LONDON — Swedish fast fashion retailer H&M has signed a new lease to take back the spot that hosted its first China store for 15 years on the bustling Huaihai Road in Shanghai.
According to public filings from the property’s landlord Shanghai Yimin Commercial Group, the retailer has signed a new leasing agreement with H&M Hennes & Mauritz (Shanghai) Commercial Co. Ltd. for 25.5 million renminbi, or $3.48 million, a year between 2025 and 2029 for the six-floor building spanning 64,583 square feet at 645-649 Huaihai Road.
The annual rent will increase to 27.5 million renminbi, or $3.75 million, from 2030 to 2034.
The Huaihai Road location was H&M’s first and largest store in the mainland China market when it opened in 2007. The space has since remained vacant following H&M’s exit.
The store was shut during the COVID-19 pandemic and was reopened briefly after Shanghai eased lockdown measures. But consumer demand failed to bounce back, and the prolonged backlash against H&M after the Xinjiang cotton controversy sank the brand’s sales in the market.
However, the company has since reinforced its long-term commitment to the country and made great efforts to restore its standing in the local market.
Last year, H&M picked the Chinese fashion label Garçon by Garçon for its latest China collaboration. The decision was the result of the retailer’s in-depth partnership with Shanghai Fashion Week.
H&M said it hopes to “expand the fashion industry’s possibilities with local designers, bring more attention and support to China’s new generation of fashion talent, and meet the diverse needs of consumers through this collaboration.”
In addition to buzzy crossovers, the brand unveiled a China design hub in 2023 during the sixth edition of the China International Import Expo.
The hub is based in Shanghai and is headed by Andreas Lowenstam, former head of menswear at H&M, who has worked on a slew of high-profile launches for the brand. With a design team on the ground, the hub is tasked with developing styles for the Greater China region, which comprises around 300 stores.
At the same time, according to Saed El-Achkar, regional manager of Greater China at H&M, the retailer in the past year has expanded its online channels to include Douyin and Pinduoduo, while upgrading key retail locations in Beijing, Shenzhen, Shaoxing, and Shanghai, including the reopened flagship on Nanjing Road East.
H&M could not be reached for comment.
