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Zalando wants to double sales by 2020, boosted by new retail partnerships

Zalando wants to double sales by 2020 as Europe’s biggest online fashion retailer announced new partnerships. It has announced that Nike and H&M’s Weekday brands are joining its partner programme, which means it sells their goods on its website for a commission, rather than buying it in on a wholesale basis.

That’s a big change for the firm as up until recently, wholesale had been a key focus for Europe’s biggest pureplay fashion e-tailer. And after building up its tech and logistics expertise, as well as enjoying a huge customer base, its opportunities for flexibility are strong.

Zalando said that Danish fashion group Bestseller, which owns a basket of brands such as Jack & Jones and Vero Moda, will be its first big customer for logistics services, taking advantage of its warehouse and shipping operation.

It also has deal with Schuh and Tommy Hilfiger stores in Berlin that will see physical store inventory being sold on its site, Reuters reported.

At a recent event, a spokeswoman said Zalando aimed to double sales by 2020 from the €3.6bn in 2016. That may sound ambitious but it will have the ability to handle €8bn of sales once new Swedish and Polish warehouses are ready and a longer-term aim is for sales of €20bn, presumably through its own operations and in conjunction with partners.

The advantages for partners are that brands can keep control of their stock and its presentation, operations chief David Schroeder said. He told Reuters that it “turns Zalando into a shopping mall” and helps to differentiate it from Amazon.

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