Shopping mood in the basement: Zalando fears for existence: austerity package should help

Shopping mood in the basement: Zalando fears for existence: austerity package should help

© picture alliance / dpa
The logo of the online retailer Zalando at the company headquarters on Muhlenstrabe.

Consumers are currently not in a shopping mood: online retailer Zalando wants to mitigate the effects of the corona pandemic with a multi-million dollar savings program.

Zalando on the back burner: save now

The cost reductions should amount to 350 million euros, a spokeswoman confirmed on Thursday on request. The magazine “Business Insider” had previously reported on it.

Zalando has been significantly affected by a decline in consumer spending in the wake of the pandemic, announcing falling earnings for the first quarter last week and also withdrawing its forecast for the current year.

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Zalando has taken measures to “adjust business, spending and investments, and financial planning for the year to new circumstances,” the spokeswoman said.

“We anticipate savings in the areas of marketing, logistics, overheads and reduced capital expenditure.” The aim is to avoid layoffs.

With savings package: Zalando wants to weather the Corona crisis

As “Business Insider” further reported, the planned savings are to be financed, among other things, by a waiver of wages. The management board will forego 25 percent of its remuneration, the second management level to 15 percent. Planned salary increases would be postponed to January 2021.

However, Zalando was confident. The current situation will “accelerate the change from offline to online,” said the spokeswoman.

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The company is convinced that the investments of the past decade have created the necessary conditions to “weather the crisis” well. (dpa)

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