H&M will close Afound this fall

Afound, H&M’s digital outlet, will be closing its doors later this year. Brands that are displayed in the outlet have adapted more direct-to-consumer strategies, resulting in a lack of demand. Their products in sale are often sold on their own websites.

Afound was launched in 2018 by H&M. It is a digital outlet platform, showing discounted items. In addition to clothing, shoes and home accessories, it also added cosmetics, perfumes and shampoos to the outlet store in 2020. It features external brands, as well as brands from H&M like Monki and Weekday.

Online and offline stores

At its launch, Afound started out with an online and offline store. That offline store was located in Stockholm, Sweden. Later, it expanded with more brick-and-mortar stores in other countries. But now, it is a purely digital platform operating in seven countries in Europe.

‘Economic viability’

H&M has recently released its financial report for the first half year of 2024. Its net sales increased 1 percent compared to first half of 2023. It also reported an operating profit of 806.1 million euros (9.17 billion Swedish kronor), which was higher than a year earlier when it generated 479.9 million euros (5.46 billion Swedish kronor).

H&M is adjusting its priorities

H&M has been adjusting its priorities recently, including the adjustment of its return fees. It wants to reach more economic viability and long-term resilience. As part of that plan, it looked into the workings of Afound. It is now discontinuing Afound. The outlet will close during the fall, this year.

‘Not enough demand’

“When evaluating Afound’s current position, we do not see enough demand, partly because brands increasingly choose to use their own channels for sales, to further strengthen their customer relationships. This has led to the difficult but necessary decision to discontinue Afound”, the company stated.