H&M Confirms Wave of Store Closures in Canary Islands as Part of Global Restructuring
Major high street fashion chain H&M has announced plans to close stores in the Canary Islands, specifically targeting popular holiday destinations Tenerife and Gran Canaria. This move is part of the company's ongoing restructuring programme, which has seen significant reductions in its global store network over recent years.
Global Store Closures and Network Reduction
Between January and September 2025 alone, H&M closed 135 stores worldwide. Looking at a broader timeframe, the company has shut down 975 stores across Europe, Asia, Oceania, and Africa over the past six years. This represents a substantial reduction of approximately 20% in its international network, decreasing from over 5,000 locations to 4,101 stores globally.
The restructuring efforts come as H&M faces increasing competition from Chinese digital platforms such as Shein and Temu, as well as pressure from low-cost retail giants like Primark. These market forces have prompted the fashion chain to reevaluate its physical store presence and adapt to changing consumer shopping habits.
Financial Performance Amid Restructuring
Despite the wave of store closures, H&M has demonstrated resilience in its financial performance. For the quarter ending in August, the company reported operating profits of £390 million, a significant increase from £280 million during the same period last year. Additionally, sales rose by 2% to £4.5 billion in the third quarter, even as the company operated fewer physical locations.
This financial growth suggests that H&M's restructuring strategy may be yielding positive results, with the company potentially benefiting from improved operational efficiency and a shift toward digital sales channels.
Broader Retail Context
The H&M closures occur within a challenging retail environment where other fashion brands are also facing difficulties. For instance, Quiz recently confirmed it would not honour gift cards after entering administration and cutting 109 jobs. While Quiz has closed its online store, customers can still purchase remaining stock with additional discounts.
H&M's presence in Birmingham remains unaffected by the Canary Islands closures, with local stores continuing to operate as normal. The company's restructuring appears focused on optimizing its international footprint rather than withdrawing from established markets.
As H&M continues to navigate the competitive retail landscape, industry observers will be watching how the balance between physical store reductions and digital growth evolves in coming quarters.
