H&M Logistics to close Belgian distribution centre, 440 jobs affected

H&M Logistics to close Belgian distribution centre, 440 jobs affected
Illustration picture shows the logo of H&M in Rue Neuve shopping street in Brussels, Saturday 18 February 2023. Credit: Belga / Nicolas Maeterlinck

H&M Logistics has announced plans to close its retail distribution centre in Ghlin, near Mons, which could lead to 440 job losses.

The decision follows a meeting of the company’s works council and reflects the challenges facing the fashion industry, including increased digitisation, changes in customer behaviour, and growing demand for multi-channel services.

H&M aims to improve product availability and optimise stock management in Southern Europe, which includes Belgium, Luxembourg, Spain, France, Italy, and Portugal. The company says this region currently suffers from significant overcapacity.

As part of this strategy, operations in Ghlin would be consolidated into two logistics centres located in Torrejón, Spain, and Casalpusterlengo, Italy.

H&M considers this step essential to remain competitive and ensure the long-term sustainability of its business.

The company has begun the information and consultation process required by Belgium’s Renault law, which governs collective redundancies.

H&M management has pledged to carefully examine all questions and alternatives put forward during the process, adopting a transparent and responsible approach.

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