H&M to close Ximending flagship store at end of 2026

Taipei, July 3 (CNA) Swedish fast-fashion retailer H&M confirmed Friday that its flagship store in Taipei's Ximending shopping district, its largest outlet in Taiwan, will close at the end of 2026 when its lease expires.

H&M told CNA that the decision was made after discussions with the landlord as the lease nears its end, while stressing that it remains confident in Taiwan, which it described as an important and high-potential market in Greater China.

The company, which currently operates 14 stores in Taiwan, said it will continue to optimize its store portfolio and look for suitable new locations across the country.

The five-story Ximending store has been one of H&M's key locations in Taiwan. When it opened, it was billed as the brand's largest flagship store in Asia.

Market observers said changes in consumer spending and tourism patterns following the COVID-19 pandemic, along with rising rental costs, have affected the location strategies of international apparel brands.

H&M, however, said the closure was primarily due to the expiration of its lease.

H&M entered the Taiwan market in 2015 with its first store at Breeze Song Gao in Taipei. The company has expanded more cautiously in recent years, with its most recent Taiwan store opening on Zhongxiao East Road in Taipei in 2020.

Other international fast-fashion brands have continued to expand in Taiwan. Japanese retailers Uniqlo and Gu currently operate 72 and 27 stores, respectively, while Spain's Zara has seven stores and U.S.-based Gap operates 16.

Industry observers said international fast-fashion brands have shifted from rapid expansion to optimizing their store networks, placing greater emphasis on individual store performance, local consumer demographics and rental costs.