H&M shuts down its digital outlet store Afound

H&M, the global fashion retailer, has decided to shut down its digital clothing sales platform, Afound, by the end of this year due to insufficient demand.

A picture Afound's physical outlet store selling discounted apparel from various external brands (FashionSweden Photo)

What is Afound?

• Afound's origin: Thee Swedish fashion retailer H&M launched Afound in 2018 asa discount store selling a variety of brands both in-store and online. It later shifted its strategy to focus on online sales.
• Geographical reach: According to its website, Afound sold clothing in 7 European countries, including Sweden, Germany, and the Netherlands.

What does closure of Afound means?

• Reason for closure: H&M cited weak demand as the primary reason for closing Afound, emphasizing that brands are now more inclined to use their channels for sales, limiting Afound's growth potential.
• Shift in strategy: This closure highlights a significant shift in how brands are interacting with customers, favoring direct engagement over third-party platforms.

August 23, 2024 07:48 AM GMT+03:00