H&M Signals Renewed Retail Expansion in Germany Amidst Calls for Level Playing Field
Sweden’s retail giant H&M is reversing course on its previous downsizing strategy in Germany, announcing plans to open new stores across the country in the coming years. Oldouz Mirzaie, Head of Central Europe, confirmed to Focus magazine that the era of closures is over, with the company currently operating 361 locations nationwide and actively seeking opportunities for expansion.
While H&M previously consolidated its presence, citing shifting consumer habits and the rise of online retail, the company remains steadfast in its belief in the enduring importance of brick-and-mortar stores. Mirzaie emphasized the company’s ongoing investment in its physical locations, highlighting the modernization of 70 stores this year alone, with 32 undergoing significant renovations. The stated goal is to ensure that German consumers reside no more than a fifteen-minute journey from the nearest H&M store.
The move comes at a time of significant political and economic debate surrounding the regulation of online retail and the impact of increasingly popular, ultra-fast fashion brands such as Temu and Shein, which often circumvent EU standards and regulations. Mirzaie has publicly advocated for a “level playing field” for all market participants, calling for standardized rules and legal frameworks to govern all products sold within the EU.
Her remarks are particularly timely given the European Commission’s ongoing deliberations regarding the abolition of the de minimis threshold for parcel imports. This move, intended to curtail the influx of cheaper, often non-compliant goods from outside the EU, has garnered cautious support from H&M. Mirzaie stressed the urgency of the initiative, noting the substantial volume – approximately 400,000 parcels daily in Germany alone – currently entering the country under the existing threshold. The policy shift is viewed as a critical step in protecting European businesses and ensuring a more equitable competition landscape, but also raises questions about potential impacts on consumer pricing and access to affordable goods. While H&M’s renewed commitment to German retail signals a vote of confidence in the market, its simultaneous call for regulatory action highlights the complex interplay between commercial strategy and political pressure within the evolving retail environment.
