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Retailer Zalando launches AI shopping agent as margins squeezed

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Retailer Zalando launches AI shopping agent as margins squeezed

Business News Tech AI Retailer Zalando launches AI shopping agent as margins squeezed

Zalando has launched its inaugural AI shopping agent, aiming to refine its online retail experience significantly. This innovative platform enables users to shop across various online stores using intelligent AI assistants. Although shares dropped by 5%, the company saw a revenue uptick of 5.1% in Q3. However, the gross profit margin decreased due to heightened investment in technology and infrastructure as competitors embrace AI amid rapid industry transformation.

Top European online fashion retailer Zalando on Tuesday launched its first AI shopping agent amid concerns that artificial intelligence could disrupt online retail, after reporting third-quarter gross margin below market expectations. Shares in the German company fell 5% in early trading. Zalando reported a gross profit margin of 38.7% in the quarter, missing expectations partly due to investments, analysts at Jefferies and JPMorgan said in notes to clients.

The industry is facing disruption from so-called agentic commerce , in which autonomous AI agents execute the full purchase cycle for goods, from price comparison across multiple retailers to payment, on behalf of human shoppers. "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. As shoppers increasingly use AI to compare prices, check product availability and get recommendations, retailers are racing to adopt AI tools to remain competitive and expand the range of products available on their platforms.


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