Can Discount Retail Brand Lift H&M Slump?

The dust has barely settled on the uproar over H&M’s “Cheeky Monkey” boys’ sweatshirt when another claim of racist children’s clothing has emerged.

The Swedish fast-fashion giant has apologized and pulled a range of children’s socks from its stores and website in response to complaints made by members of the Muslim community.

The socks featured an image of a LEGO figurine holding a jackhammer, which when viewed upside down apparently resembled the word “Allah” in Arabic, prompting outrage.

“At H&M we always aim to offer products that we believe our customers will appreciate,” a spokesperson stated. “The print on this sock represents a Lego figurine, any other meaning is entirely coincidental and we apologise if this motif has offended anyone.”

In response to disappointing earnings reported Tuesday, H&M will scale back store openings this year. One store the H&M Group will open is a new outlet concept it’s calling an “innovative off-price marketplace” to sell apparel from its own and others’ retail brands.

Afound is described as a “style- and deal-hunting paradise” of discounted fashion and lifestyle items, representing a wide range of well-known, popular brands for both women and men.

“We will offer fantastic deals on carefully selected fashion brands,” Afound’s Instagram bio promises. Its Facebook page adds:

We’re all about giving great fashion new life. You see, we sweep the world for gems, hand-pick our favourites and reduce the price before presenting our finds to you. Some might call us an outlet, while others might call us heroes of our time. We will offer fantastic deals later this year on carefully selected fashion brands. Afound will be available in Sweden. Keep your eyes peeled! Sign up for pre-shop access at afound.com #itsAfound

The retail concept will present a curated, season-less range from Swedish and international brands in a range of price segments, both online and in physical stores. Afound will also launch limited product releases from a range of brands, all at “attractive” prices.

“We see big potential for Afound and are looking forward to introducing the marketplace to our audience in Sweden in 2018. 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,” stated Fredrik Svartling, Managing Director of Afound.

Afound’s marketplace will launch online and with physical stores, starting in Sweden. Its website will go live when its first store opens in Stockholm later this year.

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