Fast-fashion giant H&M is to close its high-profile store at Westfield Bondi Junction in Sydney’s eastern suburbs, unable to agree on lease terms with owner Scentre Group.
H&M country manager Thomas Coellner said in a statement that the decision was made following a global review of sustainable store operations.
“At H&M, we continuously review our store portfolio and assess all rent negotiations in order to future-proof the business. Unfortunately, we have been unable to come to an agreement with Scentre Group and will therefore close our H&M Westfield Bondi Junction store in July 2021.”
The 1800sqm store opened on August 27, 2016, and at the time was the brand’s sixth store in NSW.
Inside Retail reached out to Scentre Group for a response, but a spokesman said the company “does not comment on individual commercial arrangements with our retail partners”.
Staff of the Bondi Junction store will be relocated to other stores within the group and Coellner made it clear that the company remained committed to brick-and-mortar format despite a strengthening online focus globally.
“Regardless of this closure, our physical stores remain incredibly important to us. H&M Australia is continuing to grow and strengthen our portfolio,” he said.
H&M launched in Australia in 2014 and currently has 37 physical stores. It launched an online store here last October.