H&M expects the first quarter of this year to be very challenging. Even though the prices of some products were increased,this did not cover all the losses. A dynamic pricing strategy has been followed.
Instead of passing on the full cost to customers, H&M chose to strengthen its market position first. In anticipation of losses due to soaring production and distribution costs, the fashion brand will continue to raise prices in several categories at various rates.In line with this, several strategies have also been implemented, especially in dealing with the threat of recession and geopolitical conflicts such as between Russia and Ukraine. H&M quickly decided to stop sales in the affected countries and then stop business in Russia and Belarus, in anticipation of even greater losses. The decision to stop doing business in Russia, which is an important and profitable market, has had a significant negative impact on the company’s results.
Meanwhile H&M has decided to close all its stores in England. Changes in fashion trends and customer behavior have forced the brand, which has been around for almost 66 years, to reorganize its business plan. During September 2022 to November 2022, H&M's turnover in the country was very thin due to soaring production and distribution costs.