BERLIN – German online fashion giant Zalando says it is targeting at least €30bn in ecommerce sales by 2025. The company made the statement in its annual report after a strong financial year for 2020 when it achieved €10.7bn in sales, despite the global pandemic, with Gross Merchandise Volume (GMV) growing at 30 per cent.
The company also says it has had an “extraordinarily strong start” to 2021 with expected GMV growth of around 50 per cent in the first quarter.
Zalando expects to grow GMV by 27-32 per cent to €13.6-14.1bn in the financial year 2021. The business said it will also continue to invest into its logistics infrastructure and technology platform and plans capital expenditure of €350-400m in 2021.
Zalando co-CEO Robert Gentz said: “2020 has been a year like no other. We have kept our eyes on our long-term vision to be the starting point for fashion. For the coming years, our focus remains on growth and investments for the long-term.”
Zalando said that in 2020, the business grew its active customer base by 25 per cent to 38.7 million. Added a company statement: “Building on this strong development, Zalando continues to invest into innovative ways to engage with customers to build deeper relationships in existing markets. In addition, Zalando will expand its footprint in Europe to eight further European markets: Croatia, Estonia, Latvia, Lithuania, Slovakia and Slovenia in 2021; Hungary and Romania in 2022.”
Zalando said that in the fourth quarter of 2020, its Partner Program accounted for 24 per cent of its GMV. More than 2,400 stores were connected to the Zalando platform by the end of 2020 through the Connected Retail program.
“The growth of Connected Retail underlines the value that the combination of offline and online can unlock for retailers,” added Zalando co-CEO David Schneider. “The industry has faced a lot of challenges in the past year, and we have seen partners engaging with Zalando more deeply than ever. We remain committed to be part of the solution and support our partners that are looking for ways to shift their business online.”