Major fashion retailer expects to grow volumes by 20% this year

The predicted growth will be driven by the fact more consumers are shifting to online shopping

Zalando

Major fashion retailer expects to grow volumes by 20% this year. Source: unsplash.com

According to Ecommerce News, Zalando expects to increase its Gross Merchandise Volume (GMV) by 10% to 20% in 2020. Its revenue is anticipated to grow in the same range as well.

At the same time, the overall fashion market is expected to drop by approximately 28% due to the coronavirus pandemic.

Since the European governments imposed restrictions due to the COVID-19 outbreak, fashion brands are transferring more of their business online to keep reaching their customers.

This has led to the Partner Program share of Zalando’s GMV increasing 4.4% year-over-year in Q1 2020. Besides, in the past 3 weeks alone, 50 new partners joined the program. Furthermore, in April, physical retailers in Germany and the Netherlands shipped almost 350,000 items to Zalando customers.

The data found that Zalando anticipates being ‘clearly profitable’ with an adjusted EBIT (earnings before interest and taxes) between €100 and €200 million. The company also wants to make investments worth somewhere between €230 and €280 million.

This will allow our partners to grow and gain market share in a challenging economic environment by building their business on Zalando. Many of them have significantly increased their activities on our platform in the past weeks, and we will continue to make it easier for them to reach customers across Europe
Rubin Ritter, Zalando co-CEO 

We’ve reported that Sainsbury’s has launched Volunteer Shopping Cards, enabling customers to shop on behalf of people who can’t shop for themselves, including the elderly, disabled, and vulnerable. According to the statement, customers who cannot shop for themselves should just visit the website and select how much they’d like to spend on their weekly shop, between £5 and £250.

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