Zalando's Ambitious Expansion Plan: Consolidating Europe's Fashion E-commerce
By Karolin Rothbart
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Europe's leading online fashion retailer, Zalando, is on a mission to dominate the e-commerce landscape - and it's pulling out all the stops with its acquisition of Hamburg rival, About You. With a price tag of 1.1 billion euros, Zalando intends to eliminate industry-wide inefficiencies in business-to-business, logistics, payment processing, and commercial cooperation by consolidating these sectors [1][3].
The ultimate objective? Seize new growth opportunities in the highly competitive market. Here's a lowdown on Zalando's acquisition deal, growth strategy, and ongoing consolidation efforts.
The Acquisition of About You
Progress on the acquisition front is moving swiftly. Zalando has managed to secure 91.5% of About You's shares, and regulatory approvals are advancing smoothly, indicating a positive sign for the acquisition's closure this summer [1][3].
The acquisition's impact on Zalando's financials won't be reflected in its full-year forecasts for 2025. However, it's expected to bolster Zalando's growth strategy once finalized, potentially elevating its market position and offerings [2][4].
Full Steam Ahead: Zalando's Growth and Consolidation
Revenue and Gross Merchandise Volume (GMV) Forecasts
With challenging geopolitical and macroeconomic conditions, Zalando anticipates a revenue growth of 4% to 9% for 2025 alongside similar increases in GMV [4][5].
Adjusted EBIT Outlook
The company projects an adjusted EBIT of €530 million to €590 million for 2025, a significant increase from the previous year's €511.1 million [4][5].
Product Strategy
Zalando is focusing on broadening its premium and brand segments, including luxury items, sports equipment, and cosmetics, to set itself apart from low-cost retailers [5].
B2B Expansion
Zalando's B2B business, powered by ZEOS, is witnessing double-digit growth. The acquisition of About You will breathe new life into this segment, integrating About You's Scalye shopping software [5].
Operational Adjustments
Despite its growth trajectory, Zalando plans to streamline its operations. This includes restructuring its customer service, resulting in job cuts accompanied by new positions with different skill sets [5].
In sum, Zalando's acquisition of About You is a keystone component of its growth strategy, designed to extend its reach and strengthen its position in the European e-commerce sector.
The acquisition of About You, a significant move in Zalando's growth strategy, is anticipated to bolster its financial performance and Growth Merchandise Volume (GMV) once finalized, ultimately aiming to secure new opportunities in the competitive retail industry. In addition, Zalando's B2B expansion, spearheaded by ZEOS, aims to consolidate and enhance its operations in the finance sector, particularly in business-to-business, logistics, payment processing, and commercial cooperation.
