Achieving Greater Turnover: The Impact of Fuller Shopping Baskets on Zalando’s Financial Performance

30 May 2023

Due to an increase in average order value and enhanced logistical efficiency, Zalando achieved a significant improvement in its financial performance in the first quarter of this year. Unlike the previous year when the online clothing store suffered a substantial loss as customers shifted towards brick-and-mortar retail amidst the COVID-19 pandemic, Zalando managed to cut its losses in half.

In specific figures, Zalando reported a net loss of 38.5 million euros during the first quarter of 2023, marking a notable reduction compared to the 61.3 million euros loss incurred in the same period last year. Moreover, the company recorded a 2.3 percent increase in turnover compared to the previous year

To contribute to this positive outcome, the German company implemented cost-saving measures, particularly in marketing expenses. Additionally, customers demonstrated a higher average spend per order, reaching 57.40 euros, indicating a nearly 2 percent increase from the previous year. Although the number of orders slightly decreased, the implementation of more effective logistics contributed to savings in transportation costs.

Notably, Zalando’s Lounge department, which features outlet items, performed exceptionally well with a remarkable 33 percent increase in turnover. Furthermore, Zalando expanded its platform functionality to include a broader range of clothing companies, enabling customers to purchase products from multiple stores via the webshop.

The first quarter also saw a significant boost in the number of active customers, with an impressive increase of 2.4 million, bringing the total customer base of the webshop to 51.2 million. This growth underscores the success of Zalando’s strategies and its continued appeal to a broader audience.