H&M has announced plans to close approximately 160 stores worldwide by 2026. This decision stems from structural shifts in the fast fashion market and declining performance, particularly a roughly 10% year-over-year sales drop in the first quarter. The company is making a major strategic shift away from its traditional brick-and-mortar network, reducing underperforming locations while significantly increasing investment in online sales (e-commerce). Going forward, H&M will retain only strategically located larger stores and transition to a digital-first sales model. This transformation is driven by the rise of low-price, high-speed e-commerce-only brands like Shein, the strong competition from rivals such as Zara, and a broader shift in consumer behavior from physical stores to online shopping. Additionally, as part of broader cost-cutting and restructuring efforts, H&M is reviewing staffing and store operations across multiple markets, impacting several regions including Italy. As a result, H&M is entering a pivotal phase of fundamentally transforming its business model from store-centric to digital-centric.