Fashion giant H&M takes UK's high streets

Daily Fashion Juice
Friday, August 26, 2011

Fashion giant H&M takes UK's high streets by storm with Scandinavian chic

Swedish retailer leads charge with 'cooler' brands such as Acne and Monki a hit with celebrities

Lauren Cochrane

H&M has become increasingly popular with British shoppers – the Swedish retailer recently moved into Selfridges. Photograph: Christian Charisius/Reuters

While the French look has invaded British high streets over the past few years, thanks to brands such as Sandro and Comptoir des Cotonniers, the latest conquerors sweeping in are Swedish.

At the heart of this revolution is H&M, which has almost 200 stores in the UK. But the Swedish fashion giant's ambitions remain far from satisfied.

This week it entered Selfridges for the first time; next Thursday the London department store also welcomes Monki, the H&M-owned brand which began five years ago and now has 49 stores in seven countries. COS, also owned by the H&M group and present in the UK since 2004, will open two stores this autumn, suggesting growing demand for its high street-priced minimalism.

Then there is the cool stock of Swedish fashion brand Acne – beloved of TV presenter Alexa Chung and her acolytes for its easy but edgy style – which opened a London boutique last year after recording a 2009 turnover of £32m.

Stockholm's reputation as an alternative fashion capital has grown and grown. The city's fashion week now attracts major international names in search of the next Acne.

"I never used to go but now I know I'll always find brilliant things there," said Yasmin Sewell, a creative consultant and forecaster who has been instrumental in the brand's UK success.

Stockholm's street style is also becoming influential: city residents, known for a classic yet quirky look, regularly feature on blogs such as Facehunter.

Susie Lau, of fashion blog Style Bubble, believes it is an aesthetic "that appeals to a lot of people – a sort of intangible cool nonchalance".

Lau says that Monki – which apparently targets "the young-at-heart girl" – is well aware that capturing Stockholm's street look could become its unique selling point with young British shoppers.

Monki chief Henrik Aaen Kastberg describes the label as "a flirt between expressive street style and Scandinavian fashion sense".

The branding comes with cute cartoons, with prices for pieces such as the polka dot blouse or skater miniskirt below £120.

"It's quite niche but I can see it working in fashion cities," said Sarah Peters, lead analyst at Verdict Research. "The big difference is that it has H&M behind it."

H&M, which has had a presence in the UK since 1976, aims to add 10%-15% more stores each year with the help of designer collaborations; its latest, with Versace, arrives in November.

While H&M's sales figures in July were down 6% on the previous year's figure, it remains the second biggest retail group in the world, after Inditex (which owns Zara and Massimo Dutti). Profits in 2010 were 25bn Swedish krona (£2.4bn), up 13% on the previous year, with 8.3bn kronor earned in the UK. George MacDonald of Retail Week described the July figures as "a blip", adding that "there's no evidence to suggest they have lost their way".

And with newer brands such as COS and Monki strengthening the group's position through diversification, Sweden looks set to have an ever increasing influence on British high street style.