Zalando will refuse cooperation with a number of brands
German online retailer Zalando, which develops Europe's largest online platform for the sale of clothing, shoes and accessories, is going to stop selling a number of unpopular brands. Reducing the assortment is one of the measures to reduce costs and increase profits.
The German online retailer explains its decision to reduce the assortment by the fact that customers have recently become more selective in choosing clothes and shoes. The new motto of Zalando is "quality over quantity". The company makes a choice in favor of brands with the most thoughtful offer for customers. As part of the new strategy, several fashion brands were recognized as non-compliant at once. Auden Cavill and Jimmy Sanders, for example, received emails last week that their products were "no longer aligned with their assortment strategy." Products of these brands will be removed from the Zalando platform until June 30th. Before this date, companies are required to withdraw goods from the warehouses of the online retailer.
As we wrote earlier, in 2022, Zalando's adjusted earnings before interest and taxes (adjusted EBIT) decreased to EUR 184,6 million in 2022 from EUR 468,4 million in the previous year. Accordingly, last year's adjusted EBIT margin was 1,8% compared to 4,5% in 2021, and net income was just €16,8m, up from €234,5m a year earlier. The company is carrying out staff reductions and other measures to support businesses that are experiencing difficulties due to the difficult macroeconomic situation.
German online retailer Zalando, which develops Europe's largest online platform for the sale of clothing, shoes and accessories, is going to stop selling a number of unpopular brands. Reduction…
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