Last month, H&M announced they would not report monthly sales results anymore and report seasonal or quarterly results instead. The brand has had sales increases for years, however, sales are now declining. Zara is already the most popular mall brand, but other brands are in competition with H&M as well. So, which mall brand will replace H&M?
Last month, H&M announced they would no longer report monthly sales results and report seasonal or quartet results instead. Analysts said the brand might not be as popular as before and that is shows the brand’s sales and profits are declining.
H&M released a statement saying, “a month is far too short a period over which to assess how sales are developing.” The brand, which is the second largest clothing retailer in the world with Zara’s parent company Inditex being the first, has published monthly sales results for over 10 years.
A fund manager also released a statement saying, “this shows how frustrated they are that the market has lost confidence in the company. The fundamental problem is not monthly data, it’s the company’s weak development. Monthly data was not a problem when the company performed well. Why should it be now?”
Zara has become and has been the most popular mall brand for a while. The brand’s products are of much better quality and is more like something you’d see from a luxury brand. The brand is one of the few brands that reports sales increases each quarter.
The brand also stocks new items every week. It releases new collections months before new seasons even start as well. The brand, however, doesn’t overstock.
Items often sell out quickly at Zara. Some items might be discounted after a while but the brand never has any sales. The only sale Zara has is when a new collection is released. All the products from the old collection go on sale and sell out quickly.
H&M, however, overstocks its items and as to have a lot of sales in order to sell them. Items don’t sell out as quickly as they do at Zara. Items can be available for over a year before they sell out.
The brand had been one of the few mall brands that people still shopped at. It did well online and in stores. Sales at the brand, however, are declining and if they keep declining the brand might just start closing stores or cutting jobs.
If the brand becomes unpopular and no one buys their products anymore they’ll start shopping at other stores. They won’t shop only at Zara and Forever 21 is the only other mall brand people still shop at. Even though sales have been declining at the brand, Forever 21 may replace H&M if it becomes unpopular or goes out of business.
So, what do you think? Which mall brand will replace H&M? Let me know in the comments below. Also, don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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