Geographic Expansion Through Test Markets

“Stefan Persson takes a different role during the establishment. While Erling Persson is on site once a month, Stefan Persson visits Germany at most once a quarter, when the German manager Edgar Rosenberg has interesting new store locations to show in the major cities. At this time, Stefan Persson focuses on finding the best store locations and then he puts all his energy into negotiating with property owners who are not familiar with H&M before. They have big dragons to fight, Dutch C&A and department stores like Karlstadt and Kaufhof. When the CEO of H&M himself comes down to negotiate a new store, it gives a completely different weight. Erling Persson makes his spontaneous visits, and combines them with sauna bathing. Stefan Persson always has an agenda.”

“The US launch has given the company’s staff a boost in confidence. Less than a week later, the first store in Spain opens. Over the following years, Stefan Persson cuts ribbons at new H&M stores in countries including Poland, Portugal, and the Czech Republic. H&M now sells more than five hundred garments per minute worldwide. And Stefan Persson has fulfilled his promise of reaching America.”