Zalando is ready to conquer the Nordic region. The online fashion platform successfully completed its location search and will open its first Nordic fulfillment center in Sweden later this year. The fulfillment center will be built in Brunna, near Stockholm, and is meant to meet the demand of its customers in Sweden, Denmark, Finland and Norway.
Earlier this month, Zalando announced its revenue increased by 23.1 percent to about 980 million euros in the first quarter of this year, with 475 million euros coming from its home country Germany and Austria and Switzerland. For the Nordic markets, the fashion company wants to increase its revenues to 1 billion euros in the upcoming years.
Expanding its logistics network locally
“In order to do so, we need to further invest in our platform strategy and expand our logistics network locally so we can get closer to our Nordic customers”, CEO Rubin Ritter explains. “I am happy to announce that operations in our first fulfillment center near Stockholm will start within the next months.”
Cut the delivery times in the Nordics
When the new 30,000 sqm fulfillment center is running, customers in all Nordic markets will receive their orders faster. Next day deliveries in the Nordic capitals Stockholm, Copenhagen, Helsinki and Olso could be possible and there’s potential for same day delivery in Stockholm. The first tests and operations will start this year, but it’s expected that full operations will be up and running in 2018.
Ecommerce in the Nordics
“Ecommerce in the Nordics is mature and developing fast. This is why we are investing in establishing a new fulfillment center and extending our selection of more than 100 Nordic brands”, said Kenneth Melchior, Cluster Head Nordics at Zalando. “Having this setup in place, we are also thinking of future test pilots for innovative services such as return on demand.”
In December 2015, Zalando opened its first fulfillment center outside Germany, in the North of Italy. Later it also opened fulfillment centers in Poland and France.