Zalando to close its private labels business
Online fashion retailer Zalando is to close its zLabels private labels business after taking the decision to pursue a complementary strategy with its partner brands.
As a result, zLabels will be closed on 1 April.
Zalando co-chief executive David Schneider said: “zLabels was founded in 2010 in order to fill the ‘blank spots’ in our assortment, offering our customers products that were not being provided by our partner brands. In the last 10 years, our business has become more attractive to both customers and brands. Since we are committed to our platform strategy, and as we continuously onboard new brands and verticals, we decided to refine our assortment including our own labels.”
Under the new strategy, 11 private label brands will be kept for the time being and reviewed in line with the new assortment strategy at a later date. In addition to footwear and accessories, the ranges will include an “everyday essentials” apparel offering.
Schneider added: “This approach will allow us to work together under one roof, with a strategic direction for our own assortment which will be more complementary to our partner brands. This is very much in line with our ambition of becoming the starting point for fashion. We are convinced that our strong customer focus and platform strategy are the right path to success.”
Zalando said a “significant number” of the 550 zLabels employees will be transferred to the Zalando Fashion Store business or will be offered comparable positions within Zalando.
Schneider said: “We have a lot of talent within the current zLabels team and it is really important to us to keep this talent within the Zalando family.”
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