Global fashion company H&M is accelerating its strategy across the U.S. and Latin American markets. In the United States, the brand has entered the online marketplace of department store Nordstrom for the first time, while simultaneously opening a store in Rio de Janeiro, Brazil. These moves underscore a clear effort to explore growth opportunities through both distribution channels and geographic expansion.
Summary
- H&M enters Nordstrom’s online marketplace in the U.S. for the first time
- Aims to reach new customer segments as an entry-level price brand
- Opens its first store in Rio de Janeiro, accelerating expansion in Latin America
- Strengthens both channel strategy and regional expansion amid declining U.S. sales
U.S. Market: A Shift Toward “Indirect Distribution” via Nordstrom
H&M has historically relied on its own e-commerce platform and physical retail network in the United States. However, the company has now entered an external retail marketplace for the first time, marking a notable shift in its distribution strategy. Nordstrom, known for its higher-end positioning, provides a new context in which H&M is introduced as an entry-level price brand.
On the marketplace, H&M offers a curated assortment across women’s, men’s, and kids’ categories, along with its sportswear line, H&M Move. The assortment is designed to reach new customer segments beyond the brand’s existing audience.
By adopting a marketplace model, H&M maintains control over inventory and fulfillment, while leveraging Nordstrom’s customer base and service infrastructure. Returns and customer service are handled by Nordstrom, while H&M fulfills orders through its own logistics network, creating a hybrid operational structure.
This move comes against the backdrop of slowing performance in the U.S. market. In 2025, H&M reported a decline in sales in the region, highlighting the need to diversify beyond its traditional direct-to-consumer channels.
Latin America: Expansion Anchored in Brazil
At the same time, H&M is accelerating its expansion in emerging markets. A key example is its first store in Rio de Janeiro, Brazil. Located in the RIOSUL shopping center, the approximately 1,400-square-meter store drew significant attention, with more than 450 customers lining up on opening day.
Daniel Ervér, CEO of H&M Group, commented: “Rio de Janeiro marks a key step in H&M’s expansion in Latin America and reinforces our commitment to growth in Brazil. We see strong potential in this vibrant market and are excited to continue this love story by liberating fashion for the many.”
The company entered the Brazilian market in 2025 with its first store in São Paulo, making the Rio opening a continuation of its broader strategy. Additional store openings are planned within 2026, further strengthening its presence in the country.
Dual Strategy: Channels in the U.S., Physical Retail in Growth Markets
These developments underscore H&M’s evolving approach to growth. In mature markets like the U.S., the company is expanding distribution through new channels such as marketplaces to reach untapped customers. In contrast, in emerging markets, physical retail remains central to brand-building and market penetration.
This dual-track strategy reflects a more localized and flexible approach, moving away from a one-size-fits-all global model. As H&M navigates shifting consumer behavior and competitive pressures, its ability to balance channel innovation with geographic expansion will be critical to its next phase of growth.
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