Clothing retailer Pumpkin Patch, hoping to increase its online sales, has teamed up with Amazon to sell its products online in the UK, France and Germany. Photo / Mark Mitchell
Pumpkin Patch, the children's clothing retailer, has teamed up with online retailer Amazon to sell its products in the UK, France and Germany.
The Auckland-based company has entered an agreement to sell its products via Amazon's website. Shares in the retailer have surged 59 per cent this year and are
currently 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," said Neil Cowie, chief executive. "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," Cowie said.
The retailer turned to 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 per cent to $161.1 million.
