Online fashion retailer Zalando is once again adjusting at a more relaxed pace after strong growth during the Corona crisis. “We are witnessing a clear return to normal,” Zalando co-founder and boss Robert Gentz said on Wednesday during the presentation of third quarter sales figures. “Most of the retail business is back to normal.” For the coming year, he expects the entire fashion industry, including stationary retail, to return to pre-crisis demand levels, Gentz said.
As an internet fashion retailer, Zalando has benefited greatly from the online boom during the ongoing pandemic and has, in some cases, seen rapid increases in sales of up to 50% in each quarter. Now, in the third quarter, growth continues, but at a slower pace. Revenue between July and September of this year was around 2.3 billion euros. This was about 23% more than in the same quarter of the previous year
The portal had 46.3 million customers during the same period. Compared to the previous year, the number increased by more than ten million. It is becoming evident that new customers will remain loyal to the platform, Gentz said. In the coming year, the focus will be on building trust and strengthening customer relationships.
Zalando has not noticed any bottlenecks in deliveries, which are currently worrying the sports and sneakers industry especially due to plant closures in China and Vietnam. “We expected such restrictions,” Gentz said. This is why the warehouses are well filled, at least during the winter.
However, in the coming year, the wait times for some products could be even longer. Even though Zalando, as a platform with many partners, has better answers to these problems than many competitors, says the co-founder.
The group has extended its offer to six new countries in recent months. These are the three Baltic States as well as Croatia, Slovenia and Slovakia.
This resulted in high marketing costs resulting in red numbers. The result is a loss of 8.4 million euros. In the previous year, when the company benefited from low customer discounts, among other things, Zalando made a profit of 58.5 million euros.
Zalando is sticking to its sales forecast for the current year and continues to expect growth of 26-31%. Given the return to normal in the fashion industry, a constant of 20 to 25 percent is realistic over the medium term, Gentz said.