Archive · 16 Jun 2025
H&M Uses AI to Modernize Stores, Facing Online Competition
H&M is trying to improve how it sells clothes by combining its online and in-store experiences using artificial intelligence (AI).
They are closing some stores but upgrading others in key cities.
Online retailers like Shein are becoming very popular, so H&M is using AI to understand what customers want and manage its inventory better.
They use AI to predict trends, manage supply chains, and improve customer experiences, hoping to stay competitive in the fast fashion industry.
H&M is using AI to integrate its digital and physical operations.
The company is optimizing its store network, closing some and refurbishing others.
H&M's market share decreased, while Shein's rapidly increased.
AI is used for supply chain, pricing, marketing, and consumer data analysis.
H&M aims to enhance customer experience by using AI across all channels.
- Who
- H&M and its Chief Digital Information Officer, Ellen Svanstrom, plus competitors like Shein and Zara.
- What
- H&M is using AI to improve its business and customer experience.
- When
- H&M has been using predictive AI for several years, and is exploring more applications now.
- Where
- Globally across its stores and online channels.
- Why
- To compete with online rivals, improve customer experience, and react to fashion trends.
H&M's Strategy
Online Rivals
Channel Focus
H&M's Strategy
Focus on blending digital and physical shopping experiences.
Online Rivals
Increasing competition from online-only retailers such as Shein.
- Company
- H&M
- Industry
- Fast Fashion
- AI Focus
- Integrating digital and physical operations
- Market Share Decline
- 1.2% in 2019 to 1.1% in 2024
- Store Count (approx.)
- 4,200 as of Feb 2024
- Key Executive
- Ellen Svanstrom