Zalando expands and aims for Farfetch model for 2021

One of the consequences of the lockdown has been to disproportionately accelerate the growth of online retail. Among the best examples is Zalando, which has just closed the third quarter of the year with revenue growth of 21.6% and an increase in gross merchandise volume of 29.9% to 2.5 billion euros. Thanks to strong sales volumes, the retailer has also revalued its inventory to the amount of 35 million euros and expects even more growth for the future. This new confidence is reflected in Zalando's new initiative, Connected Retail, which aims to give a boost to the digitalization of physical retail following Farfetch's successful model.

The Connected Retail project will allow physical stores to connect their warehouse to the e-tailer and sell their products online directly to the more than 35 million customers active on Zalando. As Riccardo Viola, Director of Southern Europe and Gift Cards in Zalando, explained:

«Retail has been hit hard by the Coronavirus crisis. [...] As a European fashion platform with a strong logistics network and intelligent technical infrastructure, we can use our capabilities and resources to support the industry in one of the most pressing challenges».

From November, the programme will be active in Finland, Denmark and Norway. But in the first half of 2021 it will also be present in Italy, Belgium, France, Austria and Switzerland. In addition, Zalando has already announced that, in solidarity with retailers, it will waive all fees for connected retail partners until the end of the first quarter of 2021 and offer them advance payments. In addition, Zalando employees received a bonus of €500 each in recognition of the efforts made so far.