A TRENDY fashion chain owned by H&M will close all of its stores in a shock move for the high street.
Monki has seven stores in the UK, including a site on London‘s Carnaby Street and Manchester‘s Arandale Centre.
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The brand was known for its colourful designs and a popular place for trend-conscious Gen Z shoppers to buy low-rise and baggy jeans.
But come next year customers may struggle to find its funky pieces on the high street.
That’s because H&M has plans to either shut down Monki stores or merge them with another one of its fashion brands, Weekday.
The Scandinavian retail giant wants to blend the two brands together to make a one-stop shop that appeals to young shoppers.
A statement from H&M read: “A limited number of Monki stores are intended to be transformed into multi-brand Weekday destinations, while the others are intended to be closed.”
“The newly formed Weekday multi-brand destination will cater to customers’ high aesthetic standards while embracing their multitude of unique expressions.”
As part of this process, H&M will also revive its Cheap Monday brand after nearly six years off the high street and begin selling it in Weekday stores.
The fashion line was a hit during the early noughties but H&M axed it in 2018, blaming poor sales.
Weekday has five locations in the UK, all of which are in London.
Like Monki, it is catered towards a younger audience and sells trendy fashion pieces.
H&M has not yet confirmed when it will pull the shutters on the Monki sites or announce which ones have been saved for integration.
Currently, all Monki stores in the UK remain open and its clothes can also be bought online via its website.
The full list of Monki stores in the UK includes:
- London – 37 Carnaby St, Soho, W1F 7DT
- Bristol – Cabot Circus, Concorde St, BS1 3BX
- Birmingham – High Street, 41-43 High Street, B4 7SL
- Sheffield – 108 Pinstone Street, S1 2HQ Sheffield
- Manchester – Arndale Centre Unit L31 & L32, Arndale Shopping Centre, M4 3AQ Manchester
- Newcastle – St Andrews Way, Eldon Square, NE1 7XD Newcastle
- Glasgow – Buchanan Galleries, Buchanan St, G1 2FF Glasgow
WHAT’S HAPPENING AT H&M?
The decision to integrate these brands comes as H&M is battling a tricky retail environment.
Net sales at the retail giant were flat in the third quarter and unseasonable weather over the past few years has impacted overall trade.
The fashion giant also faces increased competition from Zara owner Inditex, which has been dominating the high street in recent times and collaborating with celebs such as Kate Moss.
TROUBLE ON THE HIGH STREET
The news comes amid a challenging time for the whole of the UK’s retail sector.Â
High inflation coupled with a squeeze on consumers’ finances has meant people have less money to spend in the shops.Â
Also, the rising popularity in online shopping has meant people are favouring digital ordering over visiting a physical store.Â
This ongoing trend has seen brands such as Paperchase vanish completely.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included Paperchase, Cath Kidston, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
The Body Shop and Ted Baker are the biggest names to have already collapsed into administration this year.