Shopping on Zalando nearing an end? In recent days, the most internet-savvy fashionistas among us could not escape the news about the German online clothing retailer. And one thing is clear: the headlines aren’t comforting! Site closures, layoffs… bad news is mounting for Zalando. As the winter sales have just begun, will we still be able to shop as we used to on the marketplace? Here’s the situation.
A Logistics Restructuring to Stay Competitive
All of it started with a statement from the German group. On January 8, Zalando announced that, by fall 2026, its Erfurt site in eastern Germany would be closed. This is a distribution center—an expansive logistics site employing nearly 3,000 people, equating to one in six Zalando employees. Unfortunately, most if not all of these people will likely end up unemployed, unless the company and the unions can reassign them elsewhere. And beyond the human impact of this decision, when a company lays people off, it’s never a good sign…
So, why did Zalando take such a radical step? Is it a sign that the website is in trouble, or that it might shut down altogether? Don’t panic: we’re not there yet! In reality, Zalando needs to modernize its logistics network across Europe. According to the group’s leadership, it must accelerate the automation of its operations. Is it to avoid being outpaced by Asian competition? Not really, according to Robert Gentz, co-CEO of the group, who says that “Zalando’s positioning is very different from Shein or Temu,” the German platform offering “much higher quality brands” and targeting “different customer segments.” Zalando simply wants to stay competitive, to continue offering the best prices and the fastest delivery times.
This is what Zalando’s management confirmed: “we will continue to invest in cutting-edge logistics technologies, automation, and more sustainable practices across our pan-European logistics network,” the company said. So there’s no plan to shut down! On the contrary, Zalando expects annual sales growth of between 5% and 10%. New automated logistics centers will replace the old ones (including in Germany), bringing the number of distribution centers from 12 to 14, spread across seven European countries.
A Brand That Is Reinventing Itself
Rest assured: Zalando is thriving. Like any company, the German group is constantly seeking to improve its processes, modernize its supply chain, and become ever more efficient to satisfy its customers. The recent announcements of site closures are not the sign of a retailer retreating in the face of Asian platforms, but rather proof of a brand investing in its future. Ready to make tough decisions, if necessary…
Karla Miller RADIO
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