NZ’s Pumpkin Patch Signs up for Amazon Experience

The Auckland-based children’s clothing brand Pumpkin Patch began its existence as a mail-order business in 1990. It grew to incorporate a chain of bricks-and-mortar stores, culminating in an organisational network that spans the pacific.

While Pumpkin Patch has now been established in the US  and UK for the best part of a decade, the brand continues to seek opportunities to expand. In keeping with this outlook, Pumpkin Patch has most recently signed a deal with Amazon to sell its products via the retail giant’s website.

“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, CEO of Pumpkin Patch. “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.”

The retailer produced a loss of $30 million in the six months that finished as of January 31, down from a profit of $8 million in the previous year. On the other hand, shares have swelled by 59 percent this year, now trading at $1 as sales have continued to grow regardless of the loss in profits.

The Amazon deal follows on the heels of a similar deal signed with Mexico’s leading department store, Liverpool. By selling on Amazon, Pumpkin Patch hopes to expand its footprint into France and Germany, as well as strengthen its position in the UK, where bricks-and-mortar stores have been struggling.

“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,” said Cowie.

For further information on how you can successfully expand your own business’s reach beyond national borders, see Power Retail’s Special Report #21: Growing Globally.

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