German etailer Zalando is investing €200m (£179.2m) in a new fulfilment centre, which will cover 140,000 sq ft once completed.
It will cater to customers in western Europe, particularly the Netherlands, Belgium, Luxembourg, France, Spain and the UK, to help reach the company’s 2023/24 growth target.
Building on the fulfilment centre, which will be located in a business park in Bleiswijk, Rotterdam, will commence this summer. It is expected to be ready by summer 2021.
The centre will have a total storage capacity of 16 million items.
Senior vice president of customer fulfilment, Jan Bartels, said: “A strong logistics network is the foundation for realising [Zalando’s] growth strategy.
“This is an important step forward in building the infrastructure to achieve €20bn (£17.9bn) in gross merchandise volume by 2023/24.”
The business also hopes that it will reduce delivery lead times in Benelux markets (Belgium, the Netherlands, and Luxembourg), which are an “integral role in the growth ambition of Zalando” said Kenneth Melchior, director of Northern Europe.
He added: “Over the next five years we aim to more than double revenues in [the Benelux] region. The opening of our fulfilment centre is crucial in enabling this growth.
“We look forward to enhancing our customer proposition by reducing delivery lead times in the Benelux area and introducing services like next and same-day delivery once Bleiswijk is fully operational.”
The centre is expected to create 1,500 jobs in the mid-term.