Swedish retailer H&M is launching a refreshed strategy for the Middle East, sharpening its focus on the region’s competitive and trend-driven market. The company is overhauling its store layouts, digital platforms, and product assortments to better connect with younger shoppers across the UAE and Saudi Arabia. This new phase builds on an almost two-decade partnership with Alshaya, which H&M’s CEO, Daniel Ervér, credits with providing essential insight into regional customer needs.
“We see this as an area with a lot of growth potential with the customer with a high demand, where we really need to show up at our best,” Ervér said, confirming the region is now a priority market for the group.
A New In-Store Experience
A clear sign of H&M’s new direction is the recently reopened flagship store in Dubai Mall, which features one of the most immersive concepts in the brand’s global portfolio. The space is designed as an experience-led destination rather than a traditional retail floor. It includes interactive fitting rooms, a customisation station, a photo booth, and curated trend zones that encourage exploration.
The store also introduces an expanded beauty section that incorporates a selection of regional brands. This move aligns with H&M’s plan to convert its Middle Eastern flagships into discovery-driven spaces that meet the expectations of a young, style-conscious consumer base.
Integrating Local and Regional Brands
The Dubai Mall relaunch marks the first time H&M has integrated such an extensive mix of local beauty labels into a flagship store. The selection includes By Mina Al Sheikhly, Noha Nabil Beauty, By Haneen Al Saify, Barkha Beauty, Murad, and Light Salon. This initiative is designed to increase loyalty among GCC shoppers who value home-grown brands alongside international names.
Ervér confirmed that H&M is already working on localised beauty collaborations and is considering fashion partnerships with regional designers. “H&M should be a brand which welcomes everyone,” he stated.
Digital Upgrades and Technology
Alongside physical store upgrades, H&M has overhauled its digital presence in the GCC with a redesigned app and website. The next step involves fitting stores across the region with RFID technology that tracks every item in real time. Ervér explained, “We also know where in the store it is, so we can use the devices to navigate to exactly the position.”
While staff currently use this feature, the company is exploring how to make it available to customers through the app. Pilot stores in Europe already allow shoppers to locate an item with one-metre precision, and the UAE is expected to be one of the first markets to receive the public rollout.
Product Strategy and Localisation
Product relevance remains the cornerstone of the strategy. With younger shoppers shaping buying behaviour across the UAE and Saudi Arabia, where major industrial partnerships are also strengthening, H&M’s 500 in-house designers are working to align collections with cultural shifts and youth trends.
Seasonal capsules, such as the Ramadan collection, and climate-specific adaptations are becoming more prominent as the brand refines its local assortment planning. Value also remains central to H&M’s positioning. “It should always be outstanding value for money,” Ervér said, noting that prices reflect quality and longevity rather than just trend cycles, a key consideration in a city focused on providing affordable options for residents.
With a clear focus on improving design, upgrading stores, and embedding local relevance into its collections, H&M’s strategic shift in the GCC is well underway. As Ervér concluded, “More things to come.”
