Sunday, January 24, 2021

Retail apocalypse continues as H&M announces closure of 250 stores, focusing on online sales

As cities stay locked down due to COVID or open with major restrictions, major clothing retailer H&M has decided to close about 250 stores in the U.S.

The pandemic forced H&M to temporarily shutter about 80 percent of its shops earlier in the year and continued to hammer its business in its fiscal third quarter, which runs from June through August.

Sales: The chain said its net sales dropped 19 percent to 50.8 billion Swedish krona, or about $5.7 billion, during the three-month period and remained 5 percent below last year’s levels in September even though most stores have reopened.

Brick & Mortar retail apocalypse: BDO announced a report that U.S. American retailers have announced plans to close a record 10,226.

Online sales for the company however: Saw a 27 percent surge in online sales over the course of the quarter. The Stockholm-based company reported a quarterly pre-tax profit of about 2.4 billion krona (roughly $265.7 million), which beat estimates of about 2 billion krona despite falling from roughly 5 billion krona in the year-earlier period.

H&M CEO Helena Helmersson said: “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.”

Munch More

Treasury Secretary Steve Mnuchin said on "Fox News Sunday" that the White House will propose topping supplemental joblessness protection in the following boost bundle to supplant 70% of people's lost wages. Republicans are against broadening the $600-per-week supplemental advantages remembered for the CARES Act went in March, contending that it disincentives Americans to come back to work on the grounds that numerous individuals got more cash-flow on joblessness than they did in their earlier activity. Those advantages set to lapse on July 31. "We need to have something which pays individuals about 70% compensation substitution, which I believe is a reasonable level. So it is anything but a fixed number. It's something that pays you a level of your wages that are lost." The opposite side: House Speaker Nancy Pelosi has said Democrats won't acknowledge a transient augmentation of joblessness help and that she underpins keeping up the $600-per-week benefits in the...
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What President Trump said today about trade relations with China and second trade deal with the country: “I don’t think about that. The relationship with China has been severely damaged.”

Trump’s made his comments to reporters aboard Air Force One on his way to Florida for a fundraiser and a visit to a military base.

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What happened: Payrolls rose by 4.8 million in June after an upwardly revised 2.7 million gain in the prior month, according to a Labor Department report Thursday. The unemployment rate fell for a second month, by 2.2 percentage points to 11.1%, still far above the pre-pandemic half-century low of 3.5%.

A separate report from the Labor Department showed initial applications for unemployment insurance in regular state programs fell by less than expected, to 1.43 million, in the week ended June 27. Continuing claims — or claims for ongoing unemployment benefits in state programs — rose slightly to 19.3 million in the week ended June 20.

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What’s happening: French cosmetics company L’Oreal said Saturday that it will remove words like “whitening” from its skincare products, a move that comes amid global protests against perceived racism, sparked by the death of George Floyd in the United States.

In a brief statement, the company said: “We have decided to remove the words white/whitening, fair/fairness, light/lightening from all its skin evening products.”

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