What Zalando Outlet does

Zalando Outlet is the physical retail arm of Zalando SE, Europe's leading online fashion and lifestyle platform. Founded in 2012 with the first outlet in Berlin, the company operates a network of 14–16 outlet stores located in German city centers (with Mannheim and Karlsruhe scheduled to close in August 2026). Each store typically spans 1,200–1,600 sqm and offers up to 15,000–20,000 articles from over 500 brands across fashion, footwear, accessories, kids, plus-size, premium/designer, beauty, home, lingerie, and sportswear categories, priced at discounts of up to 70% off the manufacturer's recommended retail price.

The product sold in stores is sourced from returns, unsold inventory, and clearance stock from the parent's Zalando online shop and the Lounge by Zalando shopping club. The company is registered under ZALANDO OUTLETS GmbH and Zalando Stores Experiences & Clearance Solutions GmbH & Co. KG, with operations led by four managing directors (Joanna Rogers, Holger Böhling, Martin Rost, Dorothee Schönfeld). There is no proprietary technology platform; the outlet functions as a physical retail extension of Zalando's e-commerce ecosystem.

Revenue is generated exclusively through direct-to-consumer physical retail sales of discounted branded fashion, with a free Zalando Outlet Card loyalty program (zPoints: 1€ spent = 1 point) supporting customer retention. The customer base is broad and horizontal, covering fashion-conscious value shoppers, plus-size consumers, families, and designer-label seekers in Germany. The business model is essentially a structured inventory-clearing channel for the parent, monetizing overstock through physical retail rather than further online discounting.

Name

Zalando Outlet

Legal name

ZALANDO OUTLETS GmbH

Website

https://zalando-outlet.de

Company type

Private

Founded year

2012

Operating status

Operating

Headcount range

11–50 employees

Short description

Zalando Outlet operates a network of physical retail stores across German city centers, selling discounted branded fashion, footwear, and lifestyle products (up to 70% off MSRP) sourced from unsold inventory of parent Zalando SE's e-commerce operations. It serves German fashion-conscious value shoppers, families, plus-size consumers, and designer-label seekers through a direct-to-consumer retail model.

Ownership category

akta.pro rank

Product category

Discount Fashion Retail

NAICS

Clothing and Clothing Accessories Retailers (458110), Shoe Retailers (45821), Clothing and Clothing Accessories Retailers (45811)

SIC

Retail-Apparel & Accessory Stores (5600), Retail-Family Clothing Stores (5651), Retail-Department Stores (5311)

akta.pro primary industry

Off-Price Department Store Chains (National) (CRAGAEAG)

akta.pro secondary industries

Footwear Outlet & Off-Price Retail (CRAAADAI), Off-Price Traditional Department Stores (CRAGAAAE)

Keywords

• Discount fashion retail
• Outlet clothing stores
• Branded apparel clearance
• Footwear and accessories
• Physical fashion outlets

Headquarters

HQ city

Frankfurt

HQ country

Germany

HQ region

Europe

Offices17 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Supply Chain, Marketing or Sales

Revenue model

1. Retail Sales of Discounted Fashion: Revenue generated from direct retail sales of returned, unsold, and clearance fashion items from Zalando's online operations. Products are sold at discounts up to 70% off manufacturer's suggested retail price. Items originate from Zalando's main online shop and Lounge by Zalando shopping club inventory.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels5 records

Core offering

Zalando Outlet operates a network of physical retail outlet stores across Germany that sell discounted fashion, footwear, accessories, and lifestyle products at up to 70% off the manufacturer's recommended retail price. Inventory is sourced from surplus, returned, and clearance stock of the Zalando online shop and Lounge by Zalando shopping club, offering over 500 brands under one roof. The concept positions itself as 'the Zalando Sale you can touch,' allowing customers to try on items and take them home immediately.

Product overview

Zalando Outlet operates a network of physical retail outlet stores across Germany, functioning as 'the Zalando Sale you can touch.' The offering is a unified retail experience centered on Zalando Outlet Stores, supplemented by the Zalando Outlet Card loyalty program with zPoints rewards. Stores sell surplus inventory from the Zalando online shop and Lounge by Zalando—including fashion, shoes, accessories, kidswear, premium designer items, beauty, home, and sports products—priced up to 70% below manufacturer suggested retail prices. The portfolio includes 14-16 store locations nationwide (with Mannheim and Karlsruhe closing in July 2026), with flagship stores in major cities like Berlin Tauentzien, Hamburg, Frankfurt Zeil, and Köln.

