H & M (Hennes & Mauritz AB ), a Swedish multinational retail-clothing company with locations in 43 countries, is eyeing Ethiopia as the business looks to expand its global production hubs to Africa. (WSJ)
By JENS HANSEGARD And HEIDI VOGT
STOCKHOLM — Clothing retailer H&M Hennes & Mauritz AB is looking to Ethiopia as a new low-cost country in which it will produce clothing as it races to keep shelves stocked at a growing number of stores around the globe.
The Swedish clothing retailer 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 says large-scale production can 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.
Read more at The Wall Street Journal.
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