In a bold move to reclaim its position as a fashion leader, H&M has reopened its flagship store in Dubai Mall, targeting the Gen-Z demographic in the Middle East. The Swedish retailer, caught between premium brands like Zara and budget competitors such as Shein, is betting on its physical stores to differentiate itself. The newly revamped store features interactive fitting rooms, self-checkout systems, and a curated selection of beauty brands like By Mina Al Sheikhly and NYX, designed to appeal to younger consumers. To mark the occasion, H&M turned the Burj Khalifa red and offered exclusive gifts to the first 300 guests, including mystery boxes with gift cards and beauty bags. This strategy aligns with H&M’s global initiative to transform 250 stores into boutique-like spaces, emphasizing open layouts and modern aesthetics. Despite the rise of e-commerce, H&M’s focus on in-store experiences reflects a broader trend of consumers valuing physical retail. The move also highlights the growing competition in the Middle East’s fast fashion market, with Primark set to open three UAE stores next year. However, the absence of a strong local fashion player leaves the door open for H&M to solidify its presence in the region.
UAE: H&M bets on physical shops to win over Gen-Z in Middle East as Dubai Mall store re-opens
