GMS, the German voluntary group of shoe retailers, announced the end of a partnership with Schuhe24, the German online marketplace, for the sale of the products of its affiliated shops. GMS noted that the gross margin on the sale of new products through the online platform reached a maximum of 5 percent, due to variable costs, compared with margins of between 40 and 50 percent in the physical shops. Depending on the price or the conditions of the purchase, online sales may even turn into a negative gross profit, which makes it difficult to cover the fixed costs, GMS said. Started in 2017, the partnership initially had the goal of reducing the risks of building an online sales platform for GMS' associated firms, while expanding their customer base. Online marketplaces outsource the risks to the suppliers of the goods, including brick-and-mortar retailers, GMS said.

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