The clothing chain H & amp; M’s profit for the second quarter increased by ten percent compared with the same period last year. It became clear today when the H & amp; M presented its quarterly report. And the online market is a possible recipe for continued expansion.
– There are very talented online competitors but we have a very good online shop that grows very well, as we expand and which is profitable. So we see that we are ourselves very well in the konkurresen, says H & amp; M’s CEO Karl-Johan Persson.
Internet trade is usually described as a major threat for the clothing industry. Competition is intensifying and it is easy to order clothes from foreign companies that might not even have physical stores. But H & amp; M is one of the companies also benefited from the net and this year opens the H & amp; M online stores in nine new countries.
The idea is that e-commerce and stores will be integrated, borders and blurring.
And perhaps This is a necessary survival strategy. According to a forecast from Swedbank to 40 percent of all retail sales in Sweden have moved online in just ten years.
But the expansion of physical stores are still important for H & amp; M, says CEO Karl-Johan Persson. This year alone add 400 new stores opened.
– We see that there is a very great potential, it’s a very good quality of the stores we open up, it’s good location, good contracts and good profitability the stores we open, he said.
Meanwhile, The stronger dollar continue to affect H & amp; M negatively. For stronger dollar means higher purchasing prices and it could ultimately lead to more expensive clothing in the stores. Although it is not something that H & amp; M planning for right now.
– But then we will of course obviously follow the competition and how they act, but the starting point is that the customer will receive a fantastic offer and we will continue , says Karl-Johan Persson.
H & amp; M’s sales in the second quarter increased by 20 percent in Swedish kronor, and profit by 10 percent compared with the same period last year. Despite the fall, H & amp; M’s shares on the Stockholm Stock Exchange by more than two percent.
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