Secret Sales expands across Europe with H&M’s Afound acquisition

Secret Sales, a prominent player in the European off-price retail market, has announced its acquisition of H&M Group’s Afound, further strengthening its presence across the Nordic countries. This move positions Secret Sales as a leading force in off-price fashion, sportswear and beauty, now operating in 10 countries, including Sweden, Denmark, Norway and Finland.

The acquisition comes at a time when consumer behavior is shifting towards affordability and flexibility. The global off-price retail market is thriving, with consumers increasingly seeking quality brands at discounted prices. Secret Sales’ portfolio, boasting a €5 billion inventory from 3,800 premium brands, aligns well with this demand.

Also, the integration of Afound, which originated as a curated marketplace for discounted fashion under the H&M Group, brings a Nordic touch to Secret Sales’ offerings while using its advanced tech platform to enhance the shopping experience.

Elevating CX with technology

Secret Sales’ acquisition of Afound isn’t just about geographical expansion—it’s about transforming the customer experience (CX). The marketplace will integrate Afound into its advanced technology platform, promising seamless navigation, personalized recommendations and fast, efficient fulfillment.

A key enabler of customer satisfaction in off-price retail is flexibility in payments. Buy Now, Pay Later (BNPL) services are increasingly popular in regions like the Nordics, where platforms like Klarna and Afterpay dominate e-commerce. Research by GlobalData projects the BNPL market to grow to US$349 billion by 2028, with 40 percent of users aged 25-34 utilizing these services for purchases, particularly in fashion. Secret Sales is likely to capitalize on this trend, offering convenient payment options that align with the spending habits of younger, value-driven consumers.

Tapping into shifting consumer preferences

This acquisition comes at a pivotal moment as European consumers prioritize affordability and value without compromising on quality. According to McKinsey’s State of Fashion 2024 report, nearly 60 percent of consumers are more price-conscious than they were five years ago and off-price retail is thriving as a result. Secret Sales is strategically positioned to cater to this trend, offering premium brands at discounted prices while leveraging the trust and brand recognition established by Afound in the Nordic markets.

Chris Griffin, CEO of Secret Sales, highlights the importance of offering sustainable solutions for managing discount inventory, saying that 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.”. By incorporating Afound, Secret Sales enables brands to maintain control over their positioning while accessing new markets. This strategy is essential in the competitive landscape, where 62 percent of consumers see BNPL as a potential replacement for traditional credit cards, a factor that off-price retailers can capitalize on.

The road ahead

Secret Sales plans to build on this momentum, with further expansions and acquisitions anticipated in 2025. As the company enhances its footprint, it is well-positioned to reshape off-price retail, catering to the growing demand for value-driven shopping experiences coupled with flexible payment options.

For CX professionals, the integration of technology, the rise of flexible payment solutions and a commitment to sustainability are key lessons from Secret Sales’ strategy. The intersection of these trends marks a significant evolution in retail, making Secret Sales a case study in customer-centric innovation.

Quick links

• How Trump could change CX and corporate America
• Shein prepares for London IPO with investor roadshow
• UK customer service departments downsize

Special Report: The Global State of CX

Now in its eighth year, this edition of our flagship annual report is also the first in the Global State series to examine the profit and loyalty benefits delivered by disruptor technologies such as generative AI and virtual reality. Download the Global State of CX now.

Download Now