H&M plans to increase its discounted offerings in the second half of this year in an effort to gain back customers from competitors like Zara owner Inditex and Shein.
H&M Plans to Offer More Discounts
According to Reuters, the Swedish retailer has prioritized profitability over sales volumes in the past year, aiming for a 10% operating margin. However, this strategy has resulted in a loss of market share.
In March, H&M announced a shift in focus toward boosting sales to stay competitive. On Thursday, the company said that external factors such as material costs and currency fluctuations complicate its margin goal for this year, necessitating a stronger emphasis on sales growth.
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Target of H&M
H&M CEO Daniel Erver emphasized the importance of improving sales in the remaining two quarters, noting that failing to do so in the third quarter would make reaching their target difficult.
Hence, H&M plans to entice customers with more discounts, offering summer dresses for as low as $9.99 and jeans starting at $19.99.
Erver further noted that while giving discounts is a key strategy to attract customers, creating exciting collections, experiences, and events is also crucial. H&M aims to rejuvenate customers' interest by combining these approaches.
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