New Delhi, Nov. 26 -- The fast fashion giant is reshaping its retail strategy by shuttering stores in established markets and integrating Monki into its Weekday brand as sustainability concerns and shifting consumer habits reshape the industry.

The fast-fashion sector is entering one of its most disruptive cycles in a decade, as the H&M Group prepares to shut down nearly 200 stores worldwide and retire its Monki brand entirely from physical retail. The sweeping overhaul marks one of the most aggressive restructurings undertaken by a global apparel house at a moment when the global fast-fashion landscape is shifting under the weight of rising competition, inflation, and rapid changes in consumer shopping patterns.

The company said the cl...