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German e-retailer Zalando grows web sales 36% in 2015

March 4, 2016 04:27 PM
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German shoe and apparel web merchant Zalando SE put new website features and functions to work in 2015 and the result was more growth in such key measures as sales, orders and order size. Mobile traffic and app downloads also increased, according the company’s year-end earnings report.

New site features targeted customer satisfaction, including easier and faster delivery and returns, and the retailer also expanded the product assortment across its dedicated websites serving 15 European countries, the company says.

Mobile accounted for 57.1% of total traffic for the year compared with 42.3% in 2014, Zalando says. App downloads more than doubled to 19 million in 2015 from about 7 million in 2014. Joint promotions with brand manufacturers led to a 22% increase in active customers to nearly 18 million.

Zalando says it developed an e-commerce platform not long after launching in 2008 and last year added Zalon, a curated shopping service, and Zalando Media Solutions, a digital advertising service. All are designed to serve shoppers, brands and other businesses.

To strengthen its technology capabilities, Zalando opened technology hubs in Dublin, Ireland, and Helsinki, Finland, and increased its technology team to approximately 1,000 employees by the end of 2015. The fulfillment footprint is expanding with a third fulfillment center planned in Lahr, Germany, and its first satellite warehouse outside Germany in Stradella, Italy.

For the fiscal year ended Dec. 31, Zalando, No. 8 in the Internet Retailer 2015 Europe 500, reported:

  • E-commerce sales of 2.792 billion euros ($3.069 billion), up 36.3% from 2.048 euros ($2.251 billion) in fiscal 2014.
  • Online sales in its primary market, comprising Germany, Austria and Switzerland, of 1.580 billion euros ($1.737 billion), up by 28.0% from 1.234 billion euros ($1.356 billion).
  • Web sales in the rest of Europe of 1.211 billion euros ($1.331 billion), an increase of 40.4% from 862.6 million euros ($948.1 million).
  • Other sales, comprising Zalando Lounge, an online shopping club featuring limited-time offers, and Zalando outlet stores in Berlin and Frankfurt, Germany, of 166.5 million euros ($183.0 million), up 41.8% from 117.4 million euros ($129.3 million).
  • Total sales of 2.958 billion euros ($3.251 billion), up 33.6% from 2.214 billion euros ($2.433 billion).
  • Net income of 121.5 million euros ($133.5 million), up 158.6% from 47.1 million euros ($51.8 million).
  • Number of orders increased 55.3 million, up 33.6% from 41.4 million.
  • Average order size was 67.8 euros ($75), up 1.8% from 66.6 euros ($73) in 2014.

For the fourth quarter, Zalando reported:

  • E-commerce sales of 811.2 million euros ($891.8 million), up 28.9% from 629.1 million euros ($691.7 million).
  • Web sales in its primary market, comprising Germany, Austria and Switzerland, of 450.7 million euros ($495.5 million), up by 24.0% from 363.5 million euros ($399.6 million).
  • Online sales in the rest of Europe of 360.5 million euros ($396.3 million), an increase of 35.8% from 265.5 billion euros ($291.9 million).
  • Other sales, comprising Zalando Lounge, an online shopping club featuring limited-time offers, and Zalando outlet stores in Berlin and Frankfurt, Germany, of 57.3 million euros ($63.0 million), up 57.0% from 36.5 million euros ($40.1 million).
  • Total sales of 868.5 million euros ($954.7 million), up 30.5% from 665.6 million euros ($731.7 million).
 

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