The European fashion and lifestyle e-commerce giant Zalando is entering Portugal as part of its 2025 expansion strategy. Alongside Greece and Bulgaria, Portugal is one of the new markets that Zalando has targeted to increase its footprint across Europe. This move will raise Zalando’s presence to a total of 28 countries, reinforcing its position as one of the continent’s leading online retail platforms.

Official Announcements and Current Status

Zalando confirmed the planned expansion in its 2024 annual financial results, highlighting international growth as a key pillar of its strategy. The company has also updated its Partner Program, listing Portugal among the new countries expected to go live soon.
Although some media outlets have reported that Zalando is already selling in Portugal through cross-border fulfillment from Spain, official sources indicate that the full launch is still in progress. A recent LinkedIn post from the company suggests that Portuguese customers will soon gain access to the Zalando platform, but a complete operational rollout has not yet been publicly confirmed.

How Zalando Plans to Enter Portugal

Zalando typically adopts a phased approach when expanding into new markets. In Portugal, the entry strategy is expected to include:

Cross-Border Logistics

Initially, Zalando is likely to serve Portuguese customers through stock and distribution hubs located in Spain. This cross-border model allows the company to test demand before investing in dedicated local infrastructure.

Hybrid Retail and Marketplace Model

Zalando’s business model combines direct retail with its Partner Program, enabling local and international brands to sell through the platform. This creates opportunities for Portuguese fashion labels to gain visibility and access a broader European customer base.

Technology and Personalization

Zalando continues to invest in artificial intelligence and personalization features. Tools such as style recommendations, mobile optimization, and AI-driven shopping assistants are expected to be part of the Portuguese launch, enhancing the customer experience.

Potential Impact on the Portuguese E-Commerce Market

The arrival of Zalando in Portugal could reshape the competitive landscape of online retail. Key implications include:

• Increased Competition: Local and international retailers may need to adjust their pricing, delivery, and return policies to match Zalando’s standards.
  
• Opportunities for Portuguese Brands: Fashion brands in Portugal can leverage Zalando’s marketplace to reach millions of European shoppers.
  
• Consumer Expectations: Zalando’s focus on fast delivery, easy returns, and digital innovation is likely to raise customer expectations in the Portuguese e-commerce sector.
  

Challenges Ahead

Despite the potential benefits, Zalando faces challenges when entering the Portuguese market. Logistics, tax regulations, and adapting to local consumer behavior will be critical factors. Returns management, in particular, remains a costly and complex aspect of cross-border e-commerce that Zalando must address effectively.

The news that Zalando is entering Portugal marks an essential step in the company’s European expansion. While the full launch details are still emerging, the move demonstrates Zalando’s commitment to growth in Southern Europe. For Portuguese consumers, the arrival of Zalando promises greater choice, advanced digital shopping experiences, and access to one of Europe’s leading online fashion platforms.

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Despite a revenue drop, Zalando remains the largest online retailer in Switzerland. The local online department store Galaxus, now the new number 2, increased its revenue significantly last year. Temu is the only newcomer in the top 10.

This is according to figures from Carpathia, an e-commerce management consultancy. It releases a yearly ranking of the biggest players in e-commerce in Switzerland, with the top 50 of the biggest business-to-consumer stores and the top 15 of business-to-business stores.

Zalando leads the B2C list, with an estimated sales volume of 1.69 billion euros in Switzerland in 2023. This is 100 million euros less than the estimated revenue from the previous year. Switzerland is not unique in this decline: Zalando’s revenue at the corporate level has decreased for two consecutive years.

Zalando lost 100 million euros in Swiss revenue

The second and third positions belong to the same company: Digitec Galaxus. The namesake online stores have switched places: Galaxus, which is also growing rapidly outside Switzerland, now occupies the second place on the list.

Its revenue increased from just over 1.0 billion to nearly 1.4 billion euros, while the revenue of its electronics sister Digitec slightly declined. The revenue gap with Zalando is significant, but if Galaxus continues to grow at this pace, the number 1 position will be within reach very soon.

Temu and Amazon in Switzerland

Newcomer Temu, which has increased in countries including France and Germany, occupies the ninth place on the list of top online sellers in Switzerland. 

The other positions in the top 10 remain unchanged. Unlike in many large Western European countries, Amazon falls outside the top 3 and holds a prolonged fourth place.

Mercanto, Alltron, and Elektro-Material (EM) occupy the top three positions in Carpathia’s list of Switzerland's largest online B2B sellers.

