The count tells the story: from more than 500 stores at its China peak, H&M was down to roughly 158 by early 2026, after hundreds of ordinary street stores and old-mall locations shut. On February 21, 2026 the retreat reached its landmark: the 47,000-square-foot Causeway Bay flagship in Hong Kong closed. The company's own framing was strategic triage — cutting inefficient, high-rent, dated-image stores to fund 'brand fortresses': close small stores, open big ones, and turn the survivors into experience destinations.
In June 2026 the org chart followed the store count. H&M's global reorganization stripped Greater China of its regional business-unit status: from July 1 it became one of 26 independent sales markets under a new Continent Asia Pacific division, and the local team was cut by roughly a quarter — more than 40 people. Sister brand &Other Stories closed all its Beijing and Shanghai stores, COS's expansion stalled, and across the wider Asia, Africa and Australia region the store count fell year-on-year from 998 to 901.
Hangzhou shows what the new map looks like. Every store in the main urban area has closed — Hubin in77, Wulin Intime, Binjiang Baolong City, Chengxi Intime City — leaving one shop at Linping Intime City on the edge of the metro region. Asked about returning to central Hangzhou, H&M's customer service said there were no plans. Online, the brand now covers Tmall, JD.com, Douyin and Pinduoduo; the physical network is no longer where the reach comes from.
Closed hundreds of small stores to fund brand fortresses, cutting from 500+ to ~158, then Greater China lost regional status and became one of 26 markets.
Traffic moved online and to local brands, and hundreds of high-rent ordinary stores stopped paying — H&M itself called them inefficient.
The group chose concentration over coverage: 'close small, open big', trading network density for a handful of flagship fortresses.
After the closures, Greater China was no longer big enough to be its own region — one market of 26, with the team cut by a quarter.
A network built for the mall era cannot be defended store by store — H&M cut its way to fortresses and surrendered the streets. The downgrade followed the doors: first the stores go, then the region.
The new structure took effect on July 1, 2026: Greater China joined 26 independent sales markets under the Continent Asia Pacific division, with the local team reduced by roughly a quarter. H&M says it has no plans to reopen in central Hangzhou — one Linping store remains — while its online reach runs across Tmall, JD, Douyin and Pinduoduo.
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