Zalando to ‘accelerate’ growth with Ecosystem Strategy and loyalty scheme

After returning to profit in 2024, thanks to its Ecosystem Strategy, European e-commerce giant Zalando has revealed its plans to see 4-9% growth in 2025.

In 2025, the e-tailer expects gross merchandise volume (GMV) and revenue to grow between 4% and 9%. Adjusted EBIT are expected to increase to a level between 530 million.

In January, Zalando said it exceeded its profitability guidance for fiscal year 2024 thanks to a “better than expected” fourth quarter.

Gross merchandise volume (GMV) rose by 4.5 % to £12.8 billion (€15.3 billion) for the year ending 10 October 2024. Revenue grew by 3.9 % to £8.8 billion (€10.5 billion) and capital expenditure amounted to £176 million (€210 million).

Zalando said its growth was driven by "strong customer growth fuelled by marketing and better sell-through". Adjusted EBIT is expected to reach around £429 million (€510 million), above the company's current guidance, which was £370-404 million (€440-480 million).

Robert Gentz, Zalando co-CEO, said: "Our ecosystem strategy is progressing well and is our exciting new North Star. It has already contributed to a strong financial performance in 2024, and we now accelerate our execution efforts and invest to capture future growth.

"In our B2C growth vector, we are rolling out our updated loyalty programme, expanding our lifestyle offerings in areas such as sports, and inspiring customers through exciting content integrations. In B2B, we are almost doubling the markets we are operating in and offering more advanced software and logistics solutions to serve brands’ and retailers’ own webshops and apps."

In 2025, the company plans to drive revenues with its updated loyalty programme, Zalando Plus. The programme has already been successfully launched in Germany, Italy, Spain, France, the Netherlands, Switzerland and Austria, and will be rolled out to most markets in 2025.

Also to accelerate its efforts to build the leading fashion and lifestyle e-commerce ecosystem, in December, Zalando announced a plan to team up with About You. The e-tailer entered an agreement to acquire German fashion e-tailer About You to "better serve the needs of customers and partners".

Major About You shareholders (Otto Group, Otto Family, Heartland and current management), which represent 73% of the company’s share capital, entered into binding agreements to sell their shares by accepting the public offer or separately to Zalando.

Zalando will report the results for the first quarter of 2025 on 6 May.