After just two years, Zalando and Sephora are ending their partnership as they concluded that the potential of strategic objectives would be best realized outside the current collaboration.

Announced in June 2021, the partnership aimed to create the ultimate online prestige beauty destination, connecting 300 Sephora brands to millions of Zalando customers. Initially launched in Germany in Q4 2021 and expanded to Italy in 2022, the scheme was intended to roll out across Europe, strengthening Sephora's online presence in the region with a new audience. For Zalando, the partnership gave it a deeper reach into the beauty segment.

"Given the extremely dynamic business environment we are experiencing in the EME region, we have taken the decision to refocus our efforts and resources on our core business and our own distribution networks. After launching the pilot projects in Germany and Italy in 2021 and 2022 respectively, we learned a lot from each other, thanks to constructive collaboration and a very positive response from customers. However, after evaluating the two pilot projects and the next steps, we came to the joint conclusion that our potential is best realised outside the current partnership. We have therefore taken the joint and friendly decision to end our collaboration in the coming months," Sephora explained in a press release.

Zalando said in a statement, “Partnering up with Sephora two years ago was—at the time—the best way for us to accelerate on this ambition, particularly with regards to welcoming prestige beauty brands on Zalando. However, after evaluating both pilots and next steps, we came to a joint conclusion that our full potential in beauty is best realized outside of the current partnership. We have therefore come to a mutual and amicable decision to wind down the collaboration with Sephora in the next few months and focus on direct partnerships with beauty brands in Germany and Italy—in line with the model we continue to have in the rest of our beauty markets.”

In Q2 earnings, Zalando mentioned deepening meaningful relationships with beauty brands like Lancôme, Mugler, and Shiseido, offering them exposure in more markets.