Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Birmingham Post
Birmingham Post
Business
Jon Robinson

'Pressure on' H&M to compete with Primark and Boohoo as it cuts 1,500 jobs

The "pressure is on" H&M to compete with the likes of Primark and Boohoo as the cost of living crisis hits customer shopping habits, an investment expert has said.

Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, added that the chain needs to react to shoppers showing signs of trading down and hunting out bargains.

The warning comes as fashion giant H&M revealed plans to cut 1,500 jobs across its stores worldwide.

READ MORE: Click here to sign up to the BusinessLive North West newsletter

The Sweden-based company said the move is part of a "global programme to reduce costs and further improve efficiency in the business".

The restructuring programme is designed to help make savings of two billion Swedish Krona (£158.2m) each year, from the second half of 2023.

H&M said the cuts are expected to cost the firm 800 million Swedish krona (£63.3m) this quarter.

The retailer, which also owns the Cos and Monki brands, employs around 155,000 people globally and runs 4,700 stores.

Chief executive Helena Helmersson said: "The cost and efficiency programme that we have initiated involves reviewing our organisation, and we are very mindful of the fact that colleagues will be affected by this.

"We will support our colleagues in finding the best possible solution for their next step."

Susannah Streeter of Hargreaves Lansdown added: "Keeping the lights and heating on in vast stores is becoming increasingly unaffordable with energy prices so volatile.

"With shoppers also becoming impressively price-sensitive as cost-of-living headwinds continue to whip up, retailers are finding it more difficult to pass on increases in input costs.

"Shoppers are showing signs of trading down and hunting out bargains, so the pressure is on H&M to compete with chains seen as offering greater value, from Primark in high streets to Boohoo and Shein online."

READ MORE:

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.