Covid-19: Zalando reports surge in online sales over Easter

Zalando has reported a surge in items sold on its platform over Easter, an increase of more than 100% compared with last year. This follows moves by the online fashion retailer to allow partner brands and businesses easier access to the Zalando eCommerce platform during Covid-19, reaching its 32 million active customers.

Over the Easter weekend, more than one million items were sold by Zalando partners through the partner platform. In addition, Zalando’s recent decision to make its Connected Retail Program more accessible for brick and mortar stores has helped these retailers sell 35,000 items duringthe four-day weekend.

The figures provide some encouraging signs for the fashion retail industry, which has been hit particularly hard by the Covid-19 pandemic.

Rubin Ritter, Zalando co-CEO, said: “Over the past weeks, we have taken decisive action to protect our employees and our company from the impact of the coronavirus. Going forward, we will focus our efforts and our investments on accelerating our platform strategy throughout this crisis. For the fashion industry, the time to go online is now, and we can make a difference by supporting our partners to grow their business on our platform.”

In preliminary figures for Q1 of 2020, Zalando’s GMV growth is expected to be 13.1-14.3%, with revenue growth at 10.1-11.6%. There was a negative GMV growth of -8% year-on-year in the three weeks following 9 March, as Covid-19 developed, but this has begun to grow again in the first two weeks following 30 March. However, the brand expects an adjusted EBIT of -€90 million to -€110 million euros in Q1.

Zalando remains confident of navigating the current crisis, with access to a current cash position of €1.03 billion and planned savings of around €350 million.

David Schröder, Zalando, CFO, added: “We look back at a challenging quarter. Nevertheless, we have managed to grow our business, and the first weeks of April make us optimistic for the second quarter.”