• by Erik Sass  @eriksass1, July 14, 2009

One of the world's largest discount retailers is partnering with one of the largest out-of-home advertising companies in a global strategic alliance.

The partnership brings together H&M, the cut-rate fashion retail giant based in Sweden, and Clear Channel Outdoor, which owns almost 1 million display panels in 49 countries worldwide, promising high visibility for H&M outdoor campaigns across various formats, including billboards, signs and street furniture.

The deal is not exclusive, meaning H&M (the hip moniker of Swedish retailer Hennes & Moritz) will still be able to make deals with other out-of-home advertising companies. However, it confers on Clear Channel Outdoor the status of preferred partner for H&M's international ad campaigns, many of which are tailored by country.

H&M is likely to increase its outdoor ad budget as well. The companies have already collaborated together on a number of high-profile campaigns overseas, including the Paris launch of H&M's new lingerie line in December 2007, arranged by ZenithOptimedia, which blanketed the main Paris train stations, along with the rest of Clear Channel Outdoor's traditional billboard network in France.

Unlike many big retailers, H&M's discount fashion business has held up in the face of recession. In 2008, H&M had just over 8 billion euros in global sales, up from about 7 billion euros in 2007. Its relatively strong performance continued in the first quarter of 2009, when its revenues totaled over 2.1 billion euros, up from 1.8 billion euros in the first quarter of 2008.

However its profits declined in the second quarter of 2009 compared to 2008, from 470 million to 326 million euros.