Tuesday, September 26, 2023

H&M has a vision for the store of the future, and it’s more expensive than anything else we’ve seen from the brand


H&M’s vision for the store of the future is minimalist, curated, and pricey – everything that the original H&M is not.

Its new concept store, which was unveiled in November 2017 in one of its existing locations in Sweden, is the antithesis of a typical H&M store. Shoppers come in to shop its limited collection of clothing, have a coffee in the store, or even take a yoga class.

While this is currently the only H&M store of its kind, it’s telling of where the company believes retail is headed. It’s a very different direction from what we see in the rest of its often chaotic and cluttered fleet of stores.

Once the king of fast fashion, H&M has stumbled in recent years and lost out to more nimble online players such as ASOS and Boohoo, which have cut down supply-chain times and swooped in to poach customers. As a result, sales growth at H&M has slowed. It has also battled with a mountain of unsold inventory and seen its stock price slump.

One of H&M’s key areas of success has been its sister brands, specifically Cos, which is the second-largest brand in the company’s portfolio and is focused on better-quality but higher-cost clothing.

The overlap between Cos and its concept store is far greater than at its own H&M brand, signifying that Cos may have become the model for H&M stores of the future.

Take a look around H&M’s concept store below:

H&M’s concept store is located in the upmarket Karlaplan neighbourhood in Stockholm, Sweden.

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Experimental @hm store 🙌🏻 #hmukraine

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The store is tailored to the local shopper and carries a larger selection of its more expensive “Premium Quality” and “Trend” collections. The premium collection of clothing includes more expensive items such as cashmere sweaters and real leather jackets.

Source: Reuters

Inside, it looks significantly more luxurious than a typical H&M store.

The changing rooms are big and airy …

… and there is more emphasis on the interior design of the store.

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Världens finaste H&M butik. 🌱

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Rather than cramming in lots of racks of clothing, this location has a limited collection …

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H&M Concept Store 👌🏼🇸🇪#hm

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… which includes a homeware section.

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New and trendy HM in Fältöversten.👍🏼

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Its minimalist design looks a lot more like its higher-priced but better-quality sister store, Cos.

Business Insider/Jessica Tyler

Cos has become one of the more successful areas of H&M’s business. In a six-month report for the period from December 2016 to May 2017, H&M CEO Karl-Johan Persson said that Cos’ profitability is in line with H&M despite having 95% fewer stores.

“The concept is based on a feeling of home, inviting and welcoming, where you want to stay for a long time,” Open Studio, the trendy design company that created the space, wrote on its website.

“After talking to the customers, we’ve been wanting to create a warmer and more personal feeling,” Anna Tillberg, head of The Laboratory, H&M’s innovation think tank that is developing the new concept, told Reuters.

To encourage customers to spend more time in the store, it offers extra services, including a coffee area.

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Better start on this friday 👌 #steamery #breakfast

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It also stocks local brands.

According to Reuters, yoga classes and events are put on for loyalty club members.

H&M has been increasingly looking to diversify from its core brand and test out new concepts.

In April, it launched a new, millennial-focused brand called Nyden, which professes to be “affordable luxury.” This brand operates online and via pop-ups, rolling out a limited collection of clothing in small batches.


Business Insider

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