Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDaniel KlineMon, June 29, 2026 at 3:28 AM GMT+2 7 min readThe problem with fashion is that it's fickle and people's tastes change, demand for items can fall quickly, and yesterday's success story can easily become tomorrow's struggling brand.Even long-time retailers like The Gap have periods where they're hot and others where they're on the wrong side of current trends. Fast fashion, was supposed to be somewhat immune to that because of the changed nature of its merchandise cycle."With a focus on ultra-low prices and condensed production cycles, fast fashion gets new styles to customers at a record pace — and creates sizable environmental and social challenges," according to McKinsey and Company's What is Fast Fashion.In theory, a retailer like H&M can stay on top of current trends and move away from declining ones quickly.What the retail giant did not account for, however, was cheaper digital rivals that have lower costs, so they can charge less, while also being able to move even fast."Fast fashion retailers have consolidated their position in the American market: retailers such as Shein and Temu are now the primary online fashion marketplaces in the United States — fast or otherwise," according to McKinsey's The State of Fashion 2025.H&M has closed more than 600 stores since 2022, with 136 closing over the past six months. In addition, the chain has shut down most standalone stores for its Monki brand while transitioning select locations to its Weekday brand.While it has also opened a number of locations, H&M Group closed 2022 with 4,702 stores and completed the first half of 2026 with 4,038, a loss of 644 locations. The chain has finished every year in that time period with fewer locations than it had the year before."At the beginning of the second quarter there were 163 fewer stores than at the same point in time last year and at the end of the quarter there were 128 fewer stores than at the same point in time last year," H&M shared in its six-month earnings report.The company also closed down the Monki brand, folding some of its products into the Weekday brand."The comparison with the previous year is affected by the closure of all Monki stores in 2025. At the beginning of the second quarter last year there were 43 Monki stores, with 32 remaining at the end of the quarter," the retailer shared.Although sales decreased by 1% in the first six months of the year, profitability improved, and CEO Daniel Ervér said the company was on track to complete its goals."Sales in the quarter were somewhat lower than planned, while profitability and the stock-in-trade situation developed well. The profitability improvement and increased inventoryproductivity are in line with our long-term work to lay the foundations for sustainable and profitable growth," he wrote in a letter inside the earnings report.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info