Zalando plans summer spending spree2012-04-19 5
Online retailer Zalando will spend another €70 million on its new logistics centre in home base Germany – and may be planning expansion into Poland, Spain and Belgium.
Zalando this week announced a €70 million, 48,000 square feet extension (two new buildings) to its new logistics centre at Erfurt in central Germany. The centre’s main building will cover 78,000 square feet and is due for completion this year. Construction on the two extension buildings will start in summer 2012, for completion mid-2013.
Next stops: Scandinavia, Poland, Spain, Belgium
Zalando shareholders DST Global (Russia’s Yuri Milner) and Kinnevik (Sweden) recently committed to a further financing round. Each made use of an option granted in January to purchase an extra five per cent stake in the company.
So, in addition to the new logistics centre, where will Zalando’s fresh funds go?
The Financial Times (subscription only) reports Zalando’s next targets will be Poland, Spain and Belgium, “soon after going live in Scandinavia”.
As we’ve previously reported, Zalando plans to expand into Sweden, Finland, Denmark and Norway this May. The online retailer, which started up in Germany in 2008, is also active in Germany, Austria, Switzerland, the Netherlands, France, Italy and the UK.
Zalando – backed by DST, Kinnevik, Holtzbrinck Ventures, Tengelmann Ventures and original investors Rocket Internet - posted an operating loss last year, despite €200m of sales in the first six months of 2011, citing “strong growth and geographical expansion”.
Image credit: flickr user Dannerzz