Zalando wants to reinforce its partnership with brick-and-mortar stores because it is losing about 20-30 million transactions per year, which equals about €1 billion in sales, due to a lack of stock in its own warehouses. Zalando is already working with more than 1,000 shops in Germany, but wants to increase the number of partner stores to 70,000 in the next three to five years, and it wants to offer more click-and-collect options in the next 12 to 18 months. Zalando has has already announced an agreement with the largest German department store group, Galeria Kaufhof Karstadt, for the sale of the entire range of its fashion products in eight Kaufhof stores in Berlin, growing to 80 in Germany in due time. Under the pact, Zalando adds a commission on the items ordered on its platform, and Kaufhof delivers them to the customers from its physical stores. Recently, the big German based e-tailer started its first collaboration outside Germany by connecting with a Dutch store of Marco Polo, and wants to do the same in other countries as of this year.

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