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and diverse fashion interest for men/women/children, including cosmetics, accessories and home<br />

textiles. Some 140 in-house designers create its collections. H&M’s three biggest markets account<br />

for about one-third of the store count: Germany (406 stores), United States (269 stores), and<br />

United Kingdom (226 stores). The retailer distributes product through three channels: retail stores<br />

(full range outlets to small concepts), the Internet, and catalog sales. (Plans call for entering the<br />

US online market, called the biggest in the world, in the spring of 2013.<br />

EB Identities: H&M, LOG.G (men’s, women’s children’s apparel), H&M Sport (active lifestyles),<br />

H&M Young, H&M MAN (skin care for men), By H&M (make up, skin care, body care),<br />

H&M Home (home textile range), Our Perfect (basic underwear for women), Mama (pregnant<br />

women’s wear), BIB, COS (Collection of Style high priced apparel), Monki, Weekend, and Cheap<br />

Home.<br />

EB skus: N/A<br />

Profile: After a not-so-great fiscal 2011, when sales edged ahead by only 1.9% to SEK 128.8<br />

billion, H&M is back on track for 2012. Its gross profits jumped by 8.8% to SEK 71.9 billion,<br />

while some 339 new stores (including 23 franchised) were opened during the year. Another 35<br />

outlets (5 franchised) were closed. Plans for fiscal 2013 are ambitious: 325 new store openings,<br />

expanding aggressively deeper into China and the US market, while introducing its new fashion<br />

brand, & Other Stories, into 10 European countries. Additionally, the COS banner, covering 64<br />

outlets in 15 countries, will enter Oslo, Norway, and Dubai, UAE. In 2011, H&M joined with 60<br />

other brands (Macy’s and others) pledging to not knowingly use UZBEK cotton. The retailer is<br />

under pressure to cut its ties with South Korean-based Daewoo International and others who<br />

purchase cotton from Uzbekistan in Central Asia, where the government allegedly forces children<br />

and adults to harvest the white fiber for little to nothing in wages.<br />

Procurement Contacts: Madelein Persson<br />

HARRIS TEETER, INC.<br />

701 Crestdale Drive, Matthews, NC 28105 USA<br />

Tel: (704) 845-3100<br />

Fax: (704) 845-3112<br />

www.harristeeter.com<br />

Total Fiscal 2011 Sales: $4.3 Billion +7.1%<br />

Percentage of Sales in Exclusive Brands: 20%

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