H&M Extends Shutdown in Mexico, Reopens in WuhanBy Daniel González | Tue, 05/05/2020 - 16:41
On April 1, Swedish fashion giant H&M announced that it would close all its stores in Mexico until April 30 to help stop the spread of COVID-19. The measure, which the company had previously implemented at its stores in other markets around the world, matched that of other retail giants with presence in Mexico like El Palacio de Hierro, Sears, Inditex and Liverpool. However, at the beginning of April the situation in Mexico was completely different from the current one. Today, Mexico appears in all international projections as one of the countries that will have more difficulties not only to control the virus but to contain the possibility of a second outbreak. For this reason, H&M has decided to extend the closure of all stores in the country until May 30, as announced by the company on its social networks.
This measure contrasts another decision made by H&M a few days ago. Almost at the same time as it decided to extend the closure in Mexico, the company decided to reopen its stores in Wuhan, China, the epicenter of COVID-19 and the first city in the world to decree mandatory confinement for its population. After a promising start in sales results in 2020, these have been gradually falling, according to The Global Fashion Business Journal. H&M was forced to apply for a bank loan to enable the company to survive the crisis according to the Fashion Network. The loan was set with BNP Paribas, Danske Bank, Standard Chartered Bank and Commerzbank for a value of €980 million (US$1.06 billion).
J Crew, one of the most famous clothing stores in the US has ventured on a rough path. The company has been forced to file for voluntary bankruptcy in order to gain time to restructure its operations, a measure that has forced the closure of all its stores in the US and around the world.
C&A, on the other hand, has decided to go digital. In April, the Dutch company decided to open a store in the Mercado Libre platform and after much success in a short period of time, it has introduced to the Mexican market its own e-commerce platform. “A few weeks ago, we announced that Mercado Libre would be our official store. The result of this effort has resulted in our new online store,” said C&A in a press release. C&A has 79 stores in Mexico.