High street giant Hennes & Mauritz (H&M) is set to open between 15 to 25 new stores in Germany next year, with a focus on smaller towns.

According to CEO Rolf Eriksen, the Swedish retail chain is interested in opening outlets in towns of around 50,000 people.

The company has operated in Germany for 20 years and, with 239 outlets, holds a 3.5 per cent share of the country's total clothing market.

Eriksen said Germany remained H&M's "most important market".