According to a media report, the online fashion retailer Zalando is said to have prepared an expansion into the USA starting next year. But the plan is said to be “on hold” or paused for now.
Under the name “Project Kangaroo,” Zalando plans to expand into the United States starting in 2023, Business Insider reported on Thursday. The business magazine claims to have learned from internal sources that the investment of a three-digit million sum was planned.
Expansion not excluded
More than a hundred employees are said to have worked on the plans under the leadership of product manager and American Jim Freeman. But for the time being, given the difficult market environment, they are paused or “on hold,” reports Business Insider. But the group is still sticking to the plans for 2023. Zalando lowered its forecast for the year in June after demand had unexpectedly weakened.
Zalando itself did not confirm the media report when asked, but did not rule out expansion outside of Europe either. “We are constantly looking for ways to improve our offering, including possible new categories and regions. We believe there will also be opportunities to grow beyond the European continent in this context,” a spokeswoman told FashionUnited on Friday. “In the current economic environment, we are concentrating on serving our customers and partners in existing Zalando stores in the best possible way.”
Zalando is unknown in the US
Chief Business and Product Officer Jim Freeman worked at Amazon before joining Zalando, where he was responsible for Prime Video and Alexa. He is said to know the US market well and has his sights set on entering the north-east of the country, where the cities of Boston and New York City are located. In order to make the fashion retailer well known in the USA, marketing with the help of influencers is planned.