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Three ways Zalando plans to keep growing

More customers shopped more often at Zalando in the first quarter of its financial year, helping it to revenues of €980.2m in the first quarter of its financial year – 23.1% up on the same period last year. Earnings before interest and tax reached €20.3m,

flat with the previous year. Here’s how the retailer plans to keep growing.

Win more customers

The retailer, a Leading retailer in IREU Top500 research, plans to carry on expanding its customer base, which reached more than 20m active customers by the end of the quarter. Co-chief executive Rubin Ritter said: “Our key priority is profitable growth and that is what we delivered on in the first quarter. We are determined to win further market share and reach more customers across Europe.”

Investing in the experience

To that end, says Ritter, Zalando will “continue investing in the consumer experience, our technology and logistics infrastructure, as well as our brand partner proposition.”

Improved fulfillment

Zalando has opened new fulfillment centres and has invested in same-day delivery and instant eturns. This, it says, is part of improving the customer experience. Fulfilment costs have increased and there has been “a small decrease” in gross profit margins but this, says Zalando, has been offset by “more efficient marketing activities” that have boosted brand awareness and make for a loyal customer base.

Earlier this month, Centiro said that Zalando was working with it to explore opportunities around its new Centiro Delivery Options, which enables retailers to tailor the online delivery services that they offer different segments of their customer base.

Dr Jan Bartels, VP logistics products at Zalando, said at the time: “As our business grows, it’s crucial being able to on-board carriers quickly and at the same time possibly deal with return volumes. Working with Centiro, we aim to provide our customers with greater choice and flexibility.”

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