Marks & Spencer has signed a partnership agreement with ZEOS – the B2B unit of Zalando – to fulfil its entire online direct-to-consumer (DTC) orders in continental Europe, covering 21 markets.

This extended partnership builds on its initial collaboration with Zalando Fulfilment Solutions (ZFS) in 2022 for its European marketplace business in Europe, fulfilling orders placed directly through Zalando, About You and Amazon.

In the last quarter, M&S says it has seen rapid growth online, with Zalando sales +131% year on year.

“Having reset the International business to reshape M&S for global growth, we’re focusing on bigger, better partnerships, which enable us to bring the best of M&S to the world,” commented Mark Lemming, Managing Director of International at M&S.

The new agreement will enable M&S to take advantage of ZEOS’ inventory efficiency, creating one single stock pool as well as an advanced order management system for Fashion, Home & Beauty products sold in Europe from early next year. 

By optimising ZEOS’ local fulfilment network, the customer shopping experience online will also be elevated with faster delivery and returns processes, reducing delivery times by to two to three days.

M&S says its ambition for its international business is to build a global omnichannel business, utilising the expertise and infrastructure of strategic partners, through capital-light, scalable operating models.

ZEOS’ operational infrastructure will support M&S’ online growth, delivering an expected sales uplift of up to 30%, while simultaneously reducing logistics costs by up to half and improving operating margins. 

“Our partnership with Zalando supported us as we begun to scale our online growth over the last three years and now we’re taking the next step, leveraging ZEOS’ operational infrastructure to scale our online business in Europe further. This is a key strategic market where our trusted brand and stylish Fashion, Home & Beauty offer resonates with customers,” added Lemming.