H&M Signals Renewed Commitment to German Retail Amidst Calls for Level Playing Field
Sweden’s retail giant H&M is reversing course on its German expansion strategy, signaling a renewed commitment to brick-and-mortar stores after a period of closures. Oldouz Mirzaie, Head of Central Europe, confirmed to Focus magazine that the company is actively seeking new locations across Germany, aiming to reduce the distance any consumer needs to travel to reach an H&M store to within 15 minutes. Currently, H&M operates 361 stores within Germany and the company views the nation as its most crucial market.
This strategic pivot arrives as part of a broader debate surrounding the competitive landscape of online retail and the impact of increasingly popular, often budget-focused, international platforms. H&M’s commitment to physical retail stands in contrast to the dominant trend of online-first development seen within the fashion industry. The company has also invested heavily in modernizing existing stores, with 70 undergoing renovations this year alone – 32 of which involved significant redesigns.
Mirzaie’s comments also carried a pointed critique of current regulations governing online trade, emphasizing the need for “equal and fair conditions in the market for all players”. She highlighted the importance of ensuring that all products sold within the EU adhere to consistent legal frameworks.
The statement directly addresses the ongoing debate within the European Union regarding the elimination of the de minimis import threshold – the current limit on customs duties for small packages entering the EU from outside countries. This measure is intended to curtail the influx of inexpensive goods, frequently failing to meet EU standards, originating from platforms such as Temu and Shein. Mirzaie welcomed the proposed change, stating the swift implementation is crucial to address the overwhelming volume of packages – estimated at approximately 400,000 daily in Germany alone. This move showcases H&M’s position within the increasingly complex and politically charged realm of international commerce and highlights a concern that unregulated international competitors pose a risk to established European retail businesses.