H&M: Increasing logistics locally

https://www.hm.com/

https://www.hm.com/

The Central and Eastern Europe Ecommerce Regional Report analyses the diverse countries within Central and Eastern Europe from an ecommerce perspective, from customer behaviours, through to the largest 100 retailers.

Today, we look at global fashion retailer H&M and how it fits into the B2C landscape in question.

H&M, a leading retailer in RXUK Top500research, operates across many of the countries in Central and Eastern Europe, with ecommerce sites localised for 11 of the 13 countries included in the Central and Eastern Europe Ecommerce Regional Report. Only Switzerland and North Macedonia aren’t covered by localised sites, although the company plans to launch in the latter part of 2022.

Many of H&M’s localised sites in the region launched in 2015 and have since grown to become leading online stores in many countries including Hungary, Slovenia, Bulgaria, Croatia, Slovakia and Austria.

Today, H&M, has almost 500 bricks-and-mortar stores in the region, including 87 in Austria, 98 in Switzerland, 57 in Romania, 52 in Czechia and 47 in Hungary. Net sales in 2020 accounted for €1.3bn of the company’s overall total of €18.24bn. Global fashion retailer H&M operates across many of the countries in Central and Eastern Europe, with ecommerce sites localised for 11 of the 13 countries included in this report. Only Switzerland and North Macedonia aren’t covered by localised sites, although the company plans to launch in the latter part of 2022.

Online sales continued to grow across the region throughout 2021, helping H&M Group to global net sales of €13.86bn for the first nine months of the year. This represents an increase of 13% over the same period of 2020.

This growth has lead to the retailer needing to expand its logistics capability in Eastern Europe. Currently, online orders for customers in Poland, Czechia, Hungary, Bulgaria and Slovakia are picked, packed and despatched from a single warehouse in Stryków, Poland. Working with long-term partner Arvato Supply Chain Solutions, H&M is expanding the size of this facility from 40,000 to 55,000m.

When completed in April 2022, the distribution centre will have a total storage area of 75,000m2 across two levels, including a mezzanine and high-bay warehouse. The conveyor system will run to a total length of over 3.5km and include automated processes that include sorter systems, self-propelled industrial trucks, dynamic warehouse replenishment and a SAP S4/HANA ERP system.

This huge increase in space and automation will result in annual outbound capacity increasing by around 30%, creating faster process flows for logistics across the entire region.

“Speed and flexibility in the supply chain are important and this extension will contribute to strengthen our customer promise offering,” says Michael Schulz, Regional Logistics Manager East Europe at the H&M Group.

“With a partner like Arvato Supply Chain Solutions, we are basically well positioned to meet the requirements of our growing East European customer base in the future as well.”

This article was originally published in the Central and Eastern Europe Ecommerce Regional report. For further retailer case studies, market-leading analysis and industry insight into this B2C market, download the full report here.

Read More

argos.co.uk
Operations and Logistics
29 Apr 2022

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