Online retail : Pandemic profits for Zalando
The Berlin-based e-commerce company is thriving in the pandemic - thanks to a boom in third-party sales on its platform.
Berlin - Fashion retailer Zalando saw net profit nearly triple in the second quarter to €122.6m from €45.5m in the same period a year earlier as consumers turned to online shops during the corona lockdown. Sales in the period rose 27.4 per cent to €2 billion.
“We emerged from the first wave of this pandemic stronger than we went into it because of our strategic clarity, our strong partnerships and an extraordinary team effort. Many of our partners have intensified their business on our platform in the last few months,” CFO David Schröder said in a statement.
Zalando is taking a page from Amazon by allowing third-party retailers to sell through their site, hoping to grab an even bigger piece of the pie from smaller retailers. About 180 new partners joined the programme during the second quarter of 2020, the company said.
The Berlin online retailer is benefitting from a boom in internet shopping thanks to corona. Online sales in the second quarter rose 16.5 per cent to €20.2bln, according to the German association of e-commerce and mail order as orders for everyday items such as food, medicine and grooming products exploded by 51.2 per cent.