Secret Sales has acquired Afound from H&M Group, marking a significant move in its European expansion strategy.
- Afound, launched in 2018, offered products from both H&M’s brands and external ones, but was shut down due to low demand.
- The acquisition aims to strengthen Secret Sales’ position in the European off-price retail market.
- Secret Sales, which has significant inventory and customer base, plans to relaunch Afound as an independent platform.
- Executives express optimism that the acquisition will enhance brand value and customer offerings.
Secret Sales has made a strategic acquisition of H&M Group’s Afound, a digital outlet known for stocking a mix of external and H&M brands. Launched in 2018, Afound unfortunately faced closure as a result of insufficient demand. This acquisition signals Secret Sales’ proactive approach to expanding its footprint within Europe’s competitive retail sector.
The purchase of Afound is not an isolated move; rather, it reflects Secret Sales’ ambitious acquisition strategy as highlighted by their recent procurements of the German discount platform Dress-for-less and Spanish retailer Dreivip. With an impressive inventory worth €5bn (£4.2bn) and 16 million registered customers, Secret Sales is well-positioned to leverage this new acquisition to enhance its market presence.
Significantly, this acquisition will see Afound relaunch as a standalone website, ensuring that the brand’s unique identity continues after its rebranding and integration into the Secret Sales umbrella. CEO Chris Griffin articulated that welcoming Afound reiterates Secret Sales’ dedication to expanding their premium off-price solutions across Europe, particularly bolstering their reach in the Nordics.
In statements following the acquisition, Ville Klemming, the managing director of Afound, expressed positive sentiments about this transition. He emphasised that Afound’s tradition of delivering value remains intact and is optimistic about the potential for quality and care that Secret Sales brings to the table. The acquisition is viewed as a pragmatic step in transforming the regional off-price retail landscape.
The acquisition of Afound by Secret Sales is poised to transform the landscape of off-price retail across Europe.
