Zalando, a Potential Target for Major eCommerce Players

Zalando, a Potential Target for Major eCommerce Players

Howdy !

The company that successfully acquires Zalando can instantly turn into Europe’s largest online fashion retailer.

That’s what an analyst at German investment bank Baader Helvea said, citing Zalando as a potential takeover target at a low buyout price.

Zalando’s share price spiralled down after announcing a second profit warning in the previous quarter, but they remain a valuable investment for investors, according to Volker Bosse, co-head of Baader Helvea Equity Research.   

Since Amazon and Alibaba are not only well-versed in Europe’s eCommerce market but also keen on dominating it, they seem to be the perfect candidates for a takeover bid.

Should either of them express interest in acquiring Zalando, Bosse said:

“We see the potential that these investors could sell if the offered price is right.”

What makes Zalando an ideal target?

Even though they reported lower-than-expected revenues for the third-quarter, not to mention a £34 million loss, Zalando’s data of more than 25 million customers and 2.5 billion website visits per year makes them a promising acquisition target.

What’s more, the company’s transition from an online store to a marketplace and infrastructure provider has helped push them further up the ladder of the fashion industry.   

Zalando Co-CEO Rubin Ritter said during the company’s Q3 2018 earnings call that they will continue their upward trajectory in 2019 to make sure that they achieve 5% market share.

Who do you think would win in a takeover bid if ever one takes place—Amazon or Alibaba? We’d love to hear from you in the comments below.

As always, to your continued success,

Dave & Matt


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