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Pumpkin Patch to sell kidswear on Amazon portal
06
Apr '12
Pumpkin Patch, the New Zealand-based children's clothing retailer, has entered into an agreement with online retailer Amazon to sell its merchandise in the UK, Germany and France.

In January this year, the retailer decided to wind up its loss-making operations in the UK and the US and instead shift its focus to Australian and New Zealand markets as well as on its wholesale and online channels.

Neil Cowie, Chief Executive of Pumpkin Patch said the type of partnership agreement the company had signed with Amazon is a significant part of its global multi-channel growth strategy.

He said such partnerships will allow Pumpkin Patch to foray in those markets where it would be difficult to penetrate on its own. He cited Germany and France as good examples of such cases.

Moreover, as such partnerships make use of the existing design, supply chain and other functions, the fresh capital investment is minimal, he added.

However, he does not expect Pumpkin Patch to make huge profits from the Amazon deal before 2014.

In the six months ended January 31, 2012, the kidswear retailer posted a loss of NZ$ 30 million compared to profit of NZ$ 8 million in the year ago period, owing to costs incurred in closing loss-making UK and US stores. During the six-month period, however, sales rose by 17 percent year-on-year to NZ$ 161.1 million.

Last month, the company signed a distribution agreement with Liverpool, a Mexico-based departmental chain store, which will sell Pumpkin Patch products in 24 of its 79 stores in 2012.

Pumpkin Patch also entered into a separate agreement with its Middle East partner Jawad Business Group, which will be retailing Charlie & Me clothing products in 25 standalone stores in the Middle East.

Fibre2fashion News Desk - India


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