Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

H&M to cut 1,500 jobs as retailers face slowing sales and rising costs

by December 1, 2022
December 1, 2022
H&M to cut 1,500 jobs as retailers face slowing sales and rising costs

The Swedish fast-fashion chain H&M is to cut 1,500 jobs across its global operations as part of efforts to save 2bn Swedish Kroner (£158m) a year, amid slowing sales and rising costs for clothing retailers.

The group, which operates more than 4,600 stores in 70 countries with chains including Cos, Monki and Arket as well as its core brand, announced plans for the job cuts after profits fell 30% in the nine months to the end of August, partly resulting from the wind down of its operations in Russia in light of the war in Ukraine.

The company closed almost 200 outlets in the year to the end of August, mostly in Europe, as sales shifted online. It also said sales were weak in major markets over the summer while the cost of raw materials and freight rose.

H&M said the cuts would fall on head office operations around the world, including the UK, and would not affect store staff.

Explaining plans to make cost cuts at the time of its last financial report in September, Helena Helmersson, the chief executive of H&M, said the retailer had not been able to pass on the full impact of rising costs to shoppers. “In a situation of high inflation where household living costs are rising significantly, it is more important than ever to offer customers the best value for money,” she said.

In September, the company said sales in the early summer were weak in many of its major markets but later improved. The company is expected to reveal further tightening on sales and profits next month.

Fashion retailers anticipate a tough end to the year across Europe amid rising energy and food bills, which are diminishing households’ spare cash.

Overall spending on fashion was better than expected in the UK over the summer, as shoppers stocked up on holiday outfits and formal gear for a return to the office and for big events such as weddings after months of Covid restrictions.

However, spending on non-essentials is tightening through the autumn and winter now that energy bills have risen.

Clothing retailers are under particular pressure as unseasonably warm weather has hit sales of higher-priced coats, boots and knitwear, which provide a big chunk of annual profits. Retailers have also been forced to put up prices because of an increase in costs, further affecting volume of items shoppers are putting in their baskets.

The British fashion chain Joules called in administrators earlier this month putting 1,600 jobs and the future of the retailer’s 132 shops at risk after the online fast-fashion specialists Missguided and I Saw it First both went into administration over the summer before being bought out by Sports Direct owner Frasers Group. The cut-price chain Matalan also recently had to seek new funding.

Read more:
H&M to cut 1,500 jobs as retailers face slowing sales and rising costs

0
FacebookTwitterGoogle +Pinterest
previous post
Further UK rail strikes announced in run-up to Christmas
next post
Elon Musk’s satellites to be part of UK trial to get internet to remote areas

You may also like

For Mommy – Best Maternity Footwear: Why Expecting...

February 27, 2025

Building trust in a sceptical market: how to...

April 11, 2024

Third of public sector workers ready to resign

October 31, 2022

Close Brothers sets aside £165m amid car loan...

February 12, 2025

Jeremy Hunt announces plans to slash taxes

June 13, 2023

Facebook’s parent Meta prepares to slash thousands of...

November 7, 2022

UK wage growth rises at fastest pace in...

June 13, 2023

Price of medium sized eggs rising fastest

December 27, 2022

European gas prices likely to fall sharply this...

September 14, 2022

Why The Founder of Branzio Watches Mehtabjit Teja...

October 10, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Claim Trump nixed top Musk ally from NASA post over Dem donations belied by ex-Dems on team

      June 6, 2025
    • House Budget chairman explains why there’s no ‘pork’ in Trump tax bill after Elon Musk attacks

      June 6, 2025
    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025
    • Friday Feature: Incubate Debate

      June 6, 2025
    • Risch urges ‘top to bottom’ USAID spending review after waste, fraud exposed

      June 6, 2025
    • Universities in Libertarian Land

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,013)
    • Politics (15,547)
    • Stocks (3,131)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved