Berlin-based etailer Zalando is to close its private-label business as it reviews its product assortment strategy.
The separate private label business, operating as zLabels, currently employs 550 workers. The company said a “significant number” would be moved to the wider branded part of the business or otherwise offered comparable positions within Zalando.
zLabels will cease operating on 1 April, but Zalando will continue to create some private-label lines. From spring 20, its private-label brands will focus on everyday essentials across clothing, footwear and accessories and will be reviewed at a later point in line with these changes.
The move has been announced as part of a shift to reviewing the offering of its own-brand clothing and partner brands holistically.
“zLabels was founded in 2010 in order to fill the ‘blank spots’ in our assortment, offering our customers products that were not being provided by our partner brands,” explained co-CEO of Zalando, David Schneider. “In the last 10 years, our business has become more attractive to both customers and brands. Since we are committed to our platform strategy, and as we continuously onboard new brands and verticals, we decided to refine our assortment including our own labels.”