The deal aims to build a partnership between the two companies focused on enhancing circular fashion opportunities within Sweden and abroad.
For Kappahl Group, the acquisition aligns with its strategy of creating a portfolio of brands that operate independently but make use of the group’s shared resources.
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Kappahl Group president and CEO Elisabeth Peregi said: “This is an important and exciting step for us. Arkivet represents a business model we strongly believe in and one that has a natural role in a more responsible fashion industry, where garments are given a long life.
“By investing in Arkivet, we are strengthening our position in circular fashion and taking another step towards our purpose – contributing to a more responsible world of fashion.”
Arkivet, since its launch in 2017, has focused on streamlined second-hand retailing. Individuals sell garments on commission via Arkivet’s outlets in Stockholm, Gothenburg, and Malmö, with the chain facilitating the resale of over 400,000 garments annually.
In April 2023, the company introduced its own digital platform, Arkivet.com, providing users with the ability to manage and monitor sales of pre-owned items.
Kappahl Group, which is headquartered in Mölndal, Sweden, operates around 350 stores under the Kappahl and Newbie brands across multiple countries, including Sweden, Norway, Finland, Poland, Iceland, and the UK.
It also sells online in more than 30 markets across Europe and Asia.
Both Kappahl Group and Arkivet report that they plan to develop and extend Arkivet’s business model, beginning with the Nordic market.
Arkivet CEO Martin Hallander believes the partnership offers “significant opportunities” and considers Kappahl Group an important partner for broadening access to second-hand fashion.
Hallander said: “We are genuinely proud to welcome Kappahl Group as a partner. With its strong Nordic presence and extensive experience in brand building, we see great opportunities to scale the Modern Second Hand offering together. Kappahl Group’s ambitious commitment to sustainable transformation has been a decisive factor for us in choosing a partner.”
