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Swedish fashion retailer H & M Hennes & Mauritz has announced it will close its cheap jeans brand, Cheap Monday, which has struggled to adapt to changes in the fashion industry.
The clothing retailer has announced that it will focus on its core business, adding that the fashion sector was undergoing a "period of deep change" and that recent changes have resulted in the traditional business model of Cheap Monday being faced with great challenges.
The group said the brand's sales and profits – which has been part of the group since 2008 – have been declining for a long time.
H & M has struggled to compete with its online competitors in recent years, as store traffic has declined. In its most recent results, the group announced a 3% increase in sales, indicating that the move to online sales to counter poor sales in the streets was already advancing.
Anna Attemark, head of new business at H & M, said that other brands in the business, including Monki, COS and & Other Stories, were developing positively, both in their physical stores and in digital.
The closures are expected to begin immediately, with the London store and the online store closed on December 31, 2018. The group expects the process to be completed by next June, with approximately 80 employees affected.
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