Fast fashion has crossed deep transformations in recent decades. Brands that one day marked trend and dominated the market today faced the need to reinvent themselves to adapt to new consumption habits. Recently we talked about the case of United Colors of Benettonand now the story is repeated with H&Mwhich in recent months has begun to close several stores in Spain.
The Swedish firm that at the time competed from you to you with Inditex now faces the closure of dozens of stores in Spain. A blow that marks a before and after in our country, for one of the most iconic fashion brands of the fast fashion. The expected closure is 28 stores in the national territory and 492 layoffsso it is a crisis that, although expected by some experts, continues to cause a great impact on the textile sector. The decline of sales in physical stores, the rise of trade online And the growing interest in more sustainable consumption models has tuning the brand. But how has this situation been reached and what really supposes this closure for the fashion industry?
He arrived to unseat Zara and is now closing his stores
Despite having been one of Inditex’s main competitors for years, recent H&M numbers show a worrying reality. In the third quarter of 2024, the company registered a 30% drop in its benefitswhich meant a loss of about 258 million euros. Given this situation, the firm was forced to review its financial forecasts and take drastic measures to try to stop the economic bleeding.
The impact on Space has been significant since The country concentrates 17% of H&M closures worldwide. In recent months, emblematic stores of the brand have dropped the blind definitively. A clear example of this are the Closures of the establishments of Elche, Orihuela and Torrevieja, that supposed the dismissal of fifty workers. The situation remembers what happened in 2021, when H&M also closed key stores in Madrid, such as Gran Vía and Count Peñalver.
Factors that have led to the H&M decline
There are several reasons that have pushed the Swedish firm to make this difficult decision. First, changes in consumption habits have been decisive. Pandemia accelerated the transition to electronic commerceand many brands have seen how their sales in physical stores collapsed. Inditex has managed to adapt better to this transformation, betting on larger establishments and innovative purchase experiences, while H&M has taken longer to react.
Another key factor is the increase in production costs. With inflation affecting the textile industry and the increase in raw materials, the company’s profitability has been compromised. The competition has also played a crucial role. Emerging signatures like Shein and Temu, with their aggressive prices low cost And their completely digital business model have taken a large market share to traditional brands such as H&M.
As if this were not enough, the second -hand market is booming. Platforms like Vinned or Wallapop have gained popularity Among consumers looking for clothes at lower prices and more sustainable options. This has directly hit Fast Fashion brands, which are forced to redefine their strategy to continue being competitive.
The crisis of the textile sector: a problem that goes beyond H&M
The closure of H&M stores is not an isolated case, but a reflection of the crisis that the textile sector in Spain already worldwide. Since 2020, more than 18,000 fashion stores have closed in the countryand the number of physical points has fallen 30% since 2019. 2023, The total fashion establishments in Spain were 43,879, far from the 61,891 that existed before the pandemic.
Although fashion spending grew 4.89% in 2023, with an average of 922 euros per family, this apparent recovery has not translated into an improvement for physical stores. The reality is that Consumers have changed the way they buy clothes, prioritizing the comfort of online trade and the savings offered by other alternatives.
Less stores and more digitalization
Given this panorama, the big fashion companies have had to rethink their business model. Inditex, for example, has opted to close small stores and concentrate your activity on large flagship stores In key locations. In addition, it has strengthened its presence in electronic commerce, with improvements on its website and mobile applications that facilitate online purchase.
H&M is also trying to adapt. The company has implemented new technologies in its stores, such as AutoPago Boxes and Smart Testerswith the aim of improving customer experience and reducing costs. In addition, the firm is exploring new business lines, including more sustainable collections and collaborations with renowned designers.
However, competition is still fierce, and Brands like Shein and Temu continue to gain ground with their 100% online sales model and unbeatable prices. The second -hand market, meanwhile, is still growing, consolidating as a real alternative for consumers seeking fashion at affordable prices and with less environmental impact.
