H&M to close Afound over lack of demand. Credit: JuliusKielaitis/Shutterstock.

Sweden-based multinational fashion retailer H&M has announced the impending closure of its digital outlet, Afound, citing a lack of demand as brands move towards direct-to-consumer channels.  

The multinational fashion retailer made the announcement on 21 August 2024. 

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The initiative is part of the brand’s larger plan to adjust priorities to secure economic viability and long-term resilience. 

H&M stated: “When evaluating Afound’s current position, we don’t 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.” 

Launched in 2018, Afound served as an outlet business with both physical stores and an online presence, offering discounted apparel from external brands including H&M’s own labels such as Weekday, Monki and H&M HOME.

The outlet operated in seven European countries, including Sweden, Germany and the Netherlands. 

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The decision to phase out Afound will take effect in the autumn of 2024.

H&M has committed to supporting the Afound team in finding new opportunities within or outside the group. 

H&M added: “Afound and the team have broken new ground for H&M Group, renewing off-price in a way that has served both customers and brands since the start in 2018. The valuable insights and learnings generated during the journey will be captured and built on going forward.” 

In June 2024, H&M reported that its net sales increased by 1% in the first half-year (H1) of fiscal 2024 (FY24) to Skr113.27bn ($10.73bn) from Skr112.48bn in H1 FY23.