Zalando is handing over control of a distribution centre in East Germany to a dedicated logistics operator.
The contract with Fiege will see the latter operating the ecommerce giant’s 30,000 square metre location at Brieselang from April.
The site is Zalando’s smallest logistics hub, a quarter of the size of those at Lahr, Mönchengladbach and Erfurt. It acquired the site in 2011.
The plan is for Fiege to begin to capabilities to other users, with Zalando guaranteeing a minimum order volume until the middle of 2020 to ease the transition. The 1000 employees working there will remain in place and Zalando said it is committed to supporting the development until mid-2024.
Financial details of the transaction were not disclosed.
David Schröder, SVP Convenience at Zalando, said that the move was due to reaching capacity limits at the site. He also said that it was impossible to install modern technologies such as automation that were standard in other centres at the site.
“Over the years it has therefore become increasingly difficult for us to operate the location efficiently for our purposes, and an end to Zalando in Brieselang was foreseeable. That’s why it was important for us to find a solution that would offer our employees prospects for the future.”
Christoph Mangelmans, MD of fashion and online retail at Fiege, said: “We firmly believe in the potential of the location and with our concept we are opening up a future for Brieselang that would not have existed before.”
He added: “The logistics centre in Brieselang is conveniently located and, with its proximity to the Berlin conurbation, is an interesting location for ecommerce logistics. We see a good potential for successfully operating the location, especially thanks to the experienced team of employees.”
Image credit: Zalando