Zalando, the leading German online fashion retailer, announced plans to close its distribution centre in Erfurt, a city in eastern Germany, as part of a broader restructuring of its European logistics network. The Erfurt facility, which processes, packs and ships online orders, will cease operations by the end of September, affecting roughly 2,700 employees—nearly one‑sixth of the company’s workforce.
The closure follows Zalando’s strategy to build an integrated, scalable platform after acquiring local rival About You for €1.1 billion last year. By creating a pan‑European platform, the company aims to compete with rising Chinese online giants such as Temu and Shein. In addition to the Erfurt site, Zalando will discontinue operations at three warehouses outside Germany that are run by corporate partners, further streamlining its logistics network.
Erfurt’s distribution centre is the city’s largest private employer, and local officials have expressed regret over the decision. Mayor Andreas Horn highlighted the significant impact on the local economy. Zalando has pledged to begin immediate negotiations with unions to discuss options for the affected employees.
The restructuring is driven by Zalando’s ambition to develop a more flexible and efficient logistics system. By integrating its operations, the company seeks to reduce complexity, increase efficiency and improve speed, enabling more flexible stock holding and universal order fulfillment across its platform.
Closing the Erfurt facility reflects Zalando’s focus on building a competitive, sustainable business model as the e‑commerce landscape evolves. The move marks a key step in positioning the company for long‑term success in the European online fashion market.
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