How Lounge by Zalando's Growth Journey Benefits Customers and Partners Across Europe

2025 is an exciting year for Lounge by Zalando. As Zalando’s shopping club celebrates its 15th anniversary and expands to new markets this year, we sit down with Kenneth Melchior, VP Lounge, to talk about the secrets of the shopping club's success with customers as well as brand partners, and his vision for its future.

Kenneth, for those unfamiliar, how would you describe Lounge by Zalando within the broader Zalando ecosystem, and what sets it apart from Zalando’s full-price destination?

Kenneth Melchior: The fundamental difference lies in the experience. On Zalando's main store, customers can browse a comprehensive assortment across various categories like Fashion, Sports, Designer, Streetwear and others to get inspired and find exactly what they need. Lounge by Zalando, however, is a closed shopping club. Every morning, we release new campaigns with alluring articles at reduced prices, available exclusively to our members for a limited time. Our goal, aligning with Zalando’s overall ambition, is to be a go-to destination for discovering exciting fashion and lifestyle deals.

Can you tell us more about the assortment on Lounge by Zalando – what type of deals are we talking about?

With our assortment, we’re debunking a common misconception around off-price: it doesn’t mean ultra-cheap or low quality. In fact, higher-end products sell very well there. As a part of Zalando ecosystem, we’re focused on collaborating with brands that offer the most relevant and high-quality products. In addition to fashion, we’re offering deals on lifestyle products such as home accessories or kitchen utensils. We’re running dozens of new campaigns daily, with offers from brands such as Levi’s, Nike, Love Moschino and Michael Kors.

What are the key advantages Lounge by Zalando offers to both your customers and brand partners?

For customers, it’s about getting great quality products from reputable brands at significantly reduced prices, up to 75% off. They get great convenience and excellent shopping experience they expect from Zalando. But beyond the tangible savings, it’s truly about the joy of discovery. We see a massive spike in traffic every morning at 7am when new campaigns go live, which just shows how much our customers enjoy this aspect. It's all about the thrill of the hunt: many top sellers are gone before 8am, so if you show up at noon, you’re probably too late!

For brand partners, Lounge by Zalando is a strategic entry point for customer acquisition. According to the latest BoF-McKinsey State of Fashion 2025 report, 70% of consumers plan to continue shopping from off-price retailers in the next year, even if they have more money to spend. Our own data shows that 55% of Lounge by Zalando customers also shop full price on Zalando. This provides an excellent opportunity for brands to introduce their high-quality products at a discount and potentially convert new users into full-price customers within the broader Zalando ecosystem.

How does Lounge by Zalando's success contribute to the overall Zalando ecosystem?

Lounge by Zalando significantly supports Zalando's overarching strategy of building a pan-European ecosystem for fashion and lifestyle e-commerce. We help Zalando serve a broader range of customer needs. By encouraging customers to shop across multiple Zalando offerings, we see increased spending and significantly higher retention rates. Moreover, we’re making fashion and lifestyle discovery exciting and joyful for customers. Our engaging experience helps them find incredible deals and makes their journey with us truly rewarding.

How does Lounge by Zalando’s approach help brand partners protect their brand equity while clearing overstock?