Marks & Spencer has signed a partnership agreement with ZEOS, the B2B unit of Zalando, to fulfil its entire online direct-to-consumer orders in continental Europe, covering 21 markets.
M&S first partnered with Zalando Fulfilment Solutions (ZFS) in 2022 for its marketplace business in Europe, for orders placed directly through Zalando, About You and Amazon. In the last quarter, M&S saw rapid online growth, with Zalando sales up 131 percent vs LY.
The new agreement will enable M&S to take advantage of ZEOS’ inventory efficiency, creating one single stock pool as well as an advanced order management system for Fashion, Home & Beauty products sold in Europe from early next year.
By optimising ZEOS’ local fulfilment network, the customer shopping experience online will also be elevated with faster delivery and returns processes, cutting delivery times by up to 2-3 days.
The ambition for M&S’s International business is to build a global omnichannel business utilising the expertise and infrastructure of strategic partners through simple, scalable, capital-light operating models.
ZEOS’ operational infrastructure will support M&S’ online growth, delivering an expected sales uplift of up to 30 percent, whilst also reducing logistics costs by up to half, and improving operating margins.
“Having reset the International business to reshape M&S for global growth, we’re focusing on bigger, better partnerships, which enable us to bring the best of M&S to the world,” said Mark Lemming, Managing Director of International at M&S.
“Our partnership with Zalando supported us as we began to scale our online growth over the last three years, and now we’re taking the next step, leveraging ZEOS’ operational infrastructure to scale our online business in Europe further. This is a key strategic market where our trusted brand and stylish Fashion, Home & Beauty offer resonates with customers.”
Last year, M&S reset priorities for its international business to provide stronger foundations for long-term growth.
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