Zalando turnover ‘only’ grew 36 % in fourth quarter | RetailDetail

Zalando turnover ‘only’ grew 36 % in fourth quarter

Zalando turnover ‘only’ grew 36 % in fourth quarter

Online shoe seller Zalando has seen its growth slow down, as its fourth quarter of 2013 'only' had a 36 % growth. The growth has been slowing down for some time now, from 70 % in the first half and 42 % in the third quarter.

Soft winter partly to blame for smaller growth

The soft European winter and the increased online competition from parties like H&M and Inditex (Zara, Massimo Dutti, Bershka) are two significant reasons as to why the turnover growth has been increasingly slower in the past few quarters, although it is also only natural that such huge growth rates slow down eventually.

 

Zalando’s fourth quarter resulted in a 550 million euro turnover, with total year turnover at 1.762 billion euro - a 52 % increase on 2012. Its core market (Germany, Austria and Switzerland) still haul in the bulk of turnover, with more than 1 billion euro.

 

Still operating at a loss

In this region Zalando has already managed to become break-even, but on a global scale, the company is still operating at a loss. The operational margin is - 6.7 %: a 0.5 % improvement compared to 2012, but that is still too small to ensure Zalando will become profitable all around. The operational margin has to continue to evolve towards positive numbers and to make that possible, Zalando wants to focus more on clothing with bigger profit margins.

 

According to the company, its online store welcomes more than 100 million visits per month, with a third (35 %) through smartphones and tablets. On a yearly basis, more than 13 million people bought something at Zalando, which is a significant increase over 2012's 9 million.

 

Zalando’s worth is estimated to be 3.83 billion euro, as Kinnevik (a Swedish investment firm with 36 % of Zalando’s shares) estimated its own stake to be worth 12.14 billion krona. The news about Zalando’s fourth quarter is all it wishes to divulge, as speculation about a possible IPO remains what it is now: speculation.

Questions or comments? Please feel free to contact the editors


Amazon now delivers packages to car trunks

25/04/2018

From now on, Amazon delivers orders to the trunk of your car. The retail and technology giant has given its Prime subscribers access to get packaged delivered to the trunk of their car, without any additional costs. The service is currently limited to the United States.

Dutch Beate Uhse division not bankrupt after all

05/04/2018

German Beate Uhse’s Dutch subsidiary has not gone bankrupt after all and will continue its activities in both Belgium and the Netherlands. The company revealed the information itself after bankruptcy rumours surfaced.

Amazon often cheaper than Dutch competitors

03/04/2018

Products that are available on both Dutch web shops and Amazon.de, are cheaper at Amazon in about half the cases. Not only do Dutch stores compete with Amazon.de, which ships to the Netherlands, but there are also rumours that Amazon.nl and Amazon.be will soon become more active.

Trump targets Amazon

03/04/2018

President Donald Trump has apparently targeted Amazon as his new enemy. He feels the retail giant is taking advantage of the U.S. Postal Service, something he wishes to remedy with a series of new rules and legislation.

Amazon undisputed ruler of French online world

29/03/2018

Amazon is the undisputed leader of the French online world thanks to a 5.6 billion euro turnover and a 19 % market share. According to Kantar Worldpanel, the overall online market in France was worth 30 billion euro in 2017.

Retail is main driver of artificial intelligence innovations

29/03/2018

Retail companies will invest about 2.76 billion euro in artificial intelligence this year. According to research firm IDC, they are the main driver for AI worldwide, ahead of the banking sector.