H&M completes Cheap Monday acquisition

H&M has acquired the remaining 40 percent of the shares of Swedish fashion concern FaBric Scandinavien, which runs the store chains Weekday and Monki as well as the Cheap Monday brand.

H&M completes Cheap Monday acquisition

“H&M has great faith in the concepts, which are judged to have great potential for the future,” the company said in a statement on Wednesday.

FaBric Scandinavien will be incorporated fully into the H&M Group, but the brands will continue to be operated as separate concepts, the company added.

In the spring of 2008, H&M acquired 60 percent of the shares of privately owned FaBric Scandinavien AB through a cash purchase.

The purchase agreement also included an option to acquire the remaining shares in FaBric Scandinavien. H&M has now exercised this option and purchased the remainder of the shares.

The purchase price for the other 40 percent of the company was 8 million kronor ($1.15 million) in cash, making the total price paid by H&M for FaBric Scandinavien 552 million kronor.

The company has expanded substantially since the acquisition two years ago, more than tripling the number of stores in the network to 66 from 20. Weekday and Monki stores now operate in seven countries.

“The expansion and international roll-out of Weekday, Monki and Cheap Monday will continue,” the company said.

The company was sold by its founders Adam Friberg, Lars Karlsson, Örjan Andersson and Linda Friberg.

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H&M competitor to sponsor Sweden’s Olympic team

Six months after establishing itself in Stockholm, Japanese clothing brand Uniqlo has announced it will sponsor Sweden’s athletes at the 2020 Olympics.

H&M competitor to sponsor Sweden's Olympic team
Anna Hasselborg of Sweden's curling team tries out new kit supplied for the country's athletes by Uniqlo. Photo: Henrik Montgomery/TT

The clothing chain, one of the world’s fastest-growing retail companies, is also set to open more stores in the Scandinavian country.

“Swedes are so sophisticated and warm-hearted,” Uniqlo Europe CEO Taku Morikawa said, stressing how welcome his company has been made to feel.

Morikawa was in Sweden to present the partnership between Uniqlo and the Swedish Olympic Committee at an event at Uniqlo’s store on Hamngatan in Stockholm.

Sweden’s athletes wore teamwear supplied by H&M at the last two Olympic Games.

The Stockholm store, Uniqlo’s first in the Nordic region, opened its doors in August 2018. An expansion is now planned on the Swedish market, although Morikawa declined to reveal where.

“We definitely have plans to open more stores here,” he said.

A store will also open in Danish capital Copenhagen in the coming spring as Uniqlo’s holding company Fast Retailing continues its global expansion.

Sales figures in Sweden’s clothing retail sector have seen a downward trend in recent years, with an exception in 2015.

H&M is usually cited as one of Uniqlo’s main competitors.

The impact of a new player on an already-competitive market is difficult to predict, according to the Swedish Trade Federation (Svensk Handel).

“Locally, competition is sharpened, but competition is already fierce. I would be inclined to say that this type of partly new concept store can, instead, help to revitalise the physical retail sector for clothing,” the association’s head economist Johan Davidson said.  

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