German online fashion platform Zalando SE is set to soon announce its first deal with a US client, marking a breakthrough into the US market with the company’s business-to-business offerings.
“We now have the first teams on the ground to also develop the market for us, to talk to brands and retailers about their needs,” David Schröder, co-chief executive of Zalando, said in an interview this week. “We are finally approaching – and this makes us very happy – the conclusion of the first agreements here in the United States, which we hope to announce in the coming months. »
Zalando’s business-to-business operations have historically focused exclusively on Europe. But the company hailed the United States as “one of the biggest opportunities” for its Scayle software, which it gained through the acquisition of rival About You Holding SE in 2025. The software helps companies manage inventory and branding across all sales channels. Schröder described Zalando’s business-to-business operations as a “multi-billion euro” opportunity. While much of this is logistics, he expects software to account for “a few hundred million” in revenue.
Zalando shares jumped as much as 4% on Friday before paring gains.
The financial targets the company announced last year failed to impress investors. The Berlin-based company has lost more than $20 billion in market value since its peak as a pandemic darling in 2021. Its shares fell post-pandemic as consumers returned to physical stores to shop. Despite some momentum in Zalando’s earnings, investors remain cautious about its ability to grow margins.
“There still seem to be doubts about whether we will succeed or not, especially regarding margins,” Schröder said of investor reaction to the company’s financial forecasts. “This year we will prove once again that the margin is increasing and that we continue to grow. When Zalando reports its annual results in March, Schröder said executives will also “communicate a simpler story to clarify what our priorities are” while reiterating financial targets.
Schröder said he expects an increase in traffic to Zalando’s shopping platform from chatbots and artificial intelligence agents in the coming years. Today, more than 80% of Zalando’s traffic is organic and does not come from paid advertising, Schröder said, with the rest coming largely from paid channels such as Google and Meta Platforms Inc. But “a low single-digit percentage” is now driven through AI, he said.
While some have warned that AI tools threaten to undermine the business model of e-commerce companies, Schröder said he is optimistic that the technology will help Zalando reach new customers. The company recently began working with Google’s open standard for agent commerce, designed to help retailers connect with consumers using AI to shop.
“We obviously want to be where the customers are,” Schröder said.
Although agent commerce may create some disruption for the industry, Felix Dennl, an analyst at Bankhaus Metzler, recently said in a note that he sees AI as an opportunity for Zalando to create content and optimize returns.
By Alicia Tang and Sonja Wind
Learn more:
Zalando goes to EU’s highest court to fight online content rules
Europe’s largest online fashion retailer says a lower court erred in dismissing its challenge.