H&M Inches Into Premium Territory With Kidswear Focus, Galeries Lafayette Tie-Up

H&M is intensifying its strategy to raise its positioning. The Swedish group, the world's number two fashion retailer, has made the leap, for the first time, to the French department store Galeries Lafayette Paris Haussmann. Through a shop-in-shop format dedicated to its H&M Adorables children's line, the fashion company and the iconic department store located just a few steps from the Opéra Garnier are creating synergies along the lines of the previous collaboration with Selfridges in London.

Surrounded by children's fashion brands such as Sergent Major or Mayoral and childcare references such as Moulin Roti or Stokke, H&M has set up its first space in the department store in the capital's 9th arrondissement. Located on the fifth floor of the Boulevard Haussmann department store, the 63-square-meter outlet is dedicated entirely to its high-end children's fashion line, Adorables, launched globally in October 2024.

This strategic opening also marks the line's second physical foray into France following its debut at H&M's flagship store on boulevard Haussmann. The proposal follows in the wake of the ephemeral corner that the Swedish giant launched several months ago at Selfridges in London, where the brand presented this line for the first time in a premium retail environment outside its own stores. For the moment, in Spain, the accessible premium line is only available through the brand's online store.

"The setting of Galeries Lafayette in Paris Haussmann is perfect to present this line to new customers," said Isabella Innergård, CEO of H&M Kids, underlining the importance of the city as a major fashion capital. "We wanted to approach our customers and other different consumers with an unexpected and novel proposal, it is possible that for some it will be the first time they shop at H&M," she told Modaes about the potential access to new targets thanks to the newly opened Parisian location.

H&M surrounds itself with children's brands such as Mayoral and Sergent Major in its new corner.

Divided into two areas, one dedicated to babies and the other to children's clothing up to ten years old, the space offers a careful selection of eighty items with prices between 12.99 and 49.99 euros. "We pay great attention to the fabrics, betting on materials, cashmere, silk and wool," said Innergård about the ambition to evolve the children's offer towards the high-end through design and a qualitative proposal.

"Sustainability is closely linked to the fabrics, but also to the lifespan and durability of the garments," continued the category's top manager on the "strategic shift" of the children's offering. In fact, H&M even aspires to link itself with the vintage universe. "They are beautiful, well-cared-for garments that are appreciated, which gives them the value of wanting to keep them or inherit them; they are timeless designs destined to be passed on from one child to another," admitted Sofia Löfstedt, creative director of the children's line, underlining the pragmatic conception of garments such as bodysuits, which include buttoning extensions to last longer, accompanying the child's growth.

The corner, designed by H&M's in-house retail team, combines stone, wood and textiles to recreate a sophisticated and warm atmosphere, in line with the Swedish group's new visual language in its latest store renovations towards a high-end concept, such as in Westfield London, Stockholm or Seoul.

The company is immersed in a strategy to raise its brand positioning.

With this move, H&M is reinforcing its positioning in the premium segment, in a context of transformation of the group, which is committed to raising the level of its spaces, improving the design of its collections and expanding its presence in emblematic locations. The partnership with Galeries Lafayette, a benchmark in French retail, is part of this strategy to attract a more demanding customer without losing sight of its accessible identity, and comes against the backdrop of the Senate's approval of the anti-fast fashion law, which directly targets the practices of China Shein.

In recent times, H&M has concentrated its efforts on simplifying and elevating its global offering. "We have optimized our assortment to strengthen the overall customer offering and fashion credentials with clearer, stronger andmore recognizablecollections and capsule collections," the company told Modaes during a recent visit to its Stockholm headquarters.

The main axes of change relate to product improvement, the overhaul of its store network and the transformation of the brand, combined with a simplification of its chains and the reorganization of its teams. The change, which began in the women's category, is taking shape this year in the men's and children's collections.

Present in France with a network of 168 stores, H&M boasts ambitious plans for the market, although the group does not detail sales by market or category. "We want to target a more demanding clientele, both local and international, very attentive to fashion and product quality," said Manuel Da Cruz, Ile-de-France area manager for the Swedish group.

H&M's change began with its women's line and continues with its men's and children's lines.

The initiative is also part of an extensive store renovation plan in the Paris region, which includes key locations such as Forum des Halles. This store, the group's most profitable in the market, is in the process of remodeling and adapting its offer and will reopen its doors after the summer. In addition, the space upgrade plan will be completed by the end of the year, after having renovated the Beaugrenelle and Levallois spaces.

The Swedish company's latest ace up its sleeve is a strategic opening in Le Marais, one of Paris' trendiest neighborhoods, where it will open a permanent store in September with a focus on men's and women's fashion, as well as brand experience. The project follows an artistic pop-up store launched last year as a test, and confirms the group's desire to strengthen its presence in premium locations. The exact address of the store has not yet been confirmed.

In the first quarter of the financial year, H&M posted a moderate increase in sales of 3.10% to SEK 55,333 million (EUR 5,108 million). The company also posted a 53% drop in net profit to 53.5 million euros, affected by the unstable geopolitical context, increased investment and the impact of exchange rates.

Last week, the Persson family raised its control in the Swedish company's capital. The members of the founding saga of the fashion group took 70% of the company's capital and 85% of the voting rights, in a progressive takeover that could lead H&M to a future away from the stock market.