H&M announced in its latest financial results call to investors that it will launch Arket, a new retail brand focused on health and wellness, inspired by its Scandinavian roots this summer.
The merchandise selection will feature women’s, children’s and men’s ready to wear and accessories along with a niche home department. In a departure from its other retail brands (H&M, & Other Stories and COS), Arket will sell outside labels.
Stores are set to open as early as this fall, first in London and then expanding throughout Europe. An e-commerce site will launch simultaneously.
Arket represents another move away from the company’s fast fashion model, with price points more on par with its COS brand than H&M, whose sales have slowed in recent months.
“Retail is going through a challenging period of change in which customers’ shopping behavior and expectations are changing at a fast pace as a result of growing digitalization. Artek is an accelerating development which also brings us great opportunities,” said H&M CEO Karl-Johan Persson.
As for the accompanying financial results, the H&M group’s sales saw a 7% increase.