Fast fashion retailer H&M is accelerating a multi-year strategy to reduce its physical footprint in 2026 after announcing plans to close around 200 locations globally by 2025. The move is part of a broader strategy to optimize its store portfolio in response to evolving consumer demand. The company's strategy involves increasing sales productivity per square foot while reducing costs tied to excess inventory, staff, and markdown activity. In the first quarter of fiscal 2026, H.M reported a 1% year-over-year decline in net sales in local currencies, citing a 4% reduction in store count as a contributing factor. The rise of e-commerce, which now accounts for over 30% of the company's total sales, has led retailers to rethink the role of physical stores as part of an evolving consumer landscape.