H&M enters Central America through franchise deal with Hola Moda

Swedish fashion giant H&M has showcased its focus on international expansion with plans to enter the Central American market. Group CEO Karl-Johan Persson announced that H&M aims to open its first store in Panama at the end of 2020.

The new Panama store will be directed by privately owned company Hola Moda S.A as a result of H&M striking a franchise deal with the company. Hola Moda was founded by Phoenix Group and Dorben Group and operates international fashion brands in 15 countries across the region.

President of Hola Moda, Mehdi Beneddine said: "We are honoured and thrilled by the opportunity to bring H&M to Central America. This alliance is especially important for us, as it gives our team the opportunity to work together with H&M in promoting sustainability in our industry and region."

The Swedish retailer has exhibited a smart and tactful approach by choosing to partner with a local business that is accustomed to the retail market in Central America. H&M’s partnerships with Hola Moda can be seen as a result of many global retailers struggling to find their position in the American market either through swiftly existing this region or not making successful profit margins.

H&M currently has 50 online markets and stores in 73 markets.