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Zalando grows customer base following success of loyalty programme

Zalando has announced that its number of active customers grew by 6% to more than 51 million last year as trade was boosted by the success… View Article

FASHION RETAIL NEWS UK

Zalando grows customer base following success of loyalty programme

Zalando has announced that its number of active customers grew by 6% to more than 51 million last year as trade was boosted by the success of its loyalty programme.

The online retailer for fashion and lifestyle said its Plus loyalty scheme more than doubled its membership to over two million compared with a year earlier.

Robert Gentz, co-chief executive at Zalando, said: “The fact that we were able to continue to grow our customer base in the current economic environment shows that our core strategy is working. We want our customers to love Zalando and that’s why we are deepening our relationships with them. Understanding their needs and likes is crucial. Then they’ll keep coming back to us and stay longer with us.”

Zalando’s key financial figures for the full year 2022 all came within the ranges of the company’s updated guidance, despite what it described as a challenging economic backdrop. GMV grew by 3% to €14.8 billion while revenue was flat at €10.3 billion. Meanwhile adjusted EBIT came in at €184.6 million.

To ensure profitable growth in 2023 and beyond, Zalando said it will continue to work on improving its margin, simplifying operations and taking advantage of growth opportunities.

The company is also working to boost loyalty by encouraging customers to shop across its different fashion and lifestyle categories, as those who do, spend an average of three times more than those who only shop in one.

David Schneider, co-chief executive at Zalando, said: “There’s a lot of growth potential within our existing customer base. On top of that, we see further opportunity in increasing penetration across our markets, where huge potential lies ahead of us.”

Looking ahead, Zalando said GMV is expected to grow by between 1% and 7% this year, although revenue is expected to trail this within a range of -1% to 4% compared with the prior year. It expects adjusted EBIT to come in at between €280 million and €350 million in 2023.

Gentz added: “Our long-term ambition remains unchanged. We remain confident that we will return to double-digit GMV growth in the mid-term, by further executing on our vision and strategy, and eventually serve 10% of the €450 billion European fashion market.”

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