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Zalando added a new body measurement feature to assist customers in the DACH - Germany, Austria, and Switzerland - region in finding the right size. They receive size advice based on their measurement by taking two pictures of themselves. With this tool, size-related returns should be reduced.

The app works by taking just two pictures in tight clothing and sending them to the Zalando app; then, it should be able to predict the customer’s body measurements. The platform claims to be the first company of this scale that has introduced such a feature yet.

With this body measurement feature, the company claims it also wants to support brand partners: “It can provide further insights into their customers’ size and fit requirements”,  Says Stacia Carr, Vice President of Size & Fit at Zalando.

When customers’ body measurements are predicted, the photos are deleted. According to Zalando, customers have complete control of their data-sharing preferences.

Lululemon joins Zalando 

The activewear brand Lululemon arrived at Zalando when the Canadian company wanted to introduce itself further in Europe.

European customers of the fashion and lifestyle platform will be able to shop Lululemon's activewear and accessories for yoga, running, training, and most sports activities in Zalando's Fashion Store.

"At Lululemon, we are focused on ensuring that our customers can connect with our brand and our ranges whenever and however they want," said Sarah Clark, senior vice president of Lululemon in the EMEA region.

Precisely for brands and clothing like the one Lululemon offers, Zalando has launched the body measurement feature to reduce the usually high return rates in this kind of product.

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Zalando has announced the layoff of hundreds of workers through a "program that will eliminate several hundred general functions in many of our teams," according to the letter released today by its co-CEOs and founders, Robert Gentz and David Schneider.

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While further details and the percentage of staff to be laid off are not yet known (negotiations with employee representatives began yesterday), Zalando has assured that certain key departments will not be affected: front-line operations functions in logistics centers, customer service, and outlet stores, as well as operational functions in our Zalando Studios.

The company, headquartered in Berlin since its founding in 2008, currently employs more than 17,000 people. Zalando has over 50 million active customers in 25 markets, including Spain.

The Covid boon is over… 

"Backed by a general consumer shift to online shopping and strong tailwinds from the pandemic in 2020 and 2021, Zalando has generated exceptional growth in recent years," Gentz and Schneider's letter notes. However, since 2022, Zalando acknowledges entering a phase of stagnation, further spurred by the financial instability unleashed by the war in Ukraine.

"This change has highlighted the increased complexity of our company and our speed of reaction. Instead of a large company with a large company structure and mentality, we must be a large company with a small company structure and mentality. An entrepreneurial company that embraces simplicity, pragmatism, and frugality. These principles will drive innovation and equip us to invest in our strategic priorities and shape the future of European e-commerce," they say in the statement.

In the latest results reported by the company, during Q3 2022, Zalando's GMV grew by 7.1% to €3.28 billion, and sales rose by 2.9% to €2.35 billion. Adjusted earnings before interest and taxes (adjusted EBIT) rose to €13.5 million from €9.8 million in the same quarter of the previous year.

For the full year, Zalando expects GMV to grow by 3% to 7% to €14.8 billion to €15.3 billion, while revenue would grow by 0% to 3%, or €10.4 billion to €10.7 billion, with adjusted EBIT of €180 million to €260 million. The company now expects to reach the lower end of these ranges.

Are Zalando layoffs an oddity or an industry-wide issue? 

One of the things that concern the most about Zalando's recent decision is the fact that to be honest; the e-commerce fashion sector remains in good health. 

In fact, according to Shopify, sales of apparel, footwear, and accessories continue to rise, hitting $204.9 billion in the US alone. 

That's tipped to grow by 13% this year, with consumers set to spend $204.9 billion on fashion items online.

The same situation is happening in Europe, where revenue in the e-commerce market is projected to reach US$730.30bn in 2023 and is expected to show an annual growth rate (CAGR 2023-2027) of 9.97%, resulting in a projected market volume of US$1,068.00bn by 2027.

Most of which is from the Fashion sector of e-commerce, the largest one in sales, accumulating well over 230 billion dollars in projected sales for 2023. 

That’s why Zalando's situation seems, at least odd, and many experts believe, is not indicative of an underlying problem in the e-commerce fashion industry.

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Zalando now sells toys. The company has expanded its product range with a selection of toys from well-known brands such as Lego, Playmobil, Hot Wheels, Barbie, Baby Born, Ravensburger, and Haba. 

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As reported by Locationinsider, the fashion platform has expanded its range in this product segment for the first time since 2018.

