HM In Trouble For His Inventory

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

Right now most stores have amazing specials just in time to buy what we need for this summer season. Zara, Anthropologie, Asos, Forever 21 and other more popular stores have fabulous discounts of up to more than 50%. Most of these companies do these downgrades in order to get rid of old inventory and thus bring in pieces from the new season. However, H&M may have the biggest sale in its history and not precisely because it has a new collection to offer right now.

It turns out that the Swedish store chain has an inventory of clothing valued at a year, "Adam Cochrane, a Citi analyst, told CNN. "It is feasible to lower prices on merchandise, but that comes together with putting the reputation of the brand at risk. [The executives] want to prevent customers from seeing H&M as a discount company."

And it is that for H&M 2018 has not been their best year. The inventory of unsold clothing increased 13% and to improve its position, the company seeks to sell some of its shares to investors in markets where there is no store presence and also to lower the clothing so that they have more outlet.

"The first half of the year has been, let's say, a little challenging," the company's CEO Karl-Johan Persson said in a statement. "But we believe there is a gradual improvement and that we will have a stronger second half [of the year]."

H&M also assured that if it does not sell all the clothes it has, it will donate or recycle it. Let's hope that the problems don't continue and that like other big chain stores like Sears, they don't have to go bankrupt.