Giant clothing retailer H&M, Hennes & Mauritz announced today they are opening their first USA online store this according to a company press release. HM.com will be the home of their new online shopping presence. H&M is one of the world’s largest clothing retailers. “We are thrilled to launch online shopping in the U.S.,” says Daniel Kulle, U.S. President for H&M. “This significant milestone fully rounds out H&M’s multichannel offering. Along with close to 300 stores, our U.S. customers will now have twenty four hour access to the best of our fashion and home collections via their computers, smartphones and tablets anywhere in the U.S.”
I am sure their stock will get a boost from this new business development. Quite frankly I am surprised that it has taken them this long to open an online shop got their massive collection of trendy clothing that sells at bargain prices. We always teach our StartingAClothingLine.com clients that developing and ecommerce presence for their clothing line is absolutely essential. A lot of money is loss when you don’t sell your own clothing from your own website. Clothing lines that just depend on the wholesale market aren’t fully protecting themselves from fluctuations in the market. However in H&M’s case, at least they have their own physical stores so they still were making full price on their merchandise without a middle man.
The H&M new online store will also provide higher profit margins for them. The cost to operate a store online is significantly less than operating in each physical store they have. For one, there is no rent to pay at many of the malls they operate in. This move will also expand their client base as more people have access to online shopping. Let’s see how this works out for them as they report their earnings from the online unit next quarter. I’ll head over to H&M later to check it out.
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Article by Michael Harper. Story posted by John Thomas.