Fashion chain H&M has warned of plans to axe more than 175 stores this year as part of restructuring plans across Europe.
The family owned business, which employs more than 132,000 people worldwide, said a number of branches will be closed in the coming months - while 200 new stores will open internationally.
In a market report on Thursday, bosses said around 200 new openings are planned for 2020, mainly in growth markets, while at the same time consolidation will continue with around 175 planned store closures.
The net addition of new stores for 2020 is expected to be around 25, while the first H&M store is planned to open in Panama at the end of the year.
A statement said the company is focusing on optimising its store portfolio, which includes rent renegotiations, closures and rebuilds.
Most of the store openings will be in South America, Russia, Eastern Europe and Asia - meaning the UK is unlikely to welcome any new branches.
However it said the closures will take place mainly in Europe, the US and China - which includes the UK.
"The H&M group’s transformation work continues to bear fruit. Increased full-price sales and decreased markdowns contributed to an improvement in profit for the full year and in the fourth quarter, when we achieved a 25 percent increase in operating profit while maintaining a high level of activity in our transformation work," H&M chief executive, Karl-Johan Persson, said.
"It is clear from our well-received collections and increased market share that customers appreciate the initiatives we have taken.
"The composition and level of the stock-in-trade continue to improve, and we expect a decrease in markdowns again in the first quarter – for the sixth successive quarter."
H&M shares surged on Thursday morning after the company announced a hierarchal reshuffle that will see chief executive Karl-Johan Persson replace the role of his father, Stefan Persson.
As the news was announced, shares soared more than 9%.
It means a windfall of around £1.1billion for the Persson family, which currently own 47% of H&M.
Stefan Persson's father, Erling Persson, founded H&M in 1947, laying the foundations for what would become the world's second largest fashion business, after Zara-owner Inditex.
