Alza.cz has had a record year. But for the first time, they are reporting a drop in numbers
Only 18 million orders from 5.25 million customers contributed to the record result, the chairman of the board and company founder Aleš Zavoral writes in the report. At the same time, he adds that the company managed to maintain rapid growth only in the first quarter, and in the second and fourth quarters the company’s numbers fell. He did not disclose the reason in the annual report, and the company itself refused to comment on it.
Alza’s results confirm the prevailing macroeconomic trends of the year before last, says economist Tomáš Pfeiler from Cyrrus. “In its beginning, the e-commerce sector was riding a wave of massive euphoria. Lockdowns have taught customers to shop online. It also helped that a significant part of services were closed due to restrictions, so households realized their consumption mainly in the goods segment, which played into the hands of sellers like Alza,” he says.
“Sales in the fourth quarter already reflect the reversal of these trends. With the loosening of the economy, spending on services began to favor households again, and to a certain extent they moved back to brick-and-mortar stores,” the economist describes the situation on the market.
It is difficult to predict what 2022 will look like for Alza. However, the fact that the entire e-commerce market experienced a drop in sales for the first time in history can be a certain guide. Zavoral in the outlook for last year in the report still talks about Alza’s suspicions.
“Even in 2022, Alza will continue to strengthen its position as the number one on the Czech market. For this purpose, considerable funds will be invested so that the number of complaints continues to decrease and customer satisfaction increases. The company also reckons with the necessity of reducing its costs, because with regard to the reopening of brick-and-mortar sales, a decrease in sales can be expected,” writes Zavoral.
Zavoral further noted that the company was strengthened by 800 employees during 2021, and at the end of it, approximately 3,500 employees were working in the green Alsatian jersey. The number of AlzaBoxes also grew in all their markets, which reached 1,800 at the end of the year before last year. Today, according to their own website, they already have 2,400 in the Czech Republic, Slovakia and Hungary.
Alza also saw slight changes in customer behavior. Among the best-selling items in 2021 were books and Legos, as well as respirators. The top ten best-selling products are no longer the domain of electronics.
Last year, according to Heureka and the Association for Electronic Commerce (APEK), the total turnover of domestic e-commerce fell from 223 billion crowns to 197 billion crowns, and when online sales fell by 12 percent. Compared to 2020, however, the overall market numbers remain slightly higher.