Racism scandal at H&M shows all is not well
The Swedish clothing company advised to improve its communications and online presence as sales slip and it battles to lure shoppers
Stockholm — A racism scandal at H&M is the latest indication of management problems at the Swedish clothing giant, once the darling of shoppers but now struggling to make the switch to e-commerce, analysts say. The fashion group is one of Sweden’s largest export brands and industrial heavyweights, alongside Ikea, Spotify, Electrolux and Volvo. Owned by the Persson family dynasty, it has been listed on the Stockholm stock exchange since 1974. It has collaborated with superstars such as Beyoncé and Madonna, and prestigious fashion houses including Sonia Rykiel, Lanvin and Kenzo have designed exclusive collections for the group. H&M is one of the most well-known brands in the world, with global consultancy Interbrand ranking it the 23rd best known company worldwide in 2017 — ahead of Ikea and fashion luxury goods manufacturer Hermes. But lately, H&M has struggled to lure shoppers into its 4,553 stores around the world and has been slow to develop its online offering. "It’s [been] one o...
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