Pumpkin Patch to sell products on Amazon
BUSINESSDESK: Children’s clothing retailer Pumpkin Patch has teamed up with online retailer Amazon to sell its products in Britain, France and Germany.
The Auckland-based company has entered an agreement to sell its products through Amazon’s website.
Shares in the retailer have surged 59% this year and are trading at $1.
“These types of relationships are an important part of our international multi-channel growth strategy as they allow us to enter markets that would be hard to enter on our own,” chief executive Neil Cowie said.
“In addition, they leverage off our existing design, supply chain and other support functions so the capital investment we have to make to establish the relationship is minimal.
“While we don’t expect to see noticeable earnings from the Amazon relationship until the 2014 financial year it is strategically an important step for us,” he said.
The retailer turned a loss of $30 million in the six months ended January 31, from a profit of $8 million a year earlier on costs to close unprofitable US and UK stores last year.
Sales rose 17% to $161.1 million.
In March, the company announced plans to enter its 21st market signing an agreement with Mexico’s leading department store, Liverpool.
It will sell Pumpkin Patch products in 24 of its 79 stores this year.
The company’s Middle East partner, Jawad Business Group, will sell its Charlie & Me products in 25 stand-alone stores across the region over the next 12 months.