& Mauritz AB( H & M), the Swedish multinational clothing retail company, known for its fast-fashion clothing for men, women, teenagers and children, has witnessed unprecedented growth to become the No. 2 largest fashion retailer in the world, second only to the formidable Inditex group, owners of the Zara brand. But it seems that the retailer has peaked and growth will now be a challenge, as the last year saw a piling amount of unsold inventory, worth US $ 4.3 billion.

Signs of slipping sales at H & M began emerging in 2017, when it reported an unexpected quarterly drop. The trend was reinforced when the retailer reported its largest annual profit drop in six years, declining 13 per cent in the 12 months leading up to November 2017. One of the first responses to the declining sales was an announcement to a slowdown in store openings. So, while in 2017, the company added 388 stores, it plans to open fewer stores in 2018. According to reports, H & M plans a net addition of about 320 stores in 2018; it will open about 390 stores and close about 170.

Foot traffic in the last one year fell for most fast-fashion retailers as

customers increasingly shunned crowded shopfloors in favour of online shopping, or lower-cost offerings elsewhere. Interestingly, H & M already has a significant online presence, with e-shopping available in around 33 countries, including Kuwait, and also India. Yet, it has not been able to retain the interest of the shopper.

This is perhaps because, while the shift from brick & mortar signals that consumers are increasingly shopping online, rather than in stores, it also indicates that consumers’ tastes are changing. Industry watchers are of the view that a growing number of shoppers are less interested in cheap, disposable clothing, and are more interested in higher quality and season-less pieces designed to last. This is the core reason why brands like Everlane and Cuyana, which encourage consumers to buy fewer but better things, are now growing fast.

By launching exclusive collections for designers like Karl Lagerfeld, Stella McCartney, Roberto Cavalli, the fashion brand did have a share of its favourable fashion collaborations. In 2016, H & M also released an annual holiday movie, directed by Wes Anderson and titled,‘ Come Together’,

A slow-motion wreck

Of late, analysts have been downbeat on the Swedish company’ s outlook. Rahul Sharma, Founder of Neev Capital, called H & M‘ A slowmotion wreck’ after the release of its first-quarter results. Analysts at the Swiss bank UBS said in a note to investors that they had come away from an H & M presentation,“ With no clear view on why focus on the core customer had been lost, and what was being done to fix it.”

which generated much interest in the brand. Nothing seemed to work, and as a last resort to the ongoing crisis, H & M relied on massive sales it put forward, but even that did not help as an escape strategy. The loss holds a bigger grip on the fashion-savvy retailer.

Of late, analysts have been downbeat on the Swedish company’ s outlook. Rahul Sharma, Founder of Neev Capital, called H & M‘ A slow-motion wreck’ after the release of its firstquarter results. Analysts at the Swiss bank UBS said in a note to investors that they had come away from an H & M presentation,“ With no clear view on why focus on the core customer had been lost, and what was being done to fix it.”

The recovery options for H & M, announced recently include the launch of a new outlet to sell external brands alongside its own ranges. Also, the retailer which has launched a number of high-end brands in recent years to broaden its customer base, said it would launch‘ Afound’ in 2018, offering budget products from external brands as well as its own labels. There will be a store in Stockholm as well as online sales. H & M is also