H&M has announced it is to close down its Cheap Monday brand blaming “a negative trend in the Cheap Monday’s sales and profits over a long time”.
The fashion retailer said the fashion industry is “in a period of extensive change as a result of ongoing digitalisation” and as such H&M is to prioritise and focus on its “core business”.
The group announced the decision is to affect around 80 employees with their contracts to be terminated during 2019, although all employees will be provided with external career support and guidance in how to apply to continue working within the H&M group.
The closure is planned to start immediately, with the aim of being complete by 30 June 2019. The Cheap Monday store in London on Carnaby Street and Cheap Monday’s online store will close on 31 December 2018.
Anna Attemark, head of new business at the H&M group, said: “We need to constantly develop our business and what we choose to invest in. We see very good opportunities and great potential for all of the other brands within new business, which all are developing positively both digitally as well as through physical stores.”