Now, toys for children of different ages can be found on Zalando, including stuffed animals, dolls, rockers, walkers, and toy cars for the youngest; puzzles, collectibles and game figures, musical instruments or costumes for older children.

The platform thus continues its commitment to innovate and expand its range of products. Last October, Nike chose the marketplace to integrate, within its structure, its own online business. In the announcement, the company said it planned to expand this partnership to Zalando customers in Germany, the Netherlands, France, Belgium, Denmark, Sweden, Finland, Italy, and Poland.

A good year for Zalando? 

The German marketplace closed the third quarter of last year with its sales up but fattening its losses. Specifically, the company's turnover rose 2.9% in the third quarter of the financial year to EUR 2,349.1 million. Gross merchandise volume increased by 7.1% to 3,282.8 million euros.

However, despite the losses, the company explained in the presentation of the results that, for the first time in its history, the number of active marketplace customers exceeded the 50 million mark, to 50.2 million customers, thanks to its loyalty program. In terms of profitability, the German company confirmed the growth forecasts it set in June last year, although it expects them to remain in the lower range.

But Zalando is not the only one suffering from a kind of ‘hangover’ during 2022. Asos, the British fashion e-commerce brand, presented full results for the 2022 financial year, and the data leaves much to be desired. 

Asos and Boohoo are also struggling 

The company has raised its sales by just 1% in the period and has entered into losses, with red numbers of 30.8 million euros. The company has been one of the most penalized by the end of the ‘e-commerce/covid boom party’ and began to take measures to cure the hangover before anyone else. In its first half-year results, the British group already anticipated the impact of inflation on its business.

High logistics costs, price rises, the exit from Russia, and the downturn in consumer demand caused the company to start looking for solutions, all without a first sword after the departure of Nick Beigthon, the group's CEO for the past six years, in October 2021.

Boohoo is also struggling and has implemented emergency measures during the past year to safeguard its business. The company closed in 2021 following the same trend as the rest of the online operators: moderating sales growth, which rose just 14% in the period, but the situation was more severe for the company's profit, which plunged 94%.

In the first quarter, the situation worsened, and sales fell by 8%, while in the first half of the year, described by the company as "difficult", the company lost optimism after reducing its turnover by 10%. The company then reduced its year-end forecasts, estimating the same drop for the rest of the year.

To alleviate the situation, the company has implemented a series of measures to face the recovery and improve its profitability. The plan involves improving the areas of procurement, inventory management, and overhead.

But the big decision taken by the group in 2022 was to get rid of a big stone in its shoe that prevented it from dancing. After studying and testing this measure for months, Boohoo decided in July to go ahead with it. The group then changed the fine print on its website, which now states that it will charge £1.99 for each return.

All in all, it seems 2023 will be a year of challenges for global e-commerce. 

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Its active customer base grew by 8% this year. Additionally, its loyalty program called Plus almost tripled its membership.

Zalando is one of the biggest online stores in Germany and has also grown into an e-commerce giant worldwide. 

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This week, it released its financial results for Q3 2022. It now has a total of 50.2 million active customers, mostly thanks to its loyalty program. On average, each active user placed 5.2 orders during the year.

Even when Zalando news is positive, the brand is aware of the upcoming difficulties. 

“I am proud that we are reaching 50 million active customers and of our progress in deepening our relationships with them”, said Robert Gentz, co-CEO at Zalando. “We will continue to carefully navigate through these turbulent times, pushing forward with measures to improve profitability as well as strategic initiatives that inspire and engage with our customers.”

Zalando reached €3.28 billion in Gross Merchandise Volume for 2022

Additionally, the company’s GMV - Gross Merchandise Volumen - in Q3 this year grew 7.1% when compared on a year-on-year basis. 

It reached a total GMV of 3.28 billion euros. It generated a revenue of 2.35 billion euros, which was a growth of 2.9 percent when compared to last year.

Zalando’s EBIT - Earnings Before Interest and Taxes - has also improved, to 13.5 million euros, a growth of 37.8% year-on-year. 

“The introduction of a minimum order value has encouraged customers to increase the size of their basket or pay the delivery fee. As a result, orders below the minimum order value are now profitable”, stated the company in its press release.

Zalando's net result is still in red: € -35.4 million

Despite this growth, the company is still operating in red numbers. Its net income is a loss of 35.4 million euros. In the same period last year, its net income reached a loss of 8.4 million euros.

The company indicates that this can be related to low consumer confidence and inflation. “Although it’s not crystal clear how consumer spending will play out in the final quarter, we are working hard to execute and deliver on our strategic priorities and financial outlook”, said CFO Sandra Dembeck.

