Wednesday 4th April 2012
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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 percent 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 Jan. 31, from a profit of $8 million a year earlier on costs to close unprofitable US and UK stores last year. Sales rose 17 percent 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 Liverpool’s 79 stores this year.
Separately, 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.
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