Swedish fashion chain Hennes & Mauritz AB wants to expand a new small-store concept in a bid to grow in mature markets where large city centre locations are increasingly hard to find, the Financial Times reported on Friday.

The paper quoted CEO Rolf Erikssen as saying the outlets are likely to concentrate on women's underwear and high fashion clothing and carry some product lines not available in H&M's existing stores.

The Stockholm-based firm has already tested three small stores, called Details by H&M, in Cologne and Oberhausen in Germany and Manchester.

"We feel there is a market now for small underwear stores," he told the paper. "It could be young profile shops, it could be ladies, it could be children's wear, it could be - as we are trying now - the Details by H&M shops."

He added: "In underwear we will create a line which will cost a little more. The style will be more luxury. We will take away some of the base garments and the shop look will be more upgraded."