H&M to permanently close 8 Italian stores

Italy might be beginning to ease coronavirus lockdown restrictions, but even once stores are back in full force some will be gone with the wind, including eight H&M stores. The brand has announced that they will be permanently closing eight stores across Italy, including two in Milan, although these plans were in place prior to the economic fallout and shutdowns from coronavirus.

All of H&M's Italian shops were temporarily closed as Italy was on lockdown. Clothing retailers in Italy will be allowed to reopen beginning May 18 after several months of strict lockdown measures. Two Milan shops and a Bari shop will not be reopening, however. Later this year, H&M will also be closing shops in Udine, Vicenza, Bassano del Grappa, Gorizia and in the Tuscan town of Grosseto.

"The decision to close is linked to the economic sustainability of each specific store," a spokeswoman for H&M in Italy said in a statement to Reuters.

Prior to the economic impact of coronavirus, H&M was already having a tough time. Years of ballooning inventory from declining sales and declining profits have shaken the brand. The company has been revamping their business strategy to further invest in e-commerce and close stores in slower markets and open stores in more emerging markets.

The collective 200 employees who work between all of these stores can't be laid off under measures imposed by Italy's government as a result of coronavirus, so H&M will be working on finding them other positions within the company. H&M still has a total of 181 stores in Italy, and Europe is the brand's largest market.

photo: courtesy of H&M newsroom