H&M to Shut Champs-Élysées Flagship in Paris

·2 min read

PARIS H&M plans to shut its Paris flagship on the Avenue des Champs-Élysées as part of an ongoing plan to adapt its retail network in the wake of the coronavirus pandemic.

The 30,000-square-foot store opened in October 2010 after a five-year legal battle with Paris City Hall, which opposed the arrival of fast-fashion brands on the famous avenue. News of the closure was first reported by French news agency AFP.

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Last year, the Swedish fast-fashion giant announced changes in its 5,000-strong retail network, with 350 stores closing and 100 opening in 2021. In a statement, H&M France did not give a timeline for the Champs-Élysées closure. It said it has started consultations with labor unions and plans to offer jobs at its other stores to the workers impacted.

“The H&M Group is currently going through a transformation on a global level where we continue to adapt to meet increased customer expectations and to ensure we have the right stores in the right locations,” it said.

Fashion retail in Paris continues to suffer from the compounded effects of a sector-wide structural crisis due to the rise of e-commerce, accentuated during the pandemic, and a lack of foot traffic, with tourists remaining largely absent and locals smart-working.

The news comes as staff at an H&M warehouse in Le Bourget, the retailer’s sole French logistics site, have been picketing to protest plans for the closure of this location, which would impact more than 150 jobs.

Last September, H&M announced a 158 percent year-on-year leap in profits for the third quarter, bringing the group’s net profit to 8.3 billion Swedish kronor, or $946.9 million, for the first nine months of the 2021 fiscal year.

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H&M Sees 158% Gain in Q3 Net Profits

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