This fall, H&M will add its latest luxury designer to its impressive rack resume.
The economical retailer has plans to merge with high-end designer line, Versace later this year. The Swedish fashion maker hopes to raise sales by bringing in a new Versace collection right before the holidays.
The new line is expected to boost sales for H&M in November, but don’t expect long-term effects, since the collection is expected to sell out within days, if not hours.
According to Margareta van den Bosch, creative adviser of H&M, “Versace is one of the most important brands of recent times, and their collection for H&M will be glamorous and flamboyant—everything Versace stands for.”
The collection will include women and men, as well as a home collection. In addition, countries with H&M online access will be able to shop the line after January 2012.
This won’t be the first flashy fashion to take up rack at H&M. Back in 2004, it all started with designer Karl Lagerfeld, then Cavalli, Stella McCartney, Comme des Garcons, Jimmy Choo and most recently, Lanvin. All of these were major attractions for the H&M shopper and sold out almost immediately.
Even though it is expected a sales growth, the share price of the company will not change as much. During Lanvin’s sales period with H&M last year, its items were displayed on 10% of the floor space throughout 200 of its locations. With Versace these numbers will most likely raise to 12% in 300 stores.