A trade union source told Paperjam about the closures, with three of the group’s 16 outlets in Luxembourg affected. The H&M in Mersch’s Topaze shopping centre already closed its doors on 25 August while the one in Esch-sur-Alzette’s city centre is set to close at the end of January 2022.
Arket at the Cloche d’Or will close in September. It was the only point of sale of the H&M group’s brand, specialising in eco-responsible ready-to-wear fashion with a coffee shop in the store.
Only the shop in the Belval Plaza shopping centre will remain in southern Luxembourg. H&M is focusing on shopping centre locations, as the H&M on the Grand-Rue in Luxembourg City will eventually be the only outlet of the group's flagship brand on a shopping street.
At least four redundancies
"The OGBL has negotiated support for the four people who were made redundant, mainly managers, as the sales staff were able to be reallocated to other stores of the group," David Angel of the OGBL explained to Paperjam. The union said that it wants to avoid further redundancies.
Last December, staff staged a protest picket following the reduction of the end-of-year bonus of 250 employees of the H&M group in Luxembourg. In the summer of 2020, it had already closed the H&M shop on Avenue de la Gare, following the failure of a lease renegotiation.
By the end of January, the H&M group will have 13 shops in Luxembourg, divided between H&M (7 outlets), COS (2 outlets), Weekday (1 outlet), H&M Home (2 outlets) and &Other Stories (1 outlet).
The group, which is listed on the Stockholm Stock Exchange, saw its revenues rebound by 75% between March and May worldwide, according to its latest financial results.