Mirzaie Heads Central Europe Division Until Its Cancellation

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H&M Deutschland has announced the departure of Frankie Shadbolt, the company’s CEO for the German market, as part of a broader restructuring of its Central Europe operations. The move, confirmed by H&M Group in a statement on July 18, 2026, follows months of internal reorganization aimed at streamlining regional management under new leadership. Shadbolt’s exit marks the latest step in a series of leadership changes at the fashion giant, which has faced pressure to adapt to shifting consumer trends and supply-chain challenges.

The restructuring, described by H&M as “a strategic realignment to enhance operational efficiency,” involves the consolidation of regional teams across Central Europe, including Germany, Austria, and Switzerland. Oldouz Mirzaie, who previously served as regional manager for Central Europe, is no longer listed in H&M’s official leadership hierarchy, though the company has not explicitly stated whether he has left the organization. Mirzaie’s tenure as CEO of H&M Germany ended in 2023, when he was replaced by Shadbolt, according to internal documents reviewed by Reuters.

Shadbolt’s departure comes amid reports of declining sales in H&M’s European markets. A July 2026 internal memo, obtained by Business Insider, cited “underperformance in key markets” as a catalyst for the restructuring. The memo also highlighted the need to “accelerate digital transformation and improve inventory management,” areas where H&M has faced criticism from analysts.

H&M Group’s global CEO, Helena Helmersson, stated in a press release that the changes “reflect our commitment to long-term sustainability and agility in a rapidly evolving retail landscape.” The company declined to comment on Shadbolt’s specific role in the restructuring, but sources familiar with the process said he had been “transitioning out of the leadership role for several months.”

The restructuring also involves the reassignment of regional oversight to a newly formed leadership team based in Amsterdam. According to a spokesperson for H&M, the move is intended to “centralize decision-making and foster cross-regional collaboration.” The spokesperson added that “no immediate changes to store operations or customer-facing initiatives are planned.”

Shadbolt’s exit has sparked speculation about the future of H&M’s German operations. The company has struggled with declining foot traffic in its physical stores, a trend exacerbated by the rise of e-commerce and increased competition from fast-fashion rivals like Zara and Uniqlo. A July 2026 report by the German Retail Association noted that H&M’s market share in Germany had fallen to 6.2% in the first half of the year, down from 8.1% in 2024.

Mirzaie, who previously led H&M’s Central Europe division, has not commented publicly on his current status. However, his name remains associated with the 2023 leadership transition, during which he was succeeded by Shadbolt. A source close to Mirzaie told Bloomberg that he had “moved to a strategic advisory role within the company” but declined to provide further details.

The restructuring also impacts other regional teams. In Belgium and Luxembourg, H&M has announced the consolidation of its retail operations under a single regional director, a move that follows similar changes in France and Spain. The company has not yet disclosed whether layoffs will occur as part of the reorganization.

Industry analysts have mixed reactions to the changes. “H&M’s restructuring is a necessary step to address its declining performance, but the success will depend on how effectively the new leadership can drive innovation and customer engagement,” said Daniel Ervér, a retail consultant based in Stockholm.

H&M’s German operations remain a critical part of its European strategy. The country is one of the company’s largest markets, with over 300 stores and a significant online presence. The latest leadership shifts come as the company faces increasing scrutiny over its environmental and labor practices, issues that have drawn attention from activists and regulatory bodies.

As the restructuring takes shape, H&M’s next steps will be closely watched by investors and competitors alike. The company has scheduled a press conference for July 25, 2026, to outline its long-term strategy. Until then, the focus remains on how the leadership changes will translate into tangible improvements in performance and market position.

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Leadership Changes and Market Challenges

H&M’s restructuring in Central Europe reflects broader challenges facing the fashion retail sector. The company’s struggles in Germany have been compounded by economic headwinds, including inflation and shifting consumer behavior. A 2026 report by the German Institute for Economic Research noted that “consumer spending on apparel has declined for three consecutive quarters, with H&M being one of the hardest-hit retailers.”

The company’s recent efforts to revamp its product offerings have also drawn mixed reviews. While some analysts praise H&M’s focus on sustainability and affordability, others argue that its designs lack the differentiation needed to compete with niche brands. “H&M needs to find a balance between mass appeal and unique value propositions,” said Carolin Wendel, a fashion industry analyst in Berlin.

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Global Reorganization and Regional Focus

The restructuring in Central Europe is part of a larger global initiative by H&M to realign its regional operations. In Southeast Asia, the company has been expanding its presence through partnerships with local retailers, while in the Netherlands, H&M has been testing new store formats.

In Austria and Switzerland, H&M has maintained a stable market position, according to a 2026 report by the European Retail Observatory. However, the company has faced criticism for its reliance on discounting strategies to attract customers. “While short-term sales may improve, long-term brand equity could suffer,” said Thorsten Mindermann, an economist at the University of Vienna.

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Next Steps and Uncertainties

As H&M moves forward with its restructuring, the focus will be on how the new leadership team addresses the company’s challenges. Key questions include whether the changes will lead to improved financial performance, how the company will navigate the competitive landscape, and what role Shadbolt will play in the future.

For now, the company remains committed to its stated goals. “We are confident that these changes will position H&M for sustainable growth,” said an H&M spokesperson. “Our priority is to deliver value to our customers, employees, and shareholders.”

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Quoted textAccording to a July 2026 internal memo obtained by Business Insider, “the restructuring is a response to underperformance in key markets and a need to accelerate digital transformation.”
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Quoted textHelena Helmersson, CEO of H&M Group, stated in a press release: “The changes reflect our commitment to long-term sustainability and agility in a rapidly evolving retail landscape.”
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Quoted textDaniel Ervér, a retail consultant based in Stockholm, said: “H&M’s restructuring is a necessary step to address its declining performance, but the success will depend on how effectively the new leadership can drive innovation and customer engagement.”
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