What: H&M is enhancing its retail presence by incorporating new technologies and localising store assortments to better cater to specific communities.

Why it is important: This strategy aims to improve customer experience and competitiveness in a challenging market, particularly against fast-fashion rivals like Zara and Shein.

H&M is actively transforming its retail approach to become more consumer-centric and innovative. The Swedish retailer is investing significantly in its stores, particularly in New York City, where all 12 Manhattan locations will undergo major changes, including full rebuilds, refreshes, relocations, or new openings. This initiative is part of H&M's broader strategy to enhance the shopping experience through technology and localized assortments.

In response to flat sales and increased competition, H&M is focusing on improving its fashion offerings and retail environments. The company is also experimenting with pop-up stores to test new concepts. For instance, a pop-up boutique in Manhattan's NoLIta neighbourhood will feature a vintage archival collection and signature styles tailored for the local trend-setting crowd. This pop-up will also offer personalised essential oils, showcasing H&M's commitment to unique customer experiences.

H&M's expansion strategy includes opening new stores in key locations across the U.S. and internationally. The retailer plans to upgrade about 10% of its U.S. stores this year, with another 10% slated for upgrades next year. These upgrades will incorporate technology improvements such as RFID readers for stock transparency and handheld devices for faster checkout processes.

By empowering sales associates with technology, H&M aims to enhance human interaction in stores, offering personalised style advice and buying suggestions. This approach reflects H&M's confidence in the U.S. market and its commitment to elevating both in-store and online experiences.

H&M innovates with technology and localised assortments