H&M Set to Close Two Manhattan Stores

H&M is closing two of its Manhattan stores by the beginning of next year, according to a layoff notice filed with the state’s Department of Labor.

As first reported on the blog East Side Feed, a total of 62 people employed by H&M will be out of a job by Jan. 19, 2026. The stores that will be affected are located on the Upper East Side and in Lower Manhattan, at 150 E. 86th St. and 18 Church St., respectively; they employ 31 people each.

The closures are unsurprising given that H&M has been paring down its portfolio recently, in what the company describes as a cost-saving measure. The department store chain has shuttered 135 of its stores across the globe this year, which has reportedly boosted its profit margins.

Notably, the company also engaged in a $104-million buyback of its own stock on Nov. 21, which it said would “distribute surplus liquidity and thereby adjust H&M’s capital structure.”

”Through a stronger customer offering, an improved gross margin, and good cost control, we have strengthened operating profit compared with the same quarter last year,” H&M CEO Daniel Ervér told The Independent in September.

For those who may have never set foot in an H&M, the Swedish-based retailer is known for its fast-fashion offerings, as well as some homeware items. It’s considered the second-largest international retailer of its kind, after the Spanish company Inditex (which owns the Zara fast-fashion chain), and will still maintain eight separate stores across Manhattan—even after the two closures in January.

The store on East 86th Street, which is located across from Old Navy, opened in 2008. As East Side Feed pointed out, it’s not necessarily considered the hottest store in town, as it maintains a measly “2 out of 5” stars on Yelp.

Straus News stopped by the store on the afternoon of Monday, Nov. 24, to measure local reaction to the news of its impending doom. Many shoppers were previously unaware.

One woman, who said she was in town from Spain, said she liked the store “very much.” As she described it, “You can have everything at H&M.”

Another shopper, who was making her way into the store, pointedly said that she doesn’t “use H&M that much.” However, she had one outstanding complaint: “Their doors are too heavy, I’ll tell you that.”

Claire, who was departing the store, seemed accepting of the news. She framed its closure as part of the ruthless commercial cycle of conducting business in New York, saying that “stores open and close . . . people move in and out.” There were a few brands that stood as exceptions to this rule, she added, such as Bloomingdale’s.

John, who pointed out that he had heard of the store’s closure from East Side Feed “last night,” noted that he was giving the store something of a first real look before it was gone.

John noted that an array of businesses were closing their stores, which had given people “no places to shop.” He observed that Madison Avenue was a rare holdout, and wondered whether record-high commercial rents were to blame.

Reached for comment, a spokesperson for H&M said that “reviewing our store portfolio” is something that the company has done since first opening.

”While physical stores will always remain important to us and something we continue to invest in, having the right stores in the right locations is vital to ensure our long-term and sustainable growth,” they added. “We are following our normal procedure of working with any affected store employees to place them in any available roles in neighboring stores.”