H&M is set to close a further two stores in Rockhampton and Townsville, after the closure of its Chatswood store in January.
According to News.com.au, a spokesperson for the company said that the closures form part of a review of the brand's global store network.
"While we acknowledge the impact this will have on our colleagues as well as local communities, we see these store consolidations as vital in ensuring the long-term growth of the company," she told News.
"Regardless of these closures, our physical stores remain incredibly important to us," the spokesperson said.
The closures follow the launch of H&M's local online store, which launched in October.
COVID-19 may have fuelled the move, with H&M Group's net sales decreasing by 18% in local currencies in 2020.
"The H&M group started the year strongly and with a positive momentum until the first wave of COVID-19 had an impact," the business said in its report.
"Extensive social restrictions involving temporary store closures and large drops in customer footfall to physical stores led to a substantial decrease in sales, particularly in the second quarter," H&M said.
The closure of H&M's Townsville and Rockhampton stores come as other high-profile retailers including Mosaic Group and Accent Group close stores to adapt to the "seismic shift" that happened in retail during the pandemic.