C&A is ending its partnership with external digital marketplaces such as Amazon, Wehkamp and Zalando.
In the future, the Düsseldorf-based clothing provider will focus on establishing and expanding its own digital channels and businesses using internal capacities, C&A announced on Thursday. The company also focuses on the “C&A For you” membership program in order to strengthen customer loyalty.
“We are convinced that we have the potential to modernize and simplify our digital business, making it future-proof and continuing to grow,” said Wim Blaauw, Chief Digital and Transformation Officer at C&A.
Collaboration with marketplaces is below expectations
C&A is undergoing a comprehensive transformation in order to grow in a dynamic industry, according to the statement. Part of this also includes the continuous review and adjustment of one’s own business model in order to adapt to the market situation and customer wishes.
The partnerships with various online marketplaces contributed to the sales growth of the marketplace business, but did not lead to the expected margin contribution, which is why the cooperation has now been terminated. Discussions are currently underway with Amazon, Zalando and Wehkamp about a controlled conclusion of the collaboration.
C&A first began working with the Dutch platform Wehkamp in 2008 and later with the other partners. The goal at that time was to expand the customer base across Europe. Customers should then purchase directly via C&A’s digital and physical channels.