Popular Swedish Retailer H&M Looks to Source Clothing From Ethiopia

by zemen

Source: Wall Street Journal

Retailer Hopes African Country Will Help Keep Shelves Stocked

STOCKHOLM—H&M Hennes & Mauritz AB HM-B.SK -1.63% is looking to Ethiopia as a new low-cost country in which it will produce clothing, as the apparel retailer races to keep shelves stocked at a growing number of stores world-wide.

The Swedish company relies heavily on Bangladesh for clothes production, and a move to Africa would expand its sourcing footprint but not replace its commitment to production in Asia. One supplier says H&M is looking to source one million garments a month from Ethiopia.


A spokeswoman said the fashion company has placed test orders with Ethiopian suppliers and that large-scale production could begin as early as this fall. H&M is adding stores in a number of markets, a move needed to help offset stagnant same-store sales in some regions.

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