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 online sites. In the last quarter, M&S has seen rapid growth online, with Zalando sales up 131%.

The new agreement will enable M&S to take advantage of the  inventory efficiency of Zeos, creating a single stock pool as well as an advanced order management system for its Fashion, Home and Beauty products sold in Europe from early next year.

By optimising the local fulfilment network of Zeos, 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 operating models, which are capital light. The operational infrastructure of Zeos will support M&S online growth, delivering an expected sales uplift of up to 30%, while also reducing logistics cost by up to 50% 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 M&S International managing director Mark Lemming. “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 to scale it in Europe further. This is a key strategic market where our trusted brand resonates with customers.”

Last year, M&S reset priorities for its International business to provide stronger foundations for long-term growth.

www.corporate.marksandspencer.com