The fashion retailer H&M (HNNMY) is shutting down its brick and mortar stores to focus more on its digital business.
On Thursday, the company announced that it is shutting down 250 stores next year as more people are shopping online.
"More and more customers started shopping online during the pandemic, and they are making it clear that they value a convenient and inspiring experience in which stores and online interact and strengthen each other," H&M said in a statement. "We are increasing digital investments, accelerating store consolidation and making the channels further integrated."
Retailers shutting down stores due to the increase in online shopping, especially during this ongoing coronavirus pandemic is not a new news.
“We believe the actions we are taking to optimize the core operations of our business by increasing efficiencies and creating a frictionless digital ecosystem to serve our customers, wherever and whenever they choose to shop, are enabling us to navigate the COVID-19 environment while positioning us well for the launch of the next generation of consoles," GameStop's CEO German Shermon said in a statement.
As the ongoing pandemic is forcing people to buy online than in physical stores, big retailers like Amazon (AMZN) - Get Report, Target (TGT) - Get Report and Walmart (WMT) - Get Report are on a hiring spree as their online sales are expected to grow as the holiday season approaches.
“The holidays are always a special time, and this year, we think the season will mean even more to our customers. As more of them turn to online shopping, we want to ensure we’re staffed and ready to help deliver that special gift to their loved ones while continuing to fulfill our customer’s everyday needs,” Greg Smith, executive vice president for supply chain for Walmart U.S., said, in a statement.
Last month, Walmart said that it is hiring more than 20,000 seasonal associates in its e-commerce fulfillment centers across the country.