Secret Sales buys H&M’s Afound business (#1681845)

Secret Sales announced on Tuesday that it’s acquiring H&M Group’s digital fashion outlet Afound that will give it major exposure to the Nordics market. 

The UK-based company operates  a premium e-commerce marketplace for off-price fashion, sportswear and beauty in Europe and said the acquisition “solidifies” its position “as a dominant force in European off-price retail”.

And the firm clearly hasn’t finished making acquisitions with it saying that it “plans to continue to expand in 2025 with further M&A opportunities already in discussion”.

Relaunching on the Secret Sales platform in early December, Afound’s customers “will gain access to extensive European inventory, valued at over €5 billion sourced from 3,800 brands”.

Afound was launched in 2018 as an H&M Group concept and evolved into a digital marketplace in 2019, bringing together a curated selection of popular fashion and lifestyle brands alongside H&M’s own labels. It operated in seven European markets but in August H&M Group said it would close by the end of the year. It added that “we don’t see enough demand, partly because brands increasingly choose to use their own channels for sales, to further strengthen their customer relationships”.

But Secret Sales, meanwhile, does see value in the operation, which is perhaps unsurprising given that off-price is its speciality, while H&M Group is focused on in-season clothing production and retail.

Secret Sales is actually one of the largest players in off-price retail, with total account holders surpassing 16 million and over 150 million visits across its sites in the last 12 months. 

Importantly as mentioned, the acquisition expands its European footprint in the Nordics as well as generally strengthening its position in the European off-price fashion market. It means it now operates in 10 countries including the UK, Sweden, Denmark, Norway, Finland, Germany, The Netherlands, Belgium, Ireland and Spain. 

So will Afound be absorbed into Secret Sales? Apparently not. The new owner said Afound “will retain its distinctive brand identity and design aesthetic”, but it will also now “leverage Secret Sales’ state-of-the-art technology platform, ensuring a seamless and elevated experience for brands, retailers, and customers alike”.

Chris Griffin, CEO of Secret Sales, said: “In today’s challenging retail environment, we’re proud to be setting a new standard for brands and retailers to manage discount inventory in a way that enhances their brand and drives long-term profitability. Bringing Afound into the Secret Sales family reinforces our commitment to growing our premium off-price solution across Europe. By expanding into the Nordics, brands now have an even greater opportunity to reach new customers in multiple regions while maintaining control over their positioning. This acquisition is another step toward transforming the off-price landscape.”

And Afound MD Ville Klemming added: “We are pleased to see Afound’s legacy continue under Secret Sales. Afound has always been about delivering exceptional value to brands and customers. I am confident that Secret Sales will continue on that journey with quality and care. We are happy that the brand and the value created can continue to live and we are grateful to everyone who has contributed to the journey.”