Online retailer Zoot closes nearly half of its pick-up points

Online retailer Zoot closes nearly half of its pick-up points

Published at: 2019-03-05 10:40 | Author: CIJEurope.com
The failing online fashion retailer Zoot is shutting down many of its pick-up points in an effort to cut costs. The pick-up points helped build the company's sales to over CZK 1bn annually, but they were a major drain at the same time. In order to build its customer loyalty, Zoot encouraged them to order multiple sizes of the same garment and return the ones they didn't need at one of its 28 pick-up points. This led to a return rate of over 70 percent, a free service that produced huge costs for Zoot. Twelve of the pick-up points have already been closed, a moved Zoot says will have no impact on sales. The company is currently trying to use a three-month period of court protection from its creditors to restructure its business, but it won't be easy to wipe out debts of nearly CZK 500m. Raiffeisenbank lost patience with the loss-making venture at the end of last year and refused to extend an investment loan, leading to the debt being sold to Natland. Director Lukáš Uhl told Idnes.cz that this move has helped his company in some ways. "Thanks to an operations loan from Natland we starting buying goods again," he said.

Similar Stories:

Robot seeks location in Bosnia for new shopping center
The Bosnian based company Robot is in discussions with officials in the northeastern Bosni  »
DM opens store at BBI Center in Sarajevo
Bosnia & Herzegovina  ♦  DM opens store at BBI Center in Sarajevo
German retailer DM-drogerie markt opened a new store at the BBI Center in Sarajevo. The ne  »
Stokrotka opens store in Sukcesja
Stokrotka has opened a 1,100 sqm store at the Sukcesja shopping center in Łódź. The gro  »
European retail park floorspace increases by 2.2% in 2018
European retail park floorspace increased by 2.2 percent to 50.1 million sqm in 2018, with  »
When it comes to the development of smartphone apps for the retail sector, most of the act   »
Rumors that Tesco is on the way out of Poland are certainly nothing new, but another Briti   »
You’ve been expanding your portfolio as quickly as possible. How are you using the incre   »
In a deal that’s reportedly still being finalized, Jeronimo Martins and Auchan will take   »