M&S to expand Zalando partnership

Marks and 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.

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 and 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 two to three days.

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 has seen rapid growth online, with Zalando sales up 131% compared with the previous year.

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 operating models, which are capital-light.

ZEOS’ operational infrastructure will support M&S’ online growth, delivering an expected sales uplift of up to 30%, whilst also reducing logistics cost by up to half, and improving operating margins.

Mark Lemming, managing director of International at M&S, said: “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.

“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.”