Zalando’s E-commerce Ecosystem Strategy Fuels Accelerated Growth for 2025

“We have been able to increase our customer base to 51.8 million active users,” said Robert Gentz during the announcement. This total is 4.5% higher than the previous year.

2024 Financial Highlights

Some of the financial results of 2024 include GMV growth of 4.5%, to €15.3 billion, and revenue growth of 4.2%, to €10.6 billion. What was particularly significant was the adjusted EBIT of €511 million, which is much higher than the previous year’s €350 million. The increase pushed the adjusted EBIT margin from 3.5% to a healthier 4.8%.

In 2025, Zalando is expecting GMV and revenue growth of between 4% and 9%. These projections do not include the acquisition of ABOUT YOU.

Growth Strategy: Consumer and Business Focus

Zalando attributes its success to what Gentz calls their “ecosystem strategy”—parallel development of consumer-facing and business-to-business.

The company plans to expand its Zalando Plus loyalty program to most markets in 2025, building on its current presence in seven European countries:

• Germany
• Italy
• Spain
• France
• Netherlands
• Switzerland
• Austria

Meanwhile, the fashion selection continues to grow with recent additions including Versace menswear, Marine Serre, On, and Fjällräven. In February, Zalando became the only European retailer of Diane von Furstenberg.

Lifestyle Expansion

Apart from fashion, Zalando is expanding into lifestyle categories. The Beauty division is set to expand to Spain and Finland, making it available in 13 European markets. There will be 5 more territories added to the Lounge by Zalando in 2025, for a total of 22 markets.

Business Infrastructure and Strategic Growth

Zalando’s ZEOS operating system now serves 12 markets after expansion to Switzerland, Poland, and Spain. Merchants can access 10 sales channels, including 9 marketplaces covering 85% of Europe’s marketplace volume.

ZEOS was chosen by UK retailer NEXT for continental European fulfillment, which has led to the expansion into 10 additional markets where NEXT operates.

Zalando has secured over 90% of ABOUT YOU’s shares, with the acquisition expected to close by summer 2025. This move will enable the company to pursue a dual brand strategy and combine ZEOS with ABOUT YOU’s SCAYLE technology.

Sustainability Goals

Sustainable practices are improving with an 82% decrease in operational greenhouse gas emissions and a 48% decrease in private label product emission intensity since 2018. Some of the long-term goals are to become climate neutral in operations and private labels by 2040 and to become a fully carbon-neutral platform by 2050.

The results of the first quarter of 2025 will be announced on May 6.