The discount fashion marketplace will be launching both online and with a physical store this year in Sweden

Amid decreasing profits, Swedish clothing-retailer H&M is branching out from its regular business model with a discount marketplace called Afound. The outlet, described as a “style and deal-hunting paradise” in a press release, will be launching online and with a physical store in Sweden this year.

But the biggest change in strategy—considering H&M is already known for affordable fashion—is its decision to sell other fashion labels on Afound, an unprecedented move for the clothing brand. The company hasn’t released any details on which brands they will be including yet, but said the stores will present a seasonless range from Swedish and international brands in a variety of price segments.

“Afound cares about both the value of the products and the mix. And by offering personal style inspiration, quality labels, and the sense that you’re getting a really good deal, Afound will offer a new form of off-price experience”, said Fredrik Svartling, Managing Director of Afound, in the press release.

According to Quartz, with Afound, H&M is creating a place to unload unsold inventory. With too many stores and slow e-commerce, the brand is searching for ways to mitigate losses. The company has launched other brands in the past few years, but these have targeted a higher price point than H&M itself. The move into discount retail might be just what the company needs.

H&M


Lead Image: Pedestrian with H&M shopping bag, Sara Sette via Shutterstock

Amid decreasing profits, Swedish clothing-retailer H&M is branching out from its regular business model with a discount marketplace called Afound. The outlet, described as a “style and deal-hunting paradise” in a press release, will be launching online and with a physical store in Sweden this year.

But the biggest change in strategy—considering H&M is already known for affordable fashion—is its decision to sell other fashion labels on Afound, an unprecedented move for the clothing brand. The company hasn’t released any details on which brands they will be including yet, but said the stores will present a seasonless range from Swedish and international brands in a variety of price segments.