H&M plans to expand its first Home Store

H&M CEO Karl-Johan Persson said in an interview with WWD that the company will likely open its first Home Store.

Next year, H&M will open stores in South Korea and Israel, and plans to open a new flagship store on the Champs-Elysees in Paris. The company also plans to expand its English sales network business.

Despite the company's sales decline, the status quo is lower than the company's own goals and market expectations, H&M's operations have maintained profitability in recent months. Karl-Johan Persson believes that due to the warmer weather, it affected the sales of outerwear and winter clothing.

In October, sales of H&M's existing stores fell by 3%. The company believes that weak sales in the United States, Spain, and France eventually led to a drop in total sales. The sales in Central Europe and Asia are satisfactory.

Karl-Johan Persson said that H&M aims to increase the number of new stores by 10% to 15% every year, while increasing the same-store sales of existing stores. Most of the company's growth comes from the continued expansion of its core brands and core markets, namely the European and North American markets, as well as emerging markets namely Japan, Russia and China.

H&M has opened 240 new stores this year, more than the estimated 225. Karl-Johan Persson said: "We are very happy to see the company's development and will continue to expand aggressively next year."