Zalando to discontinue private label business zLabels
Global e-commerce giant Zalando is to discontinue its private label zLabels as it bundles all of its private labels and partner brand assortment under one roof.
zLabels was created in 2010 to fill gaps in the Zalando offer that were not covered by its partner brands. However as the business has grown and more brands have come on board, it has decided to "refine our assortment including our own labels,” said co-CEO David Schneider.
Starting in spring/summer 2020, Zalando’s private labels will focus on customers’ everyday essentials for our apparel offering and continue with a focused footwear and accessories assortment. The 11 private label brands will be kept for the time being and reviewed in line with this new assortment strategy at a later point.
“This approach will allow us to work together under one roof, with a strategic direction for our own assortment which will be more complementary to our partner brands. This is very much in line with our ambition of becoming the starting point for fashion. We are convinced that our strong customer focus and platform strategy are the right path to success,” said Schneider.
The 550 staff from zLabels will be offered alternative employment within the group.