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Zalando revenues surge as AI functions expand

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The German retailer has rolled out AI across its data and infrastructure platforms

On this episode of Talking Shop I’m joined by Alain Bejjani—former Group CEO of Middle East retail giant Majid Al Futtaim, and author of the definitive new book, NEXT: Leading Through the New Realities. Drawing on his childhood in war-torn Beirut, and his experience steering a $9.5bn dollar retail and lifestyle empire through a global pandemic, Alain brings an unmatched perspective on leadership under pressure. Today, we break down his crisis survival playbook for retailers operating in distress. We discuss why resilience must always outpace efficiency, the four assets a brand must protect at all costs, and how to turn macro-turmoil into a long-term direction that scales.

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Zalando has announced its rose by 16.8% to €12.3bn (£10.6bn) for the 52 weeks ending 31 December 2025, as the German online retailer pushed an AI-focused strategy.

Adjusted EBIT rose by 15.6% to €591m (£510m), while group GMV climbed by 14.7% to €17.6bn (£15.2).

The company attributed its growth to the successful roll out of AI across its data and infrastructure platforms, identifying itself as “pioneering the next generation of agentic commerce in Europe”.

Following the results, the firm’s shop and marketplace software SCAYLE has also announced it will become the international online marketplace for levi.com in the US, Canada and Europe.

Rolling out AI across its entire business, the firm boosted its use of AI-generated product marketing content from almost none to 90% within a year, cutting campaign production time from six weeks to days and increasing content output by 70%.

In logistics, the business said it used advanced AI models to tackle supply chain optimisation problems and improve the accuracy of real-time customer delivery promises by 22%.

The firm’s team of approximately 3,000 tech specialists also expanded its software development output, making more than 20% more code updates.

Zalando also cited its acquisition of fellow German fashion site About You as a key driver of growth, linking its trend-focused app to customer satisfaction.

The company said this and its other apps, such as its brand-led flagship Zalando app and the deal-powered Lounge by Zalando app, brought active customer count to a high of 62 million.

It added that each app grasps users in its own way via inspirational content, gamification or daily deals, broadening its market reach and share of customers’ lifestyle spending.

Zalando’s B2B sales also widened by 14.6% to over €1bn (£863m), while adjusted EBIT more than doubled. The firm’s modular operating system, comprising commerce platforms ZEOS (Smart Logistics), SCAYLE (Shop and Marketplace Software), and Tradebyte (Marketplace Integration), now serves over 1,200 merchants and enables around 11 billion euros in GMV.

Zalando CFO Anna Dimitrova said: “Our 2025 results prove our ability to execute: we promised profitable growth and we delivered at the high end of our guidance,” “We are bringing that same unwavering discipline to 2026. Our priority remains to drive long-term value creation, and we are now in a position where we can fund our growth and return capital.

“Consequently, we have decided to buy back shares for up to €300m, commencing shortly after today’s publication. This underscores our confidence in Zalando’s future earnings power and our disciplined approach to capital allocation.”

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