H&M India’s half yearly sales rises 19 per cent

H&M’s sales in India in first six months ending May rose 19 per cent. The Swedish fashion retailer has 32 stores in India. The plan is to add 50 more by 2020. Each store generates on an average Rs 33 crores in annual sales. H&M went into the second quarter carrying a lot of stock and still has some imbalances which are being corrected gradually.

Globally, H&M has been struggling with billions of unsold inventory and flat sales growth which in turn has led to higher markdowns and profit squeeze. The retailer stocks fast fashion items created in-house and teams up with designers for one-time collections. It keeps a large inventory of basic, everyday items sourced from India and Bangladesh that carry a lower price tag than most of its rivals.

As the world’s second most-populated country, India is an attractive destination for US and European brands and has attracted some of the world’s largest private labels that are banking on young consumers increasingly embracing western-style clothing.