What: H&M is consolidating its brands to remain competitive.

Why it is important: While every operator suffers from the competition with Shein, brand consolidation in the fast-fashion sector might be at the same time good news for department stores (if they manage to attract them) or bad news if this creates more powerful competitors.

Swedish fashion group H&M is merging its Monki and Weekday brands to create a major youth destination and better compete with arch rival Inditex.

The company hopes to address changing customer behaviour and will also bring back the jeans label Cheap Monday with a smaller product line. While the brands will initially continue to co-exist, H&M is exploring options for "combined customer experiences" and the addition of other brands and partners.

Administrative and operational costs will be reduced as Monki's headquarters are closed.

H&M merges Weekday and Monki