- Reuters
Online retailer Zalando returns to growth thanks to premium brands
(Reuters) -Online fashion marketplace Zalando returned to growth in the first quarter after three consecutive declines in gross merchandise volume, as bets on more premium brands and its business servicing other retailers paid off. While fast-fashion retailer Shein is a threat to Zalando's revenues and customer numbers, Chief Financial Officer Sandra Dembeck said the company does not want to compete on price, instead trying to differentiate itself with a range of higher-priced brands such as On Running, which it recently added. "We do not want to compete in the ultra fast fashion, ultra low price point segment," Dembeck said in a press conference.
- Reuters
UPDATE 1-Zalando challenges supervisory fee for EU online content rules, third such lawsuit
German online fashion retailer Zalando has challenged a supervisory fee aimed at covering EU regulators' costs of monitoring compliance with new European Union tech rules, the third company to take EU tech enforcers to court on the matter. Zalando said it disagreed with the European Commission's fee calculation methodology and wants more transparency on this. It said the regulator had determined its fee based on 47.5 million monthly active users while it designated Zalando as a very large online platform based on 83 million monthly visitors.
- Reuters
Zalando bets on Gen Z and logistic services as it sees return to growth
(Reuters) -Zalando will target younger buyers and encourage more brands to use its network to sell into complex European markets, the German online fashion retailer said, after forecasting a return to growth this year. Zalando, a multi-brand platform that sells clothes, shoes, and accessories, has faced weakening demand after a growth boom during the pandemic, as consumers grappling with inflation and high interest rates cut spending and turn to cheaper options offered by fast fashion rivals like China-based Shein. Zalando said it would focus on quality brands to pursue a bigger share of its customers' wallet, as it believes younger consumers will pay a premium for more durable items.
