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Farfetch to stop providing e-commerce software to retailers

Chloe Burney
23 August 2024

Farfetch, the luxury fashion retailer which Coupang acquired in December 2023, is closing its ‘Farfetch Platform Solutions’. This service provides online shopping platforms for retailers including Harrods.

South Korean e-commerce giant Coupang, which bought the troubled Farfetch for a mere $500 million, said that it had decided to shut down Farfetch Platform Solutions, according to an email seen by WWD.

Farfetch Platform Solutions (FPS) was formed in 2015 and provides online shopping tools for online retailers, such as Manolo Blahnik, the first brand on board. The idea for it was conjured up by the retailer’s Founder and CEO, José Neves, who left the business in February. However, it's understood that Farfetch Platform Solutions never achieved the scale or momentum that José Neves envisioned.

Stephen Eggleston, Farfetch’s CCO, said in the email: "Over the past several months, we have continued to assess the strategic priorities for Farfetch, and it is clear that the Farfetch Marketplace has always been the core of our offering and will be the priority focus going forward."

FPS, however, was already losing business before Coupang decided to axe this leg of the business. More brands were taking their e-commerce operations in-house, such as Emilio Pucci, Proenza Schouler, Phillip Lim and Neiman Marcus Group, who all left FPS over the past year.

Plus, Kelly Kowal, Head of FPS, left the company at the beginning of 2024 following Coupang’s acquisition of Farfetch. This also sparked speculation that the service was on its way out.

The closure of FPS comes as Farfetch is dragging down parent company Coupang’s operating losses. The South Korean e-commerce giant reported a net loss of $105 million in the second quarter that ended in June.

A spokesperson for Farfetch said: "Our disciplined investment and operational excellence enable us to deliver exceptional shopping experiences to our customers, providing them with the best selection, service, and savings.

"With our focus on the Farfetch marketplace, we will continue building the best luxury experiences for customers, brands, and boutiques."

Read TheIndustry.fashion's feature 'Farfetch poised for "steady and thoughtful" growth under Coupang? Let's hope so' here.


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