Monday, 24 January, 2022

End clap for the king of “Cheap Monday” slim jeans

H&M, world number two in ready-to-wear, announced on Tuesday the shutdown of its struggling independent brand Cheap Monday.

In 2008, the Swedish group bought Fabric Scandinavien AB, owner of both this brand, whose flagship product is low-cost tight jeans, and the Weekday and Monki chain stores.

Cheap Monday’s products are marketed through around 3,000 outlets around the world as well as its online store and Chinese Alibaba’s Tmall platform.

“The trend has been negative for sales and profits of Cheap Monday for a long time. The H&M group therefore intends to close Cheap Monday,” says the Swedish brand, judging that the business model of this brand , based on wholesale trade, was no longer adapted to changes in the sector.

After acquiring Fabric Scandinavien, H&M launched several other independent chains in an attempt to expand its customer base.

“We see very good opportunities and great potential for all of the other brands within the New Business (division), all of which are experiencing positive development both in the digital arena and in brick-and-mortar stores,” says H&M.

The Swedish group still achieves most of its sales through its eponymous brand, which itself is struggling to adapt to the boom in online commerce.

The shutdown of the Cheap Monday brand should be effective by the end of June 2019 and lead to around 80 job cuts.

H&M shares took 1.25% around 11:15 GMT on the Stockholm Stock Exchange.

(With AFP)