Retailers shift their ad spending from TV, radio and print ads to digital ads.
Total sales in 2011 are expected to approach 250 million euros (US$352.8 million).
One of Europe’s biggest online retailers of pet supplies is reporting a strong first quarter.
For the quarter ended May 10, Zooplus AG, No. 47 in the Internet Retailer Top 300 Europe reported:
- Sales increased about 60% to 60.6 million euros (US$85.5 million) from 37.8 million euros (US$53.4 million) in the first quarter of 2010.
- Net loss of 956,202 euros (US$1.3 million) compared with net income of 107,994 euros (US$152,444) in the first quarter of 2010.
Zooplus, a Germany-based web-only merchant that sells online in 13 European countries, including France, Germany, Italy, Spain and the United Kingdom, says the company’s first quarter loss is attributed to expenses occurred in opening a new central fulfillment center in Stauffenberg, Germany.
“The turnover growth has been positive and confirms our confidence for the full year,” says chief financial officer Florian Seubert. “Lubricating the growth was the opening of our new logistics center. This is another building block in our long-term strategy.
Zooplus, which carries an online inventory of 7,000 products, expects sales to increase about 29% to 250 million euros (US$352.8 million) in 2011 from 194 million euros (US$273.7 million) in 2010. Zooplus also expects sales to exceed 320 million euros (US$451.1 million) in 2012.