Elche’s H&M shop closing

The Swedish retail chain H&M announced in 2024 that it would be reducing the number of stores and employment it has in Spain due to “organisational, productive, and economic” reasons. Around 50 layoffs were the result of the closure of stores in the L’Aljub retail centres in Elche, Ociopía in Orihuela, and Habaneras in Torrevieja, which had consequences for the province of Alicante.

Additionally, these were the sole instances in the Valencian Community that were impacted. The Torrevieja store was the first to shut its doors in May 2024 since that time. The Orihuela store was subsequently closed on September 14th of the same year. Currently, the Elche store has shuttered its doors. The facility was closed to the public on March 14th, following its final day of operation on March 11th. It will be entirely shut down on March 22nd. Approximately 20 employees are being laid off at this Elche store. It is the final establishment in the province of Alicante that will not reopen, and the circumstances of the dismissal were negotiated in October. The employees have departed the company with an agreement as a result of these negotiations, according to Yolanda de la Casa, the general secretary of the CCOO Services Federation in Alicante.

The dismissal terms that were established following the October negotiations were 45 days until 2012 and 33 days until the present. A gratuity of 3,500 euros was granted for the first five years, 4,000 euros for the next ten years, and a maximum of 4,500 euros for the subsequent years.

Furthermore, three relocations have occurred among the 50 individuals who were laid off in the province, spanning Elche, Orihuela, and Torrevieja. Lely Fernández of UGT l’Alacantí-La Marina informed this newspaper that these were part-time employees from the Habaneras shopping centre in Torrevieja who were transferred to the La Zenia shopping centre, which continues to operate and is accessible.

H&M initiated 2024 by announcing the closure of 28 stores and approximately 588 collective redundancies. The figure was reduced to 521 reductions in a subsequent revision.

The Torrevieja store closed its doors to the public on May 17th, 2024, and the lease expired on May 24th, never to be reopened. Nevertheless, numerous employees at this establishment were granted the opportunity to relocate to other nearby stores that were still operational. In September 2024, Ociopía followed suit, and Elche followed suit in March 2025.

The H&M group operates over 100 stores and employs nearly 4,000 individuals in the country. This decision was made by the Scandinavian company in order to “adapt and perfect” its stores in a “changing” shopping environment for its consumers. Additionally, Spain would be responsible for 17% of the brand’s global closures, as indicated by the data that the company disclosed months ago when it presented its 2023 financial year.