STOCKHOLM – Swedish fast fashion brand H&M is to close down its Cheap Monday skinny jeans brand amid declining sales and profits. The brand operates a traditional wholesale business model and is sold in about 3,000 stores worldwide. A spokesperson for H&M told Apparel Insider: “The decision to close down Cheap Monday is to do with the fact that we are streamlining and focusing on our core business. It is very important to be close to the consumer when consumer behaviour is changing rapidly. Therefore, it is not part of our strategy to work with middlemen going forward. The decision will not impact the other brands within the H&M group.”
The closure of the brand comes at a time when profits and sales generally have been on the wane at H&M, with market share being eaten into by nimbler, more agile online brands such as Asos, Boohoo and Missguided. Amazon is also hugely increasing its presence in the apparel space.
All Cheap Monday employees and operations in Tranås and Stockholm, Sweden will be affected by the closure. Approximately 80 employees are impacted and H&M said in a statement talks with union representatives have started and the company plans for all employment contracts to be terminated during 2019. All employees will be provided external career support and will be given guidance in how to apply to continue working within the H&M group.
“We need to constantly develop our business and what we choose to invest in. We see very good opportunities and great potential for all of the other brands within New Business, which all are developing positively both digitally as well as through physical stores,” said Anna Attemark, head of new business at the H&M group.
The closure is planned to start immediately, with the aim of being complete by 30 June 2019. The Cheap Monday store in London and Cheap Monday’s online store will close on 31 December 2018.