H&M has officially opened the first store for Afound, its brand new discount fashion brand and ninth overall.
The first Afound store is in Stockholm, with a second set to open in Malmö soon.
Sales via Afound’s online Swedish marketplace have launched in parallel with the opening of the stores.
The H&M Group plans to initially open five Afound stores before rolling it further.
“The idea was to create an innovative marketplace in the off-price sector with a relevant, curated and inspirational offering for our customers,” Afound creative director Mattias Ekberg said.
“We have focused strongly on the experience in both the physical and the digital store.
“Some people might call us an outlet, but our vision is for the customer to experience a style and deal-hunting paradise.”
H&M describes Afound as a “style- and deal-hunting paradise” selling discounted fashion and lifestyle products.
It will stock both external labels and items from H&M Group’s brands, such as COS, Weekday, Cheap Monday, Arket, and & Other Stories.
Afound also has two routes to market. The first is a more traditional direct-to-consumer retail model where H&M Group selects and buys products and offers them both in Afound stores and online.
The other is an online marketplace model where designers and merchants can sell and ship their items sold through the Afound marketplace.
“Consumer demand is changing as shoppers are constantly on the lookout for great deals,” Afound managing director Fredrik Svartling said.
“The Afound proposition is all about ‘giving great fashion new life’ and providing a premium experience for discounted brands.
“Our vision is to be a deal hunting paradise, giving our customers greater access to discounts alongside amazing new brands.”
H&M Group has not yet outlined when Afound could launch in the UK.
The Swedish retail giant has previously picked London as the place to launch European or UK flagships for many of its fascias, such as Weekday and Arket.