Global fashion retail brand, H&M, plans to close 350 stores worldwide as the global pandemic pushes more people to shop online.

Despite the clothing giant reporting a better than expected 3rd-quarter profit, total net profit has fallen by over 50%. The company also added that it will only be opening 100 new stores in 2021.

"The rapid changes in customer behaviour have been accelerated due to the pandemic. The H&M group is therefore now stepping up the pace of its transformation," the company said in its quarterly report. 

At present, revenue generated from online sales only represent a quarter of the company's total sales. However, digital revenue grew by 28% in the 3rd quarter of 2020, which is a staggering amount considering digital adoption has been slow previously.

In mid-April, H&M temporarily closed around 80 per cent of its stores worldwide. Today, only 3% of the company's 5000 shops (166 shops) still remain closed.

"Our recovery is going better than expected... With more full-price sales than expected and strict cost control, we returned to profit already in the third quarter," CEO Helena Helmersson said in a statement.