H&M closes Belgian distribution center in favour of Italy and Spain

H&M is closing its distribution center in Ghlin, putting 440 jobs are at risk. The Swedish fashion giant is restructuring its logistics network in Southern Europe, where the group is struggling with overcapacity due to a changing retail climate.

Overcapacity

H&M announced today that it intends to cease operations at the Belgian logistics hub. Operations will be transferred to existing centers in Torrejón (Spain) and Casalpusterlengo (Italy). According to H&M, this step is necessary to “remain competitive in a demanding market and ensure the long-term sustainability of operations.”

According to the group, internal analyses show that the current logistics network in Southern Europe – which serves Belgium, Luxembourg, Spain, France, Italy, and Portugal – has become too extensive. By consolidating capacity, H&M aims to improve product availability while reducing operating costs.

The announcement comes as a blow to the 440 employees in Ghlin. In the coming weeks, the company will start the statutory information and consultation phase with the works council. H&M promises that alternative proposals will be thoroughly investigated.