Get ready to shop: H&M just got even cheaper
H&M’s poorly planned expansion efforts have led to an overstock of inventory, and it’s slashing prices to clear out the extra clothes.
Good news for clearance lovers: H&M has been expanding too far, too fast, and it now has a bunch of extra inventory. You can currently find crazy good deals, like jeans under $15 or tops and dresses under $5, both on the H&M website and in stores.
Although the company had been toying with the idea of an online outlet store to clear its inventory, it seems for the moment it’s decided to just slash its prices instead. You’ll be able to snag some great deals shopping right from the H&M website.
H&M has faced challenges keeping up with e-commerce trends and competing with other fast fashion companies like Boohoo and ASOS. H&M is struggling to keep up with the online experience brands like these provide, and it’s hurting business.
It’s also behind the times in its production techniques. While other fast fashion companies have started producing clothes closer to home to keep up with the trends more quickly, H&M still largely manufactures its apparel in Asia. As a consequence, the brand tends to always be just a few steps behind lately, which has led to an excess of inventory.
And it’s not a small excess: According to H&M’s latest financial report, it currently has more than $4 billion of unsold inventory to clear, so you can expect to see lots of items going on sale in the coming weeks. H&M will need to make considerable concessions to improve its profit margins, and quickly — they’re down 61% compared to this quarter last year.
In this case, the company’s misery is our joy. We can’t wait to stock up on adorable basics and cute, quirky pieces with prices slashed so unbelievably low. It’s not clear when the price cuts will end, but we’d hazard a guess you’ll be finding some sweet discounts for at least a few more weeks.