STREAMING NOW: Watch Now

H&M hopes Alibaba can help it catch up online

H&M is betting big on China as it races to catch up to more nimble online competitors.The world's second large...

Posted: Jan 31, 2018 11:45 AM
Updated: Jan 31, 2018 11:45 AM

H&M is betting big on China as it races to catch up to more nimble online competitors.

The world's second largest fashion retailer acknowledged Wednesday that it's struggling to keep pace with evolving shopping habits that have depressed sales in its physical stores.

H&M shares dropped over 7% in Sweden after the company said that sales grew 4% in 2017, but profit after taxes slumped 13%.

CEO Karl-Johan Persson said in a statement that the fashion industry is "changing fast."

"At the heart of the transformation is digitalization, and it is driving the need to transform and rethink faster and faster," he said.

H&M currently has an online presence in 43 markets, but physical stores in 69.

The company is now hoping to make inroads in China, where it will launch a store on Tmall in March. Alibaba's retail platform is one of the biggest in Asia, with the potential to reach hundreds of millions of customers.

H&M said Wednesday that it also plans to open digital stores this year in India, Saudi Arabia and the United Arab Emirates.

Related: H&M apologizes for using black child to sell 'coolest monkey' top

"While H&M was once a pioneer it now looks like the company has failed to keep up," said Pedro Aguilar, an analyst at market research firm Euromonitor International.

He said younger, more agile fashion companies like ASOS and boohoo have managed to deliver a much better online customer experience.

Euromonitor data show that 16% of global apparel and footwear sales were generated online in 2017. In Asia Pacific, a key market for H&M, the figure was 21%.

Huntsville
Clear
72° wxIcon
Hi: 91° Lo: 68°
Feels Like: 72°
Florence
Clear
71° wxIcon
Hi: 93° Lo: 69°
Feels Like: 71°
Fayetteville
Clear
70° wxIcon
Hi: 90° Lo: 66°
Feels Like: 70°
Decatur
Clear
68° wxIcon
Hi: 91° Lo: 66°
Feels Like: 68°
Scottsboro
Overcast
72° wxIcon
Hi: 90° Lo: 68°
Feels Like: 72°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 91776

Reported Deaths: 1639
CountyConfirmedDeaths
Jefferson12186230
Mobile9269204
Montgomery6350148
Madison512227
Tuscaloosa400269
Baldwin332223
Shelby311932
Marshall300134
Unassigned287856
Lee255442
Morgan227015
Etowah196728
DeKalb172113
Elmore163337
Calhoun162713
Walker147964
Houston133412
Dallas129823
Russell12672
St. Clair125214
Limestone122713
Franklin121520
Cullman117112
Colbert112213
Lauderdale111113
Autauga103021
Escambia98115
Talladega94613
Jackson8904
Chambers83238
Tallapoosa82778
Dale79823
Butler75435
Blount7453
Chilton7386
Coffee7255
Covington71620
Pike6727
Barbour5645
Lowndes56124
Marion54724
Marengo52914
Clarke4919
Hale45926
Bullock44411
Winston43511
Perry4324
Wilcox41110
Monroe3964
Randolph39210
Bibb3844
Pickens3769
Conecuh37310
Sumter36018
Lawrence3251
Macon31613
Washington31512
Crenshaw3073
Choctaw27612
Cherokee2497
Greene24711
Henry2473
Geneva2430
Clay2255
Lamar2052
Fayette1785
Cleburne1211
Coosa952
Out of AL00

Tennessee Coronavirus Cases

Confirmed Cases: 114098

Reported Deaths: 1144
CountyConfirmedDeaths
Shelby21924298
Davidson19812208
Rutherford625453
Hamilton580347
Knox418638
Williamson336322
Sumner326471
Unassigned29285
Out of TN279314
Wilson215223
Montgomery178113
Bradley177112
Sevier17636
Putnam164613
Trousdale15766
Robertson147519
Hamblen131113
Blount11868
Tipton11379
Washington11142
Maury11077
Madison95714
Bedford89011
Sullivan85911
Macon84713
Hardeman84312
Lake7580
Loudon6863
Bledsoe6741
Fayette6468
Anderson6376
Dickson6301
Gibson6152
Dyer5797
Cheatham5546
Rhea5141
Jefferson5133
McMinn49820
Lawrence4976
Henderson4830
Obion4644
Warren4544
Carter4525
Coffee4482
Lauderdale4457
Hardin4267
Cocke4212
Haywood4145
Greene3986
Roane3982
Cumberland3976
Smith3933
Hawkins3915
Monroe3809
Giles36012
McNairy3355
Weakley3293
DeKalb3261
Franklin2964
Marshall2713
Lincoln2591
Carroll2513
Crockett2464
Hickman2400
Claiborne2350
White2323
Henry2310
Campbell2241
Wayne2222
Johnson2140
Marion2104
Chester2012
Grainger1810
Polk1813
Decatur1742
Overton1411
Unicoi1410
Union1330
Cannon1310
Humphreys1133
Benton1111
Jackson1091
Scott1050
Grundy1042
Meigs990
Sequatchie960
Morgan941
Perry770
Fentress760
Hancock761
Stewart720
Clay660
Lewis621
Houston540
Moore530
Van Buren330
Pickett271

Community Events