H&M Closes 136 Stores, Discontinues Monki Brand

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H&M closes 136 stores in six months, shuts Monki brand

The short version

H&M closed 136 stores in the past six months alone
The company has shut 644 stores since the end of 2022
Monki brand was fully discontinued by end of 2025 after a reversal of earlier closure plans
H&M Group now operates 4,038 stores, down from 4,702 in 2022

136

stores closed in past six months

644

total store closures since end of 2022

4,038

H&M Group stores operating in first half of 2026

decline in sales for first half of year

What happened

H&M has accelerated its store closure strategy, shutting 136 locations over the past six months as part of a broader restructuring that has eliminated 644 stores since the end of 2022. The Swedish retailer also fully discontinued its Monki brand by the end of 2025, having shut down most of its standalone stores and transitioned select locations to its Weekday brand. The company's total store count fell to 4,038 from 4,702 at the end of 2022.

Context

H&M has been shifting toward a smaller, more focused store footprint for several years. The closure of Monki represents a significant change in strategy—the brand was initially set for discontinuation before the decision was reversed in 2024, only to be fully shut down by year-end 2025. This contraction reflects broader pressure on physical retail as fashion consumption increasingly moves online.

Both sides

Bull

Store closures can improve operational efficiency, reduce overhead costs, and allow H&M to concentrate resources on higher-performing locations and digital channels.

Bear

Rapid store closures signal weakness in the fashion retailer's business model, and a 1% sales decline in the first half of 2026 suggests the strategy has not yet reversed revenue pressure.

In plain words

Imagine a store chain that's shrinking down because it's not making as much money as it used to. H&M closed hundreds of physical stores over the past few years and completely eliminated one of its brands (Monki) to focus on fewer, more profitable locations. It's like choosing to keep only your best customers and letting go of the ones that don't buy much.

What may happen

Stabilization path

H&M's smaller store base becomes more profitable, digital sales grow to offset closures, and the company reaches a new operational equilibrium with fewer but higher-performing locations.

scenario - not a prediction

Continued contraction

If sales continue declining and competition intensifies, H&M may need to close additional stores and exit additional brands, further reducing its physical footprint.

scenario - not a prediction

Strategic repositioning

H&M reallocates resources toward its strongest brands (H&M, Weekday) and expands concept stores or flagship locations in key markets rather than pursuing a broad network.

scenario - not a prediction