Kept the rumour mill rolling...
It was just rumours, now it’s true, H&M has said it will launch a luxury brand and build a new chain of stores in 2013. H&M will keep the rumour mills rolling for a while though as it has not announced the a name for the brand, and whether the products will be at a luxury price point.
“We have many different projects in progress and already next year we will be launching a completely new store chain," H&M chief executive officer Karl-Johan Persson commented. "The new chain of stores will be independent and will complement the other offerings from the group. Our collections have been well received which has resulted in increased market share in a very challenging fashion retail market, and we have strengthened our position even further," Persson added. "We have great faith in this new brand and we see considerable potential for further initiatives."
Pundits are already trying to suggest that the luxury brand announcement indicates some change of direction for H&M but the company has been at some pains to talk this down and say that all these announcements are simply what a growing brands does to increase its reach.