the road.
Some H&M Stores Are Closing, But That’s Not the Whole Story
Let’s zoom out first. H&M is still one of the biggest fashion retailers on the planet. You’ll find its red-and-white logo in hundreds of malls and shopping streets around the globe. A few closures grab attention, but most stores are business as usual.
Recently, the company announced it’s closing over 200 stores in 2025. That’s a notable number, sure. It sounds dramatic until you look at the bigger business plan. These changes are part of what H&M describes as a normal strategy to keep the brand profitable for the long haul.
Earlier this year, H&M already shut the doors on 135 stores. These weren’t just in one country; they spanned Asia, Africa, Oceania, and Western Europe. Still, when you do the math, that’s a small slice of their entire operation. H&M still runs thousands of stores worldwide.
Why Close So Many Stores? H&M’s Growth Strategy Explained
So, why chop out 200+ locations? It sounds ruthless, but it’s about getting lean and focusing on stores that make the most sense.
Global retail has changed a ton since the pandemic. Fewer shoppers are walking into malls, and more are buying their clothes online. Brands like H&M have to think harder about where their stores are and how they’re performing.
H&M quietly lays it out: They want “the right stores in the right locations,” and they’re betting on quality over quantity. In plain English, this means keeping the shops that draw steady crowds and letting go of those that don’t pull their weight.
The company also calls this “routine optimization.” They’re not tearing it all down they’re reshaping things so the stores they keep are more successful. The aim is profit and long-term growth exactly what you’d expect from a massive retail chain.
H&M in the US: What’s Next for Shoppers and Workers?
If you live in New York City, you’ve probably heard about the two Manhattan locations set to shut down early in 2026. These are decent-sized stores at 18 Church St. (in the Financial District) and 150 East 86th St. (on the Upper East Side).
After these two spots close, the city will still have eight H&M stores. So, shoppers won’t have to start buying socks online only.
For employees about thirty-one people the company says it’s offering them jobs at other nearby stores. No one likes losing their usual workplace, but H&M isn’t just waving goodbye to its people. There’s an effort to keep teams stable and avoid job losses where they can.
It’s not just happening in New York either. Across the US, a handful of underperforming stores are quietly exiting, but major urban centers still see H&M as a long-term player.
This Isn’t Just H&M: Retail Is Changing for Everyone
H&M isn’t alone in this cost-cutting thing. Plenty of other retailers some you probably grew up with are doing the same.
Claire’s, the jewelry and accessories chain you see in so many malls, filed for bankruptcy. They’re fighting to keep stores open, but they’ve had to let go of a good number too. Petco, the big-box pet store chain, decided to close roughly 25 locations to stay ahead of costs.
Why all this shuffling? It started accelerating after the pandemic. More shoppers moved to online purchases, and a lot of us rethought how often we needed to go out for clothes, accessories, or even pet supplies.
That leaves retailers making tough calls. It’s less about a failing business and more about adjusting to where buying habits are heading.
Physical Stores Still Matter for H&M
Don’t get the wrong idea. H&M is not abandoning brick-and-mortar stores. In public statements, the company’s leaders say stores are still a “core investment” area. They just want them to be in the right spots and set up to perform.
You can see it in how H&M continues to invest in remodeling stores, rolling out new lines, and keeping up the in-person experience. For them, it’s not a future of online-only sales. The plan is to balance digital and physical shopping, aiming for each arm of the business to support the other.
In a way, H&M is getting the best of both worlds. Close enough underperforming stores, keep the healthy ones, and pour more energy into reaching customers online. They’re reworking the footprint but not running away from malls or main streets.
What This Means for Shoppers: Fewer Stores, Better Experience?
Let’s say your neighborhood H&M store is closing. It’s a pain if you loved that location. But across the country, most people will still have one within a reasonable drive or subway ride.
The bigger idea: H&M wants to make the remaining stores feel better. They’re focusing on making sure every shop is busy and stocked with what people actually want to buy. Less dead weight means more investment in the places that still work. This can mean fresher selections, better service, and sometimes newer-looking spaces.
And for people who’d rather scroll than stroll, H&M’s online store keeps growing. That’s something almost every retailer is doubling down on after seeing the shopping habits of the last few years.
Are Store Closures Always Bad News for Retailers?
For shoppers, closed stores bring mixed emotions some nostalgia, some honest annoyance. The news cycle tends to frame these closures as red flags, but the context is important.
Retailers have always shifted store counts up and down. Sometimes, these cuts happen quietly. Other times, like now, companies are upfront about it because the numbers are bigger.
H&M’s closures are aimed at boosting profitability after a drop in foot traffic and rising costs during the last few years. If anything, these moves often end up keeping the business healthier for longer. It’s not fun in the short run, but it’s an investment in staying around.
Compare this to total shutdowns or bankruptcies which we aren’t seeing from H&M. In fact, if you look up the news, you won’t find any stories about liquidation or bankruptcy filings. The company is still opening some new stores and investing in strong markets.
The Global Picture: H&M Still Has a Huge Presence
Globally, H&M is still busy. Even with 200+ closures ahead, that’s off a network of thousands of stores. They trimmed about 19% of their locations since COVID-19 started, but that’s standard for a fashion chain recalibrating in a super competitive market.
Part of staying ahead is moving quickly. When a store starts losing money and local trends fade, H&M chooses to act now, not wait until losses snowball.
That’s the reality for pretty much anyone running a big clothing chain. You keep what works and pack up what doesn’t. Otherwise, you risk bigger problems later.
By 2025, even after these closures, most shoppers will still have easy access to H&M in malls and shopping districts. Meanwhile, the company keeps posting profits and hiring new people the hallmarks of a business that isn’t folding.
Routine Optimization, Not a Farewell Tour
Stepping back, the H&M story isn’t about the end for a major retailer. If you’re reading rumors on social media, keep in mind: routine store optimization is normal retail strategy. It just sounds louder when the closures hit big urban areas or high-traffic malls.
Think of it like pruning a tree. H&M trims weaker branches to help the rest grow. For curious readers who like to keep an eye on business moves, there’s a quick rundown of similar stories at Side Business Tips.
The main thing to remember: Store closures, even when they touch hundreds of addresses, aren’t automatic proof that a company is in trouble. H&M is making cuts but also betting big on its core stores and its online shop.
Wrap-Up: H&M Is Here to Stay, Just Looking a Little Different
If you love a bargain or just need your basics, don’t worry, H&M is nowhere near bankruptcy or disappearing. They’re doing what a lot of big retailers have to do in the 2020s: refocus, resize a bit, and invest in the future.
They’re keeping a sizable number of stores, investing in shopping experiences, and doubling down online. Some addresses will vanish, but the brand itself is sticking around.
As H&M puts it, this is about smart choices for the long run, not saying goodbye. For now, check the map, see which stores stay open, and expect the company to still be part of your shopping options for years to come.
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