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Hennes & Mauritz AB (H & M), the world's second-largest clothing retailer, has dropped its cheap Monday financial brand, which is struggling financially, according to Agerpres.
The closure will be completed in June 2019 and will affect about 80 employees, announced the Swedish group.
H & M is facing increasing competition in the European market after young people have preferred to make purchases from online retailers such as Asos and Zalando.
"Cheap Monday has a traditional business model, which is currently facing great difficulties due to the transformation of the sector." The profits and sales of the brand have been declining for a long time, so the band will be abandoning Cheap Monday. it will be online on December 31"according to a press release from H & M.
In 2008, H & M acquired Fabric Scandinavien AB, owner of Cheap Monday, which sells jeans and owns Weekday and Monki.
Between June and August 2018, H & M's online sales grew by 32%, while net profit fell by 19% to 3.1 billion Swedish kronor ($ 352 million), while analysts surveyed by Reuters is expecting a gain of 3.2 billion Swedish crowns.
This year, H & M plans to open approximately 380 stores and close 140 stores. Most stores will open in emerging markets, while closures will be in mature markets.
The Swedish group has eight brands: H & M, COS and other stories, Monki, Weekday, Cheap Monday, Arket and H & M Home.
The first H & M stores in Romania were inaugurated in spring 2011. H & M (Hennes & Mauritz) was founded in 1947 in Vasterls, Sweden.
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