European online fashion retailer Zalando today announced a new customer loyalty programme that offers premium services like pickup of returns and same-day delivery as its sales slowed down slightly during the second quarter, according to preliminary figures.
The new membership programme, “Zalando Zet,” resembles the Amazon Prime loyalty scheme and will be available in the initial phase in four German cities enabling selected customers in Berlin, Leipzig, Frankfurt and Hannover to test the service for three months free of charge. After this trial period, they can become members for 19€ per year. Further cities in Germany will be added within the next months.
In addition to faster delivery and pickup of returns, Zalando Zet offers additional benefits such as dedicated customer service. For example, members get early access to sales and can contact stylists and experts via telephone or Facebook chat to answer fashion-related questions.
The new return-on-demand service enables customers to have their returns picked up within two hours at a time and location of their convenience.
In 2008, Zalando introduced free delivery and returns within up to 100 days. “Trying on goods at home for free as well as free shipping and convenient returns have been an integral part of Zalando’s offering ever since,” the company said.
“Service is key to our customers. Zalando Zet combines the best of both online and offline shopping: Customers receive orders faster and return items easier. Furthermore, Zalando Zet adds a personal experience, as customers can ask Zalando about the latest trends or if they are unsure how to combine the shirt they just ordered,” Lisa Schöner, Head of Zalando Zet, said.
“To make it as easy as possible to buy fashion online, Zalando constantly invests in customers by piloting new and innovative services and partnering with brands and retailers. Zalando Zet is the next step within our strategy of providing an even more frictionless shopping experience, tailored to fashion,” David Schröder, Senior Vice President Convenience at Zalando, said.
The company also announced the preliminary figures of its half-year revenues today which grew by 21-22% to €2,071-2,089 million. The adjusted EBIT for the first half-year 2017 is expected to come in at €100-106 million, a margin of around 4.8-5.1%. This would be below the H1 margin in 2016 (€101 million or 5.9%).
In the second quarter of 2017, the company achieved revenues of €1,091-1,109 million growing by 19-21%. This marks a slowdown from the 23% growth during the previous quarter. Nevertheless, Zalando Co-CEO Rubin Ritter said the result was in line with expectations.
“We are pleased with the performance in the first half of 2017 and continue to invest in order to meet our ambitious growth targets for the full year and beyond. In the fast-growing online segment, we continue to outperform the market and deliver on our 20-25% growth corridor. Our investments, for example in our fulfillment capabilities and the launch of our membership program Zalando Zet, are the cornerstones for future growth,” he said.
All figures reported are preliminary. The full financial results for the second quarter 2017 will be published on August 10, 2017.
