Mass layoffs have moved beyond tech and touched retail as well. Zalando plans to cut 5% of its global staff, about 850 people from a total workforce of 17,000. Ebay is trimming 4% (roughly 500 employees), and Shopify is reducing its workforce by 10% (about 1,000 positions). Even Amazon has continued to pare back, announcing significant job reductions that impact expansion into new logistics facilities through 2024. Companies cite the same root cause: inflation has dented consumer confidence and buying power. The pandemic-era surge in online shopping has cooled, with ecommerce now hitting more normal figures as limits ease and markets stabilize.
When markets were roaring, growth felt unstoppable. Now executives acknowledge that sustaining pandemic-era speeds is unlikely. Francisco Aranda, head of logistics employers at UNO, notes that the 2021 e-commerce spike in Spain reached 57.7 billion euros, up 11.7% from the previous year, with a 5.8% rise the year before that. While exact 2022 growth data for Spain remains incomplete, regional declines in online sales are clear. Across Europe, January data show a 2.2% drop in ecommerce, with trade groups warning that sales are normalizing after an extraordinary period. Spain’s online share in 2021 reached 24%, higher than both the European average and the United States.
From late 2022, the growth curve cooled. Inflation rose, central banks lifted rates, and economic uncertainty trimmed household disposable income, directly impacting online purchases. The fashion sector illustrates the shift: Acotex reports online fashion sales slipping from 20% in 2020 to 12% in winter 2022. The slowdown began to show in the last quarter of 2022, as analysts watched Christmas projections shift in the wake of Black Friday dynamics.
back to normal
The impact stretched across multiple categories, especially nonessential goods such as electronics, fashion, sports gear, and building materials. With food purchases excluded, these products still found a viable online path to balance households’ reduced time at home during the pandemic era. DHL Parcel Iberia’s Daniel Pastrana explains that while online spending endured for some essentials, buyers grew price-sensitive on shipping costs and often preferred waiting for delivery when it saved money.
Zalando epitomizes the current reality. The marketplace has posted losses since early 2022, with third-quarter red ink reaching 35.4 million euros. Amazon, by contrast, wrapped the year with a substantial net loss after a record profit the prior year. Neither company offered upbeat commentary about the market environment.
The online delivery boom has cooled noticeably. Glovo reported a 2022 gross loss of 304 million euros, Delivery Hero faced a further 623 million euros in losses, and GoPuff exited the Spanish market due to softened demand, while Gorillas was acquired by Getir. Aranda remarks that the volume consolidation reflects a shift away from the post-pandemic growth frenzy toward more sustainable business models. He notes that the industry is recalibrating to the new normal, a landscape very different from the covid period.
Part of the recalibration questions whether 15 or 20 minute delivery remains necessary. Pastrana adds that the market is smaller than it appears, with many customers willing to pay a premium for ultra-fast service only in select situations such as fast food or peak times. Otherwise, shoppers often value lower shipping costs and are patient enough to wait if it means savings.
recovery in 2024
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A slower global economy pushes ecommerce teams to stay ahead of the curve. Analysts warn that growth years may be followed by a real recovery not until 2024, contingent on inflation cooling and interest rates stabilizing. Inditex, Asos, and El Corte Inglés are experimenting with returns charges and minimum order values to weather the climate. What remains clear is that once the bump passes, ecommerce should resume an upward trajectory. Most consumers who started buying online during the pandemic have maintained the habit, and the share of online purchases is expected to keep rising gradually. GLS suggests blending online and physical stores to deliver a more engaging and memorable consumer experience.