As it reported its worst plunge in profits in six years, Swedish company H&M announced that it will soon debut a new off-price marketplace called Afound. It describes the news outlet as a "style- and deal-hunting paradise" that will sell discounted clothes and lifestyle items from H&M group's own labels, which include offshoots such as COS, & Other Stories and Cheap Monday, as well as external labels. The off-price marketplace is set to offer a selection of season-less products from a broad price spectrum in both online and in physical stores. Although Afound will sell clearance product from within the H&M family, the focus will be on external brands. "The main idea is to bring something new to the off-price market, which is huge and growing. There is a great opportunity for Afound to take a big part of the market with a well-curated and wide assortment. It will offer stylish product and great deals" said the group's chief financial officer Jyrki Tervonen. H&M had reportedly already signed on 63 brands, although the exact brands have yet to be confirmed.

"We see big potential for Afound and are looking forward to introducing the marketplace to our audience in Sweden in 2018. Afound cares about both the value of the products and the mix. And by offering personal style inspiration, quality labels, and the sense that you're getting a really good deal, Afound will offer a new form of off-price experience", said Fredrik Svartling, Managing Director of Afound.

The first Afound store is set to open on Drottninggatan in Stockholm and its opening will coincide with the launch of Afound's digital marketplace in Sweden.