Swedish H&M group is apparently developing an online platform, where it will sell a large number of clothing brands at discounted prices. To that end, it has already signed deals with sixty clothing brands.
50 million euro
According to Swedish news site Breakit, the new project is codenamed P12 and should employ about one hundred people. The launch, backed by a 50 million euro investment, is planned for mid-April, but it is not entirely clear how the new platform should function.
The H&M Group refrained from confirming the news, but it is clear it will need to find ways to attract the consumer online. Over the past quarter, the company had to deal with a turnover slump, because its stores do not attract the same amount of customers as they used to. For the time being, H&M has not yet managed to compensate for the turnover drop with increased online sales.
“We are always developing several new projects and have also recently launched Arket. However, we never discuss those projects until they are launched, so therefore I cannot comment on this news”, H&M head of investor relations, Nils Vinge, commented.