Online retailer Zalando returns to growth thanks to premium brands

A Adidas shoebox stands above a Zalando cardboard box on a staged scene in Berlin, Germany June 8, 2016. REUTERS/Axel Schmidt/File Photo

(Reuters) -Online fashion marketplace Zalando returned to growth in the first quarter after three consecutive declines in gross merchandise volume, as bets on more premium brands and its business servicing other retailers paid off.

While fast-fashion retailer Shein is a threat to Zalando's revenues and customer numbers, Chief Financial Officer Sandra Dembeck said the company does not want to compete on price, instead trying to differentiate itself with a range of higher-priced brands such as On Running, which it recently added.