Zalando could soon see leading tech companies like Amazon and Alibaba to consider a take over bid after its share prices nearly halved in the last six months.
According to analysts at German investment bank Baader Helvia, the online retailer currently represents a bargain for potential investors, and would immediately make its buyer the largest online fashion house in Europe.
Despite Zalando reporting a £34 million loss in the three months to September, a period in which it also announced two profit warnings, the retailer still represents a solid investment for investors, according to Baader Helvea’s Volker Bosse.
Its huge reserves of data as a leading online retailer, boasting information on more than 25 million customers, 2.5 billion website visits a year and a market-leading online platform all make the site an enticing prospect for acquisition.
Since the start of the year, Zalando’s share price has dropped 42 per cent to €25.45 thanks to the run of poor results.
This means the retailer could be snapped up “cheap” by any company with the capital and retail experience to manage it, which reportedly could also include H&M.