H&M has revealed that it will move towards using its 5,000-strong store network as logistical hubs for online stock, as the company looks to boost its digital growth.

According to the Financial Times, the Swedish fashion giant will reshape its physical store strategy to reflect the growing demand for online shopping.

Last week, the business announced a management shakeup which will see Karl-Johan Persson, who has been chief executive since 2009, take over the role of chairman from his father Stefan Persson.

The Financial Times quoted Persson junior as saying: “We think the role of the stores will change, how can we use those stores even better as logistical hubs for deliveries, for pick-ups, for returns?”

H&M also announced that it would close 175 stores across Europe this year, including in the UK, while it opens a net figure of 25 new stores around the world; beginning with a new store in Panama and focussed mainly in emerging markets.

The multichannel retailing shift was also referenced by Helena Helmersson, the first female chief executive of the company.

“It is one of the things that will be super exciting to understand going forward: how we see stores today with digital growth moving faster, we have a fantastic advantage in terms of our physical store network; it is what we do with it,” the FT reported her as saying.

Announcing his plans to step down as group chairman after 20 years in the role, Persson senior commented: “In recent years, we have made substantial and necessary investments in our joint group infrastructure - mostly in logistics, tech, data and AI - investments that now are starting to pay off in terms of increased customer satisfaction, sales and profits.”

Stefan Persson is the son of Erling Persson, who founded H&M in 1947. He took over the company from his father in 1982 and served as chief executive until 1998, when he became chairman.

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