Swedish fast fashion retailer H&M has laid out a strategy for its new brand Afound to focus on online expansion rather than physical store expansion, contrary to what was previously planned.
Afound retails clothes from different brands as well as its own brands at marked-down prices in Sweden through stores and its online portal.
“I joined the company in May and chose to review the strategy going forward,” reportdely said Afound CEO Joanna Hummel.
Joanna added “Now we have clarified that as we move forward, our focus is the marketplace which means that we will have a digital focus.”
The brand is trying to focus on how its customers like to shop.
Afound is H&M group’s first business to sell merchandise from external brands and announced its decision to enter the Netherlands with its online operations. Post successful launch, it plans to expand to other countries in Europe as a part of its long-term strategy.
“We will evaluate market by market which role the physical presence is to have for us,” Joanna said.
She also added that no decisions had been made to shut down the existing stores; however, nearly 50 central roles in Sweden focused on physical store operations would be cut, thereby reducing staff to about 100.