Monday March 15, 2021
Online shop benefits in a crisis
Zalando's growth cannot be stopped
In contrast to the closed retail trade, the online fashion shop Zalando is growing massively in sales. More new customers and fewer returns increase sales in the Corona year 2020 by over 20 percent. But the fashion company has bigger plans.
The business of the online fashion retailer Zalando continues to flourish in times of Corona. In 2020, sales jumped 23.1 percent to eight billion euros because the number of new customers grew extraordinarily, as the Berlin company announced. The Zalando share also gained five percent in floor trading.
In the current year, the fashion retailer wants to top the successes from the Corona year. A sales increase of between 24 and 29 percent to 9.9 to 10.3 billion euros is targeted. Zalando benefits from the fact that more and more people are buying their clothes on the Internet and have them delivered to their homes in view of the fact that shops are closed in many places. In October, the company, which was founded in 2008, raised its annual forecast for the second time and now even exceeded this forecast in terms of sales. Adjusted operating profit (EBIT) almost doubled to just under 421 million euros after almost 225 million euros in 2019. Zalando benefited from the fact that fewer customers returned goods than was previously the norm. This reduced the return costs.
At the beginning of December, the group reported that the total value of sales on the platform had increased by 35 percent in Cyber Week and that it had gained more than a million new customers. In addition, the partner program and the number of participating businesses have increased significantly.
Zalando receives fees through the partner program, which are essentially brand shops on the Zalando website. Because of the Corona crisis, the group has greatly improved the platform conditions for retailers in 2020 and waived commission fees until the first quarter. In addition, Zalando is planning to invest more than in 2019 and is now planning to invest 350 to 400 million euros – primarily for logistics and technology.
The European number one is currently changing from a pure trader to a platform provider that charges commissions and earns money with logistics services. The group, which is now considered a DAX candidate, announced that it will soon be giving a detailed insight into the past financial year.
. (tagsToTranslate) Economy (t) Zalando (t) Growth forecast (t) Growth (t) Stock trading (t) Online shopping (t) Corona crisis