Global retail giant H&M is engaged in a balancing act. The chain already has some 1,500 stores in 28 countries, and plans to open more. Meanwhile, it hopes to maintain its status as the Swedish collosus with a conscience. Proof of this can be found in its detailed policies on corporate social responsibility.

The standards H&M requires of its suppliers would confound even the cynics who see CSR as a covert form of marketing. But then H&M is a company that likes to surprise, as shown by its response to the competition cut-price Primark and Peacocks posed to its 134 UK stores. Last year H&M unveiled COS (Collection of Style), a new chain providing the look of Jil Sander for less. The COS customer's teenage daughter can now get dressed at the funky Divided, another new chain that has its first branch in Camden.

Scandinavian innovation is also evident in the H&M stores. The disarrayed displays that always used to dismay me have given way to an almost unnerving order. In the cavernous expanse of the new flagship store on Regent Street, I almost felt a nostalgia for the mishmash of yore, when finding the perfect piece was proof not only of taste, but also of endurance.

On my first Chain Reaction visit to H&M's Kensington High Street shop, my purchases had to be unearthed. A fortnight ago, the silky Prima cotton T-shirts and trousers in blues, greys and creams (£7.99-£29.99) were presented in the serried manner associated with COS, several doors away on Regent Street. I could see at a glance that they would rejuvenate some tired things I own, including a suede H&M coat to which I am attached, in spite of its age.

It was also possible to spot within seconds the best bits from the holiday ranges, such as the shades (£4.99) and the woven holdalls (£19.99) in the kind of PVC that does a good job of mimicking leather.

My Chain Reaction companion, my friend Linda, remarked that the oversized, cotton cardigans in beiges and taupes (£19.99) also rose to a challenge - that of imitating Stella McCartney's knitwear. Ms McCartney designed a hugely successful one-off collection for H&M in 2005; the next guest designer will be Comme des Garçons' Rei Kawakubo, whose line will appear in the autumn.

H&M is now honouring Marimekko, the Finnish brand. But when I went to ask Linda whether the exuberant patterns of the Marimekko dresses (£29.99 - £39.99) would suit someone of my pallor, I found her perturbed. In a sacrifice of convenience to elegance, there was no longer a size tag on each hanger, forcing you to fumble around for the label. Irritating, but maybe yet another H&M innovation: try on the top you think will fit you rather than the one in your “size”. Rather liberating and somehow very Swedish.

The links in the chain

In 2006-7, H&M's post-tax profit was SEK 13.6 billion (£1.2bn) on sales of SEK 92.1 bn (£8.2bn); UK sales were SEK 7.3 bn (£646m)

Retail is detail

Layout: beautifully fitted out, if dauntingly large 7/10

Staff: cheerful 7/10

Changing rooms: swish 7/10

Bags: dreary 4/10

Overall score: great tops and trousers in a slicker setting 7/10

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