The H&M Group has announced that two of its portfolio brands, Weekday and Monki, will be merging as part of its efforts to cater more broadly to the needs of young consumers.
Coinciding with the move, the company will also be reviving its denim label Cheap Monday, which was discontinued in 2019 due to declining sales. Now, the brand will be returning as part of the merger, through which it is set to offer a small assortment of jeans.
The three-way brand umbrella hopes to help reduce administration and operational costs, as well as free up resources to further focus on the development of brand experiences, a press release noted. H&M also said it is aiming to strengthen its competitive position by leveraging customer synergies.
While the Weekday and Monki brand experiences will continue to remain the same, the group is looking to explore new opportunities.
Monki head office to close, employees at risk
This involves the closing of Monki’s head office in Gothenburg, Sweden, which will “regrettably affect Monki employees”, who H&M said were being supported to apply for a role within the new organisation or elsewhere in the group.
Meanwhile, the head office will be based in Weekday’s current premises in Stockholm, with organisational changes set to come into effect during the coming months.
Speaking on the merger, Anna Attemark, head of portfolio brands at H&M Group, said: “We see great potential with this new youth destination, with the brands Weekday, Monki and Cheap Monday. Over time we will also explore how to further develop it by including more partners.
“While looking forward to having the new organisation up and running, we remain humble for the changes this entails for some of our employees.”