H & M, the world's second-largest fashion retailer, said on Tuesday it would close down its struggling independent market Cheap Monday.
STOCKHOLM: H & M, the world's second-largest fashion retailer, said on Tuesday it would close down its struggling independent market Cheap Monday.
H & M in 2008 bought Fabric Scandinavien AB, the owner of the Cheap Monday brand, whose trademark product is low-priced skinny jeans, and the store chains Weekday and Monki.
Cheap Monday products are mainly sold around around 3,000 resellers world-wide. They are also sold through their own online store, a flagship store in London and on online marketplaces Asos and Zalando.
"Cheap Monday has a traditional wholesale business model, which is a model that has face major challenges due to the shift in industry," H & M said in a statement.
"There has been a negative trend in the sales and profits of the Cheap Monday for a long time, and the H & M group intends to close down Cheap Monday."
Fabric Scandinavia was H & M's first-ever acquisition. H & M has since launched several independent chains such as COS and & Other Stories to broaden its customer base.
"We see very good opportunities and great potential for all the other brands within New Business, which all develop positively both digitalally and through physical stores," H & M said on Tuesday.
Its core H & M brand, which has struggled to adapt to the online shift in the industry, still accounts for the bulk of business.
H & M said it aimed to complete the closure of Cheap Monday, which affects around 80 employees, by the end of June 2019.
(The story corresponds to 3rd paragraph to Asos and Zalando)
(Reporting by Anna Ringstrom, edited by Louise Heavens)