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  • June 2013 (Revised March 2014)
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Hennes & Mauritz, 2012

By: John R. Wells and Galen Danskin
  • Format:Print
  • | Language:English
  • | Pages:26 
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Abstract

In 2012, Hennes & Maurtiz (H&M) was the second-largest specialty apparel retailer in the world. Sales for fiscal 2012 were $18.1 billion and operating profits were $3.3 billion. H&M operated 2,776 stores, 93% of them outside its home base of Sweden. Over the past decade, H&M had passed Gap in sales, but the company had failed to keep up with Inditex's growth and its Spanish rival had larger sales and greater profitability than H&M. H&M had also lagged behind Inditex in supply pipeline speed, brand diversification, online retail presence, and expansion into China. Meanwhile, the world's leading hypermarket chains, including Wal-Mart and Tesco, were making significant headway in apparel and challenge H&M's basic clothing segment.
In 2012, CEO Karl-Johan Persson, grandson of the company's founder Erling Persson, promised increased expansion into underdeveloped markets, a stronger push to online retailing, and the launch of a major new retail brand. Whether Persson's plans were enough to catch up with Inditex remained to be seen.

Keywords

Fashion; Fashion Industry; Strategic Decision Making; Strategy; Strategy; Supply Chain; Competitive Strategy; Corporate Strategy; Fashion Industry; Europe; Sweden

Citation

Wells, John R., and Galen Danskin. "Hennes & Mauritz, 2012." Harvard Business School Case 713-512, June 2013. (Revised March 2014.)
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About The Author

John R. Wells

Strategy
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    • June 2013 (Revised March 2014)
    • Faculty Research

    Hennes & Mauritz, 2012

    By: John R. Wells and Galen Danskin
Related Work
  • Hennes & Mauritz, 2012 By: John R. Wells and Galen Danskin
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