Stockholm - The grandson of the founder of Swedish clothes retailer H&M was named the new chief executive of the group on Wednesday.

Karl-Johan Persson is set to assume the position as chief executive on July 1, replacing the retiring Rolf Eriksen. The pair will work closely together in the run-up to to the handover, the group said.

Persson is grandson of founder Erling Persson, and the son of Stefan Persson, the largest H&M shareholder with a 36-per-cent stake. Stefan Persson has been chairman of the board since 1998.

Karl-Johan Persson, born in 1975, is currently in charge of expansion, business development and brand and new business.

In 2000 he became a board member of the H&M subsidiaries in Denmark, Germany, the United States and Britain, and in 2006 was elected to the board of H&M's parent company.

The incoming chief executive said he had "a strong commitment to H&M and a long-term view of the company."

His late grandfather, Erling Persson, opened the first H&M store in Vasteras, west of Stockholm, in 1947. By the end of 2008 the chain operated some 1,700 stores worldwide.

It has over 70,000 employees and posted a pre-tax profit of 2.65 billion dollars for 2008. (dpa)