Zalando back to growth with the help of Offprice

Online fashion pure players have seen really difficult times over the last year. Zalando, ASOS and Boohoo have all seen their market capitalisations plummet. Zalando flourished during the pandemic, but this year has seen more difficult times for the company.

For the first two quarters of the year Zalando saw revenues decline slightly. In Q3/2022 the company reported a 3% growth in revenues. Is this a sign of growth returning?

Offprice: discounts delivering growth

Image source: Zalando

When looking at the different business segments of Zalando, a surprising growht story can be found in the Offprice segment. Offprice segment sells products from previous seasons and through a membership service, Zalando Lounge, it offers exclusive deals at low prices.

The biggest segment of the business, Rest of Europe, continues to grow faster than the other big segment, German speaking countries (DACH). Rest of Europe is already 50% of all Zalando revenue.

The Offprice segment has grown by a whopping 330% during the last five years. Currently it is already 14,4% of all Zalando revenue.