& M has updated how it manages inventory, turning to data and analytics to ensure stores carry what local shoppers actually want. By tapping into regional sales figures, live demand signals and trend forecasts, the retailer now fine-tunes stock levels to match real-world buying behaviour.

AI shapes decisions on where products go and when, with the aim of preventing both overstock and stockouts – the twin challenges that plague fast-fashion chains. With better balance, each H & M store becomes more responsive, carrying stock that reflects its unique customer base. This keeps things moving and supports the chain’ s agile approach to fashion.

Daniel Erver, the retailer’ s CEO, told Reuters in January:“ H & M’ s improved operating profit margin in the fourth quarter [ of 2024 ] was partially attributable to a better product assortment.”

He adds that tweaks to design and supply timelines may“ reduce the timeline from product conception to in-store availability by up to 50 %”. Though H & M reports a slight dip in turnover ratio in 2025, the broader picture shows inventory flowing faster and more efficiently. Distribution centres are working smarter and logistics is running more smoothly – meaning inventory meets demand with less delay, less waste and stronger margins.

192 November 2025