Zalando continues to be at the forefront of innovation in e-commerce with a test in Belgium of a new geolocation-assisted delivery service. By using a smartphone-enabled GPS tracking process, it will allow the shipment of its parcels directly to customers wherever they are, rather than only to their homes or workplaces.
For this new project, the leading European online retailer of fashion and sports apparel and footwear will work for three months with a Belgian start-up, Parcify, in the cities of Brussels, Ghent and Antwerp. It is part of new investments that Zalando is making in technology, logistics and the customer experience, and is based on the fact that more customers are using smartphones as a shopping tool throughout Europe.
The number of Zalando's active customers grew to more than 20 million in the 12 months ended last March 31 from 18.5 million in the year-earlier period, and almost 69 percent of them placed orders through mobile devices in the latest quarter against 62 percent a year ago.
Reportedly, Zalando is also considering 3D printing of sneakers by small and medium-sized brands for customers in Berlin, where it has its head office, as well as the opening of physical stores in other major cities such as London and Paris.
Zalando announced a 23.1 percent increase in first-quarter sales to €980.2 million, although the adjusted Ebit margin declined by 0.4 percentage points to 2.1 percent as compared to the year-ago period, due to increased investments intended to win further market share. The Ebit margin declined to 7.5 percent in the German-speaking area. It remained in the negative zone in the rest of Europe with a ratio of 0.4 percent, but this compared with a more negative margin of 5.1 percent a year earlier.
Sales grew by 17 percent to €475 million in the German-speaking markets and by 28 percent to €428.3 million in the rest of Europe. The net profit rose to €5.1 million from €4.6 million.
The management is predicting an improved Ebit margin of between 5 and 6 percent for this year on sales that should increase by 20 to 25 percent.
