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November 30, 2021

H&M Group to bolster Eastern Europe supply chain

Swedish fashion retailer H&M Group is to expand its distribution centre in Stryków, Poland, in a bid to further strengthen its supply chain in Eastern Europe. 

By Beth Wright

H&M is extending its partnership with Arvato Supply Chain Solutions on the move which the latter says is necessary in order to further strengthen a flexible capacity structure with fast process flows within Eastern Europe.

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The two partners, who have been working together in Poland since 2018, are extending their cooperation in Poland by several years. Warehouse size will be expanded from 40,000 to 55,000 sq m by April 2022, increasing annual outbound capacity by around 30%.

Currently, online customers in Poland, the Czech Republic, Hungary, Bulgaria, and Slovakia are supplied out of Stryków.

The contract extension also marks the start of expansions at the Stryków distribution centre, scheduled for completion in around six months. The facility will have a total storage area of 75,000 sq m on two levels, with further construction to follow with the completion of a high-bay warehouse and expansion of a conveyor system to more than 3.5 kilometres.

The conveyor is part of the infrastructure needed to offer automated processes in e-commerce logistics, which also includes special sorter systems, self-propelled industrial trucks, dynamic warehouse replenishment, and the modern ERP system SAP S4/HANA, Arvato Supply Chain Solutions explains.

“Speed and flexibility in the supply chain are important and this extension will contribute to strengthen our customer promise offering,” says Michael Schulz, regional logistics manager East Europe at the H&M Group. “With a partner like Arvato Supply Chain Solutions, we are basically well positioned to meet the requirements of our growing East European customer base in the future as well.”

Earlier this summer, Swedish second-hand platform Sellpy partnered with H&M Group’s global supply chain unit in Poland as part of a bid to be closer to consumers in the bloc.

H&M Group began its strategic partnership with Sellpy in 2015 through the company’s investment arm H&M CO: LAB with the vision to empower consumers to live in a more circular way and keep fashion in use for as long as possible. The group took a majority stake in the re-commerce business in April 2019.

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Free Report
img

Stay ahead of the European apparel market

After witnessing a dip of 21.2% in 2020, the European apparel market has seen a significant growth of 22.7% in 2021. This comes as, despite lockdowns and social restrictions in the first half of the year, mass vaccination drives meant consumers returned to their workplaces and began reattending social occasions in the latter, putting money back into apparel. However, increasing inflation and costs of living in 2022 are severely affecting consumers’ discretionary incomes. It is now crucial for European brands to understand how shopping habits are changing in order to stay ahead of their competitors. The Apparel Market & Forecasts in Europe to 2025 report will help you:
  • Explore how different subsectors and countries are performing within the European apparel market, and which offer the most growth potential
  • Understand how European consumers' shopping behaviors have changed post-COVID-19
  • Find out which retailers are making the most gains, and what they are doing to remain competitive
  • Gain insight into the key trends affecting the European apparel market
Download this report now to get ahead of your competition and formulate winning business strategies.
by GlobalData
Enter your details here to receive your free Report.

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