Close this search box.

EDITORIAL Next, Zalando and Adidas on brand relationships

Next's own brand sales have declined from last year's peak – but sales of third-party brands are growing quickly. Image: Next/PR Shots

In today’s InternetRetailing newsletter we’re reporting on progress as a growing number of businesses shift their business models from retail towards becoming ecommerce platforms. In doing so, retailers are making their platforms a place to showcase a range of brands and hope to boost sales as a result. At the same time, brands are selling more of their own products direct to customers. The result is to give shoppers a wide choice of ways to buy their favourite brands and discover new ones. But retailers and brands alike are operating in an economy that is being affected by rising inflation, the effects of Covid-19 on supply chains and the Russian invasion of Ukraine at the same time as they shift their strategies to reflect the changing way in which shoppers are buying.

Next shows in its latest, first quarter, trading update that its third-party brand business grew faster online than its own Next brand in the first quarter of its financial year. The retailer has previously said that it is now shifting towards becoming an ecommerce platform, with the Next brand just one of the many that it sells.

Zalando says that in the first quarter of its current financial year its third-party brand business accounted for almost a third of its fashion GMV – a figure that it aims to get to 50% by 2025. However, the transition towards becoming a platform has dented both sales and profits at the business, and it will now work to get ever closer to its shoppers at a time when buying habits are changing.

Meanwhile, sportswear brand Adidas says it’s seeing strong consumer demand, but a shortage of products as a result of Covid-19 lockdowns. Those shortages were particularly acute in its EMEA region, although sales there still rose. The brand has struck an interesting partnership with Foot Locker, which is now its main brand partner for basketball.

Séraphine says it’s not immune from pressure as sentiment weakens across Europe following Russia’s invasion of Ukraine and as the cost of living rises and it has lowered its full-year profit expectations once more.

The latest footfall figures suggest that shoppers were slightly less likely to go to the shops in April than in March – while the numbers visiting UK stores are still behind pre-pandemic levels. We’ll be looking to see why

In today’s guest comment, Paul Childs of Moloco argues that retail media is the final frontier for advertising.

Read More

Register for Newsletter

Group 4 Copy 3Created with Sketch.

Receive 3 newsletters per week

Group 3Created with Sketch.

Gain access to all Top500 research

Group 4Created with Sketch.

Personalise your experience on