By analyzing purchases and returns in a more granular way, H&M discovered that the store's customer base was primarily women, and that fashionable items like floral skirts in pastel colors and higher-priced items sold better than the retailer expected. Sales at the store, have improved significantly.


H&M is breaking from its past practice of stocking its stores with similar merchandise, which resulted in repeatedly cutting prices to clear out some $4 billion of unsold product. Last year, H&M cut the number of pieces in inventory in the stores by 40%, and eliminated most menswear products. In its place, crockery was added, as well as $118 leather bags and $107 cashmere sweaters alongside $6 T-shirts and $12 shorts.