H&M is selling $1.70 crop tops to compete with Shein

• H&M is selling some crop tops for $1.70.
• The prices, which were marked down from $4.99, rival some of Shein's rock-bottom prices.

H&M is taking a page from Shein's playbook and slashing the price on some of its tops to a staggeringly low cost of $1.70.

The prices didn't start that low. One of the crop tops, which comes in black and white, was marked down on Friday by nearly 70% from $4.99.

The price cuts appear to mirror one of Shein's core strategies: competing for customers by offering the lowest prices possible.

Shein, the Singapore-based online retailer, first surged in popularity during the pandemic when customers were scouring for affordable retailers. At Shein, consumers found single-digit price tags on hundreds of items. Shein has since emerged as a leading fast-fashion retailer and last year scored a $100 billion valuation that would make it worth more than H&M and Zara combined (though that valuation has since fallen to $66 billion, The Wall Street Journal reported).

Despite concerns about Shein's potential impact on the environment and labor conditions, consumers have continued to flock to the brand: the average Shein shopper is shelling out as much as $100 per month on clothing — 60% more than the average US woman. This month, Shein was the most Google-searched apparel retailer, and one of the most downloaded shopping apps in the US, according to data from UBS.

After a period of layoffs and store closings, H&M is showing signs of a rebound, however. The fashion brand's new summer collection has been a hit with shoppers. The company on Thursday reported a 10% sales increase from June 1 to 27, compared to a year earlier.

A spokesperson for H&M declined to comment on when the brand started discounting tops to as low as $1.70. The retailer's price range for tops is roughly $5 to $237, according to a review of its website.

Even as H&M may be picking up more sales, other, cheaper, fashion e-commerce sites are emerging. Now shopping app Temu, a Chinese dollar store, is starting to overtake Shein. In May, US spending on Temu was 20% more than at Shein, Bloomberg reported.