Young fashion retailer H&M will lead the expansion of Swedish fashion chains Monki and Weekday, after it bought a 60% stake in parent company Fabric Scandinavien last week.
Young fashion chain Weekday, which already has six stores in Sweden ranging from 8,500sq ft to 16,000sq ft, will open its first store outside Sweden in Copenhagen in Denmark this month.
Trend-led womenswear chain Monki has 12 stores in Sweden averaging 3,300sq ft. Fabric Scandinavien also owns denim brand Cheap Monday, which has 1,000 stockists globally, including 100 in the UK. H&M said it was “business as usual” for Cheap Monday and that it was committed to the wholesale business.
H&M chief executive Rolf Eriksen said: “Fabric Scandinavien is a fast-growing company and we will be looking at big expansion. There is room for more Monki stores than Weekday, and we expect to grow Monki at a quick pace.
“This should be seen as an addition to H&M’s growth strategy. Fabric Scandinavien will be kept separate and there will be no collaboration on buying or design. However, there are synergies on IT, production and expansion.”
H&M said the success of its Cos concept, which debuted last year in London’s Regent Street, had spurred the company’s interest in new concepts beyond the core H&M chain.
H&M paid SEK564 million (£46.6m) for a 60% share of Fabric Scandinavien, which is set to hit sales of SEK400m (£32.8m) for the 2007/08 financial year.
H&M has the option to buy the remaining 40% within the next three to five years.