The German department store, Galeria Karstadt Kaufhof have teamed up with Amazon and Zalando in their ongoing aim to expand their product offering via collaborations. The duo will start working with Galeria Karstadt Kaufhof in June, reported Internet World.
The team up is designed to entice customers to the struggling department store by blending the convenience of omnichannel shopping. The pilot projects will take place in selected Galeria brances ahead of the wider rollout – if proved to be successful.
In 2017, Galeria Karstadt Kaufhof began working with Amazon. The partnership saw Amazon Germany offering shoppers to pick up their parcels from Amazon Lockers located in Galeria branches.
In June, Amazon will be offering consumers to collect Galeria goods in the service centres of the department stores.
This June will see Zalando and Galeria Karstadt Kaufhof working together for the first time. The collaboration will see Galeria products being offered on Zalando marketplaces. The department store will, in turn, offer Zalando goods in their selected branches. This strategy will see both businesses’ product offering exposed to a larger pool of customers.
How will SMBs benefit from this?
The move is part of Zalando’s focus to solidify themselves primarily as a marketplace rather than a retailer. Zalando say that in five years they expect merchants trading on their platform to account for 40% of the business’ revenue. This suggests that the fashion-focused marketplace might release more services and tools to attract new traders to their platform, creating a better support system for existing merchants on Zalando.