What: M&S is expanding its partnership with Zalando to use the ZEOS logistics solution for its entire online direct-to-consumer business in continental Europe.

Why it is important: The move highlights the growing importance of scalable, capital-light models and technology-driven logistics in international retail expansion.

M&S is set to deepen its collaboration with Zalando by adopting the ZEOS logistics platform for all its direct-to-consumer online operations across continental Europe. This strategic shift follows a period of rapid online growth, with M&S reporting a 131% year-on-year increase in Zalando-facilitated sales. By integrating ZEOS, M&S aims to streamline inventory management through a unified stock pool and advanced order management system, covering fashion, home, and beauty products. The partnership is expected to enhance the customer experience by reducing delivery times by up to three days and improving returns processes. M&S anticipates that these operational improvements will drive a sales uplift of up to 30%, halve logistics costs, and boost operating margins. This move is central to M&S’s ambition to build a global omnichannel business using scalable, capital-light models and leveraging the expertise of strategic partners to support international growth and operational efficiency.

IADS Notes: The expanded logistics partnership between M&S and Zalando, leveraging the ZEOS B2B solution, reflects a broader acceleration in cross-border e-commerce logistics across Europe, as highlighted by Zalando’s 2024 results and its ongoing fulfilment innovation with Next (March 2025). This move is emblematic of a wider industry trend, with the European E-commerce Report (October 2025) noting that technology-driven logistics and AI-powered inventory management are delivering tangible gains in profitability and customer experience, though only a select group of retailers have managed to scale these solutions effectively. M&S’s strategy to build a capital-light, scalable omnichannel business is further underscored by its focus on digital resilience and supply chain modernisation following a significant cyber-attack, as detailed in Drapers (September 2025) and Retail Week (July 2025). The partnership with Zalando not only positions M&S to cut delivery times and improve margins but also aligns with the industry’s shift toward intelligent operations and collaborative models that drive operational efficiency and international growth.

M&S taps Zalando’s B2B unit to handle European orders