Zalando Q2 results see ‘partners’ flexing omnichannel muscles

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Zalando Q2 results are shining a spotlight on the successful trading of their ‘partners’ as the marketplace are proving to be fertile ground for physical retailers to harvest sales online.

The marketplace saw their gross merchandise volume (GMV) spiking by 23.7% on the year-on-year (YoY) basis to £1.76 billion; increasing their revenues by 20.1% to £1.41 billion. In the same period, Zalando achieved an adjusted of £89.68 million or a margin of 6.4%.

The number of active customers grew significantly by 3.7 million (15.2%) on the YoY basis to 28.3 million across Zalando’s 17 European markets. The same period saw site visits go up 34.3% to 986.4 million, 84% of which came through mobile devices, resulting in a record number of 36.1 million orders.

“Our platform transition continues to accelerate. The growth of our Partner Program leads to a more attractive and diverse assortment for our customers. We will continue to see GMV growing faster than revenues, fully in-line with our long-term strategy,” – David Schröder, chief financial officer, Zalando.

Zalando continues to extend their cooperation with brick-and-mortar retailers via their Partner Program in an attempt to support partners’ omnichannel strategies. More than 1,300 offline stores are plugged into the marketplace in a bid to test the waters of online retailing, unifying their proposition by bleding the best practices of online and offline.

Zalando launched the Partner Programme with an aim to allow customers to choose from an “even wider range of products and increased product availability.” The Partner Programme has been developed for select partners who would like to take part in the Zalando shopping experience and who offer products from the following categories including clothing, shoes, accessories and sports. For merchants, the catch is that the platform serves as an additional sales funnel where they can get higher visibility by taking advantage of Zalando’s presence in 17 European.

The marketplace are also taking up a few initiatives “to excel the customer experience.” Zalando are currently building a new warehouse in the Netherlands to serve customers across the Western European markets and ready the company’s logistics capacities for future growth. In Germany, Zalando has doubled the number of parcels delivered on the same or next day compared to the first quarter and in Switzerland, they are currently testing same-day evening delivery in the Zurich region.

Zalando will be reporting the results for the third quarter of 2019 on the 31st of October, 2019.

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