Image source: Zalando
German fashion retailer Zalando SE (OTC: ZLNDY) has teamed up with French beauty chain Sephora for a new strategic partnership “to create the ultimate online prestige beauty destination” on Zalando.com, the companies announced Tuesday.
The tie-up will give Zalando shoppers access to Sephora’s assortment of several thousand beauty products from more than 300 prestige and exclusive brands. According to Zalando, the partnership will be rolled out in Germany during the fourth quarter and expand to other markets next year.
No financial details were disclosed.
Zalando, Europe’s biggest online-only fashion marketplace, sells more than 4,000 brands to 42 million active customers in 20 markets across the region.
According to Reuters, Zalando’s sales skyrocketed amid COVID-19-related lockdowns, with revenues in the January to March period up 47% to 2.24 billion euros ($2.67 billion).
Sephora, a unit of LVMH Moët Hennessy Louis Vuitton, operates in 35 countries and has 2,000 stores globally, with roughly half in Europe.
In a statement, Zalando co-chief executive officer David Schneider said, “Beauty represents a huge and exciting opportunity for us, with the online beauty market still largely untapped in Europe.”
“Our partnership with Sephora, the go-to place for many beauty fans, will elevate the beauty offering for our customers and [enable] them to shop the most sought-after and exclusive beauty brands while enjoying Zalando’s excellent customer experience and convenience,” Schneider said.
Sephora chief executive officer Martin Brok said, “This partnership illustrates our ambition to relentlessly innovate to delight our customers better than anyone else. Zalando, which today is the most successful online fashion platform in Europe, is the ideal partner for us to continue to inspire customers. By bringing together fashion, accessories, and prestige beauty under one roof, we will offer them the best destination to ‘look great and feel great’ in a unique premium environment.”
Brok added, “This partnership is a key step in our European growth strategy and illustrates our vision for the future of Beauty and Retail”.
The move comes as Sephora is gearing up to launch a separate partnership with Kohl’s Corporation as part of a larger expansion effort in North America.
By fall 2021, Sephora plans to open beauty products departments in 200 Kohl’s locations across the US.
Source: Equities News