Zalando – from corona loser to winner?
Zalando is expected to grow despite corona, its top 10 URLs generated over €5 billion in 2019
In the current corona crisis, more consumers than ever have found out how convenient and fast online shopping can be. At the beginning of the COVID-19 outbreak, several eCommerce players in the non-FMCG field still feared a long-term negative impact of the insecurity that the worldwide health crisis brought along for people’s personal finances. Indeed, well-established eCommerce players recorded steep slumps in demand at first. While 2020 had started off with strong growth for online Fashion giant Zalando for example, the German eCommerce company concluded Q1 2020 with a negative operating profit following devastating sales developments in the month of March. The situation recovered quickly, though – at the beginning of May, Zalando already announced an expected revenue plus between 10% and 20% for the overall financial year 2020. Although these new figures are below what Zalando expected in the February guidance, they still exceed analyst expectations. For the second quarter, Zalando expects a growth in revenues of 16% and an operative plus of €104 million – the concrete figures are expected by mid July.
In 2019, Zalando generated overall net sales of about €6.5 billion. Its top 10 URLs accounted for more than €5 billion:
Unsurprisingly, Zalando’s best-selling URL is its regional flagship zalando.de: The German online store contributed 29% to the company’s eCommerce net sales1 in 2019, generating a total of €1.6 billion in net sales. Second-placed zalando.ch comes at quite a distance, with 2019 net sales of €788.5 million. Ranks 3 to 5 are very close together – zalando.it, zalando.fr., and zalando.nl produced net sales of €461.8 million, €457.7 million and €451.8 million in 2019, respectively. This corresponds to a share of about 8% that each of the three URLs contribute to Zalando’s overall eCommerce net sales. Ranks 6 to 10 each generated net sales of under €250 million in 2019.
1: Revenue of Zalando’s “Fashion Store” segment
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