Retailer Zalando launches AI shopping agent as margins squeezed - CNA
FILE PHOTO: An AI-powered robot next to shoe boxes at Zalando headquarters during media day at Zalando in Berlin, Germany, September 16, 2026. REUTERS/Nadja Wohlleben/File Photo FILE PHOTO: A person carries a shopping bag branded by Zalando in central Berlin, Germany, November 13, 2025. REUTERS/Lisi Niesner/File Photo People sit inside Zalando headquarters during media day at Zalando in Berlin, Germany, September 16, 2026. REUTERS/ Nadja Wohlleben 03 Nov 2026 04:48PM (Updated: 03 Nov 2026 06:25PM) Bookmark Bookmark Share WhatsApp Telegram Facebook Twitter Email LinkedIn Set CNA as your preferred source on Google Add CNA as a trusted source to help Google better understand and surface our content in search results. Read a summary of this article on FAST. Get bite-sized news via a newcards interface. Give it a try. Click here to return to FAST Tap here to return to FAST FAST PARIS, Nov 3 : European online fashion retailer Zalando on Tuesday unveiled its first AI shopping agent that will allow customers to buy products from other retailers through the Zalando app, as inventory-clearing discounts pressured quarterly margins.
The industry is grappling with weak consumer sentiment and the rise of so-called agentic commerce, in which AI agents can handle the entire purchasing process on behalf of shoppers, from comparing prices across retailers to completing payment.
Zalando reported a 0.9 per centage-point drop in its third-quarter gross profit margin to 38.7 per cent, missing market expectations, according to analysts at Jefferies and JPMorgan.
"This decline was primarily driven by targeted investments in attractive offers for our customers in our retail business, especially in sneakers," Zalando finance chief Anna Dimitrova told analysts.
CNA Games Guess Word Crack the word, one row at a time Buzzword Create words using the given letters Mini Sudoku Tiny puzzle, mighty brain teaser Mini Crossword Small grid, big challenge Word Search Spot as many words as you can Show More Show Less She said the margin pressure was temporary and forecast a broadly flat gross margin in 2026.
Shares in the company recovered from earlier losses after Dimitrova's comments, and were up 0.5 per cent by around 0945 GMT.
"The stock could drift lower in the coming days given the lack of any incremental positives, in our view, and its current level, along with ongoing structural risk from agentic commerce development," JPMorgan said in a note to clients.
Zalando sells clothes, shoes and accessories from thousands of brands including Nike, Hugo Boss, and Coach.
As shoppers increasingly use AI to compare prices, check availability and get recommendations, retailers are racing to deploy AI tools and broaden the range of products offered on their platforms.
Zalando said it plans to launch AI-assisted checkout on its Zalando Extended platform in 2027. The service will allow customers to buy products from other online retailers without leaving the Zalando app, with AI agents helping to complete purchases. A pilot project with home furnishings retailer Westwing is under way.
Third-quarter revenue rose 5.1 per cent year-on-year to β¬3.17 billion ($3.55 billion), above the β¬3.15 billion expected by analysts polled by LSEG. Gross merchandise value, which measures the total value of goods sold, rose 7.5 per cent to β¬4.54 billion.Β Β Β Β Β
Our chief editor shares analysis and picks of the week's biggest news every Saturday.
