Andrea Felsted, Columnist

Desperate H&M Hits the Bargain Bin to Solve its Problems

Introducing a new cut-price format is a necessary step to clearing excess stock.

January 31, 2018 at 11:05 AM UTC

Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times.

Hennes & Mauritz (H&M) Locations Ahead Of Earnings Figures — Michael Nagle/Bloomberg

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What do H&M shares and its new store concept have in common? They are both offering big discounts.

Hennes & Mauritz AB, which is grappling with the biggest drop in quarterly sales on record and shares that have fallen by about 40 percent over the past year, announced on Wednesday that it will introduce Afound, an outlet chain for its and other companies' excess stock.