Zalando has forecast a return to growth this year as it revealed it will be opening up its logistics business to more players, describing it as a new evolved “pan-European ecosystem”, in a bid to boost to its performance.
The German fashion giant said the updated ecosystem strategy would help the business drive growth through 2028 after its gross merchandise volume slipped 1.1% to €14.6bn in 2023.
It plans to boost its B2B business by “opening up its logistics infrastructure, software and service capabilities to be a key enabler for ecommerce transactions of brands and retailers,” regardless of whether they take place on or off the Zalando platform.
The retailer also also expects to return to sales growth of between 0% to 5% this year, after a 1.9% drop to €10.1bn in 2023.
Zalando co-CEO Robert Gentz said: “Our ambition is to return to strong growth and continue our margin expansion, as reflected in our new mid-term guidance.”
“In B2C we will move beyond transactions by giving our 50 million customers across Europe even better quality experiences and products that fit their lifestyle and personalised content, inspiration and entertainment.
“In B2B, we will power the businesses of partners and merchants on and off Zalando, leveraging our unique logistics infrastructure, software and services.”
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
The online business said that in the mid-term, it sees the B2B growth vector developing into a multi-billion-euro business
It said it would differentiate by offering “the best possible shopping experience in fashion and lifestyle, enhancing its role in customers’ lifestyle journeys,” by elevating categories such as sports and kids and family, and by offering personalised inspiration and entertainment.
Zalando co-chief executive David Schneider said: “Our B2C strategy around quality, lifestyle and inspiration clearly sets us apart from the competition and will continue to win us market share.
“Our customers want even better usability, convenience, and digital experience. But beyond that, new digital-first generations of customers want inspiration and entertainment while shopping online. Using our data and technology, we can integrate engaging content into ecommerce and enable personalised conversations with our customers. There is a massive opportunity to engage with customers on a whole new level.”
Zalando has struggled with weakening demand after a growth boom during the pandemic, as consumers grapple with surging inflation.
Click here to sign up to Retail Gazette‘s free daily email newsletter
