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Zalando’s fulfilment costs rise from warehouse investments

Zalando

Zalando saw its fulfilment costs rise in the first quarter of the year as it ramps up its delivery speeds.

The German retailer said costs had risen 0.5 percentage points as a percentage of revenue, driven by the investment in new fulfilment centres in Sweden and Poland and spending on same and next-day delivery capabilities in metropolitan areas.

Higher transport costs due to increased carrier prices also had an impact.

The fashion company invested €42.3 million capex in total, which included spend on infrastructure around fulfilment centres.

Overall, Zalando’s revenue for the quarter was €1.38 billion, up 15.2% year-on-year.

Zalando recently ended free delivery in three more European countries. Customers will now have to pay delivery charges on orders under a specified certain value in the UK, Ireland and Spain.

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