Zalando will close its logistics center in Erfurt, the state of Thuringia, the fashion retailer announced on Thursday. Around 2,700 people currently work at the site, accounting for roughly one-sixth of the company’s total workforce. Zalando described the move as a “difficult but necessary decision,” citing a structural reorganization of its Europe-wide logistics network. The decision has drawn sharp criticism from politicians.
Zalando said the aim was “to optimally seize the market opportunities available to us.” Against this backdrop, the shared logistics network with online fashion retailer About You, which Zalando acquired last year, had been “thoroughly reviewed.” In addition to closing the Erfurt site, contracts with external service providers at three locations outside Germany will also expire.
Former Thuringian state premier Bodo Ramelow of the Left Party criticized the decision as “brutal predatory capitalism.” “With substantial public funding and massive support from the state of Thuringia, Zalando built up the Erfurt site,” he said. The company had now swallowed up its competitor and was closing locations to generate million-euro profits.
Erfurt’s mayor, Andreas Horn, said: “I deeply regret this decision, especially because we had no chance to influence it.” “I would have urgently wished for earlier involvement of the city in this corporate decision,” he added. However, the company had assured him that the move was not due to conditions in Erfurt or eastern Germany.
In the medium term, Zalando plans to operate more logistics centers than it does currently. The number is set to rise from 12 to 14. Plans include opening a new site in Gießen this summer, where the company says 1,700 jobs are to be created. Founded in 2008, Zalando is Europe’s market leader in online fashion retail. The company employs around 16,000 people, nearly half of them in Berlin.
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