Fast Fashion giant H&M plans to expand operations by adding 175 new stores to its network in 2019. Most of these stores will open in growth markets, while its number of stores in Europe is expected to reduce by 50. The brand also plans to create fast, efficient flexible product flow in the supply chain by including initiatives within advanced data analytics and AI. It will invest in various technology platforms and create new digital markets.

The first quarter results of H&M giant exceeded expectations on both profit and margin. The global retailer’s pre-tax profit was noted to be 1.04 billion Swedish crowns (A$157.58 billion) for the quarter spanning December 1, 2018 to February 28, 2019. This was well ahead of $708 million expected by the analysts. The brand’s gross margin increased 49.9 per cent to 50.0 per cent. Sales improved in many of its online and offline markets, including Sweden which grew by 11 per cent, the UK by 8 per cent, Poland by 15 per cent, China by 16 per cent and India by 42 per cent in local currencies.

H&M has been trying to improve its online offering by launching e-commerce sites in new markets, integrating digital and physical stores and providing faster delivery options. The retailer will also launch an upgraded loyalty programme shortly.