"German online fashion retailer Zalando said Thursday it would close a distribution centre in the eastern city of Erfurt with 2,700 employees to restructure its European logistics network. The centre, which accounts for nearly one-sixth of Zalando's workforce, will cease operations by the end of September, the company said in a statement. "We have made the difficult but necessary decision to close our fulfilment centre in Erfurt," Zalando said, using a term for a site where online orders are processed, packed and shipped."
"Zalando last year acquired local rival About You for 1.1 billion euros to build a pan-European platform amid rising competition from Chinese online giants such as Temu and Shein. "Following the successful teaming up between Zalando and About You, we are focusing on building an integrated and scalable platform that supports our growth ambition," Zalando said. "This will enable more flexible stock holding and universal order fulfilment, driving seamless operations, reduced complexities, increased efficiencies and enhanced speed.""
Zalando will close its Erfurt fulfilment centre, affecting 2,700 employees, and cease operations there by the end of September. The centre represents nearly one-sixth of Zalando's workforce. The company will immediately begin negotiations with unions on options for affected employees. Zalando will also discontinue operations at three warehouses outside Germany operated by corporate partners. The company acquired About You last year for 1.1 billion euros to build a pan-European platform amid rising competition from Temu and Shein. The strategy aims to enable flexible stock holding, universal order fulfilment, reduced complexities, increased efficiencies and enhanced speed.
Read at The Local Germany
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