Zalando, a leading German online fashion retailer, has announced plans to close its distribution center in Erfurt, a city in eastern Germany, as part of a broader effort to restructure its European logistics network. The move will affect approximately 2,700 employees, representing nearly one-sixth of the company’s workforce. The Erfurt facility, which processes, packs, and ships online orders, will cease operations by the end of September.
The decision is part of Zalando’s strategy to build an integrated and scalable platform, following its acquisition of local rival About You for 1.1 billion euros last year. The company aims to create a pan-European platform to compete with rising Chinese online giants such as Temu and Shein. Zalando will discontinue operations at three warehouses outside Germany operated by corporate partners, further streamlining its logistics network.
The Erfurt distribution center is the city’s largest private employer, and the closure has been met with regret from local officials. Mayor Andreas Horn expressed his deep regret over the company’s decision, which will have a significant impact on the local economy. Zalando has committed to immediately beginning negotiations with unions to discuss options for affected employees.
The company’s restructuring efforts are driven by its ambition to create a more flexible and efficient logistics network. By integrating its operations, Zalando aims to reduce complexities, increase efficiencies, and enhance speed. The move is expected to enable more flexible stock holding and universal order fulfillment, driving seamless operations across its platform.
Zalando’s decision to close its Erfurt distribution center reflects the company’s focus on building a competitive and sustainable business model. As the e-commerce landscape continues to evolve, companies like Zalando must adapt to changing consumer demands and market trends. The closure of the Erfurt facility marks a significant step in Zalando’s efforts to position itself for long-term success in the European online fashion market.
