Zalando revenue €10.4 billion in 2021

Ecommerce fashion giant Zalando has surpassed the 10 billion euro revenue mark. It reports a total revenue of 10.4 billion euros in 2021. This was a 29.7 percent growth when compared to the year before. The company wants to reach more than 30 billion euros in GMV by 2025.

Today, the fashion giant published its financial year results for 2021. The German fashion platform reports a GMV growth of 34.1 percent to 14.3 billion euros. It achieved an adjusted EBIT of 468.4 million euros, which corresponds to a margin of 4.5 percent.

Active in 23 markets

Over the course of last year, the platform launched in six new markets: Croatia, Estonia, Latvia, Lithuania, Slovakia and Slovenia. As a result of that expansion, the platform is now active in 23 markets. According to the year results, Zalando has more than 48 million active customers, of which 10 million were new customers gained in 2021. On average, the platform received 5.2 orders per active customer.

‘We are in a strong position to achieve a GMV of more than €30 billion by 2025.’

“We are very pleased with our strong results, which demonstrate that we have the right strategy in place to succeed irrespective of the market environment. Our new customer growth and strategic progress in 2021 underline the immense opportunity ahead of us. Leveraging our platform business model, we are in a strong position to achieve our GMV goal of more than 30 billion euros by 2025″, says Robert Gentz, Co-CEO at Zalando.

Revenue around €12 billion in 2022

In the press release, the company mentions its financial ambitions for this year. It expects to grow its GMV with 16 to 23 percent, to 16.6 to 17.6 billion euros. It wants to grow its revenue with 12 to 19 percent, to 11.6 to 12.3 billion euros.

5.800 brand partners and 7.000 stores

The platform mentions that its strong growth is driven by consumer demand and increasing partner adoption of platform services. It now has more than 5.800 brand partners and almost 7.000 stores listed on the platform. Zalando’s Partner Program and Connected Retail account for 30 percent of the company’s Fashion Store GMV. This is a 6 percent growth when compared to 2020.

Zalando’s target is a 50 percent share of the Fashion Store GMV attributed to the Partner Program and Connected Retail. In order to do so, the company wants to further support partners. It’s investing between 400 to 500 million euros, adding four fulfillment centers to the existing network by 2023.

‘Zalando will add 4 fulfillment centers to its existing network by 2023.’

David Schröder, Chief Operating Officer at Zalando, says: “Zalando creates benefits for both our partners and customers. Our partners gain access to over 48 million active customers and our customers can easily find their favorite local and international brands. To enable strong sustainable growth in the future we will continue to invest in scaling and innovating our unique capabilities and infrastructure.”

Sustainability efforts

In the past year, Zalando has also invested in its sustainability campaign. It increased its sustainability assortment to over 140.000 products. It seems that customers have noticed the growth in that assortment, as the sale of these articles accounted for 21.6 percent of the company’s GMV. In 2020, that share was 16 percent.