Online retailer Zalando has reported that its gross merchandise volume increased by 2.8 per cent to reach £2.8bn for Q1 and that it had increased the number of active customers by 4.8 per cent to exceed 51 million.
Its loyalty scheme, Lounge by Zalando which is based on an offering of limited time ‘flash sales’ and discounts generated a 33 per cent increase in revenue for Zalando’s off-price activity.
Zalando has been reassessing its brand portfolio to achieve profitable growth and has also been simplifying its structure to become more innovative and quicker to market. It is also understood to be working on improving the local relevance of its ranges for customers.
Co-CEO of Zalando, Robert Gentz said: “The first quarter demonstrated how flexible our business model is, enabling us to perform in a challenging market environment as we saw strong customer demand at our Offprice segment and a strong performance of the partner business.
“Curated product drops with brands such as Adidas and Salomon to teaming up with designer brands to create capsule collections led to increased engagement with our customers. These exclusive and limited-edition products keep our customers coming back more regularly.”