4 Apr 2012

Pumpkin Patch in deal with Amazon

7:53 pm on 4 April 2012

Pumpkin Patch has struck a deal to sell its clothing through Amazon's websites in Britain, France and Germany.

The company is moving away from selling its wares in stores and towards more wholesale deals and online retailing.

Chief executive Neil Cowie says Amazon's huge market presence allows the company to enter markets which would be hard to enter on its own.

Pumpkin Patch recently decided to close all its stores in Britain and the United States and focus on international wholesale and franchise deals instead.

Mr Cowie says the deal uses Pumpkin Patch's existing design, supply chain and back-office functions, and will require only a small capital investment.

Despite that, Mr Cowie says the new deal will not contribute a significant amount to earnings until the 2014 financial year.

Shares in Pumpkin Patch rose 10 cents to $1.12 on Wednesday. The stock has gained almost 72% so far this year.