🔥You can read the entire Zalando report directly from their website🔥

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Zalando, one of the largest e-commerce fashion platforms, was planning to launch in the U.S. next year with an estimated investment of over a hundred million euros. However, current financial results have delayed the plan.

Zalando called its American expansion ‘project Kangaroo’ and it had a headcount of over 100 employees already working on the project. 

The company wanted to launch in the wealthiest regions, starting from the northeastern states, such as Connecticut, Maine, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont. 

A slow year for Zalando

The main reason to put the project on hold was the poor financial situation that Zalando reported at the end of the Q1 of this year: with a total revenue of 10.4 billion euros, Zalando decreased its global revenue by 1.5 percent. 

It might not seem as much of a decrease, but the fact that Zalando reduced its global revenue, instead of increasing it, poses a heavy blow for the company and a clear warning that the e-commerce boom is finally over. 

Additionally, its market capitalization decreased from 26.35 billion euros by July 2021 to 9.4 billion in May this year.

The end of the e-commerce boom?

As reported to media and investors, between January and June 2022 Amazon posted a loss of 20 cents per share versus the 13 cents per share analysts had expected, a drop after posting net income of 15,885 million in the same period of 2021. And despite this, expectations and the investment market have received the figures as positive news. And why is that?

The accounts include 3.9 billion loss from Amazon's investment in Rivian Automotive, an electric car manufacturer in which it has an 18% stake, which it has not been able to offset with the rest of its businesses, since, excluding this operation, the firm would have made a profit of 1.9 billion dollars. This is the main reason why the market has not taken the losses negatively.

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Zalando says that packaging is an important part of the company’s vision to become the leading platform for sustainable fashion in Europe. This decision is partly based on a recent study on customer behaviour. The study shows that 75% of European consumers find that sustainable packaging influences their purchasing decisions.

Pilot project on reusable packaging

Zalando is already converting their Beauty Bags from plastic to paper. The company recently also introduced polybags that are made from 60% recycled plastic to protect its textiles. Now, they are working on a pilot project to see how they can work with reusable packaging.

Return packaging to Zalando

Zalando's customers will receive their orders in a transport box or bag. These boxes and bags are to be used many times for shipping or returns.  Zalando puzzles about both the use of materials and the organisation behind the initiative. The fashion platform will run the test in several European countries and will enable customers to return the packaging to Zalando to be used again. Zalando wants to start a pilot project for the reusable packaging this year.

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Introducing Zalando Plus

The popular fashion platform plans to further strengthen this positive development by deepening customer relationships with Zalando Plus, which is available for all customers in Germany. The company is currently running a trial for the project in Switzerland, with France and Italy to follow within the next twelve months. Co-CEO Rubin Ritter said: “Our clear customer focus has paid off in the first quarter, as we made further headway to build the starting point for fashion in Europe.”

Partner Program

Zalando continued to capture market share in the first quarter of 2019: revenue increased by 15.2% to 1.4 billion euros. Europe’s leading online platform for fashion and lifestyle achieved a positive adjusted profit of 6.4 million euro. As the platform business continues to gain traction, the company continues to successfully scale its services for partners. Brands intensifying their usage and new partners joining the program resulted in strong growth of Zalando’s Partner Program.

In the first quarter, about 30% of all Partner Program orders were fulfilled through Zalando Fulfillment Solutions (ZFS). The online fashion giant will further strengthen and expand Zalando Payments Solutions (ZPS) with their newly acquired e-money licence. This will improve payment transactions on the Zalando platform. David Schröder, CFO, is said to be happy with the financial results in the first quarter.

“The results show a strong focus on growth and are in line with annual guidance. The fashion platform will continue to invest in areas of the business that have high added value for our customers,” he concluded.

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Following a recent decision by

One of the reasons that Zalando grew big in the past couple of years was their flexible return policy (free up to 100 days). Another was no charge of shipping costs. However, German retailers seem to have moved back from those standards. Spaniards, Irish and British customers will now have to spend more than €25 in order to avoid spending approximately €3/€3.50 on delivery costs. In Italy, the company has already started to charge for delivery.

Zalando changes the rules, again

According to the fashion platform, there are no plans to charge shipping costs in other countries yet. Els Breugelmans, an expert in e-commerce, believes that there is a turning point in terms of free shipping. She also finds it typical that Zalando, the company that has changed the rules of the game in the sector, is changing the rules again.

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