Differentiator

Problem solved

Functional benefit

Brands

• Zalando Outlet Card: Loyalty program allowing customers to collect zPoints on purchases and receive exclusive discounts and invitations to events.
• zPoints

Products and services

• Zalando Outlet Stores Network of physical retail outlet stores across major German cities (16 stores) offering discounted fashion, shoes, accessories, and lifestyle products from 500+ brands at up to 70% off manufacturer suggested retail prices. Customers can try on items in person and take purchases home immediately.
• Zalando Outlet Card Free loyalty membership program providing customers with exclusive access to discount actions, special deals, and shopping events, along with zPoints accumulation redeemable for annual vouchers. New members receive a €5 welcome voucher.
• Fashion & Apparel Textiles including dresses, blouses, shirts, skirts, jackets, coats, pants, T-shirts, and sweaters from previous seasons or with minor imperfections, available at up to 70% off MSRP across all outlet store locations.
• Footwear Over 8,000 pairs of shoes available per store, including high heels, boots, sneakers, sandals, and ballerinas at outlet pricing.
• Premium and Designer Collection Selected designer brands and premium fashion items at up to 70% reduced prices, featured in dedicated designer sections at flagship stores including Düsseldorf and Berlin Tauentzien.
• Kids Collection Fashion for babies and children up to size 176, addressing the recurring need for affordable children's apparel.
• Plus Size Fashion Extended-size fashion for women up to size 52 and men up to XXXL, addressing limited availability of fashionable options in standard retail for larger-size consumers.
• Beauty Products Beauty brands and skincare cosmetics for women including makeup and fragrances, available in dedicated beauty sections at flagship locations.
• Home & Living Home accessories, bedding, and decorative items for the home, available at select store locations including Berlin Tauentzien and Dresden.
• Accessories Bags for every occasion, backpacks, belts, scarves, glasses, and jewelry to complement any outfit, sold across all outlet store locations.
• Sportswear Sports brands and athletic clothing for workouts and active lifestyles, part of the broad assortment across outlet stores.
• Lingerie Women's underwear and intimate apparel from sporty to seductive styles, available at most outlet locations.

Quantifiable outcome

• Up to 70% savings compared to manufacturer's recommended retail price
• +3 more outcomes

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators5 records

Recent moves11 records

Expansion highlights5 records

Direct peers

• TK Maxx: Europe's largest off-price fashion and home retailer, operating in Germany and across Europe. Directly comparable to Zalando Outlet as a multi-brand, deeply discounted physical retail concept selling branded apparel, footwear, and home goods.
• Saks OFF 5TH: US-based off-price retailer selling returns and unsold inventory from Saks Fifth Avenue and third-party brands at deep discounts. Highly comparable business model of clearing premium fashion at outlet prices through physical retail.
• Nordstrom Rack: Off-price retail division of Nordstrom selling discounted branded and private-label fashion. Comparable in marrying an established parent brand with an off-price physical retail strategy and a deep discount value proposition.
• H&M Outlet: H&M's outlet stores selling previous-season fashion at reduced prices. Comparable multi-store physical outlet format serving value-conscious apparel shoppers, though single-brand rather than multi-brand.
• Mango Outlet: Outlet stores operated by Spanish fast-fashion brand Mango, selling previous-season Mango inventory at significant discounts. Comparable as a single-brand off-price physical retail format with similar supply-side logic.
• Zalando Lounge: Zalando's online flash-sale shopping club, sharing the same parent company's inventory of returns and unsold stock. Comparable in product sourcing and discount depth, but operates digitally rather than physically.

Regional players

• Engelhorn: Established German fashion retailer with outlet operations and a strong presence in southwest Germany. Comparable multi-brand discount department store concept in the same German regional market as Zalando Outlet.

Broad incumbents

• Peek & Cloppenburg (P&C Outlet): Major German fashion retailer operating both full-price and outlet stores across Germany. Comparable multi-brand physical retail presence and overlap with Zalando Outlet's German city-center footprint.

Emerging players

• BestSecret: Members-only online off-price fashion retailer owned by Hubert Burda Media, also operating physical showrooms in Germany. Comparable in offering deep discounts on branded fashion and sharing the German off-price market with Zalando Outlet.
• Reserved (LPP): Polish fashion brand operating factory outlet stores across Europe including Germany. Comparable multi-store physical outlet format with deep discount positioning on brand-name fashion.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/Zalando.Outlet
• Instagraminstagram.com/zalandooutlet
• LinkedInlinkedin.com/company/zalando-outlet

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Zalando Outlet