The site will be shut down by the end of September 2026, Europe's largest online fashion retailer announced on Thursday. Around 2,700 employees will be affected by the decision. Zalando stated that negotiations regarding a social plan with the works council will begin. In addition, contracts with external operators at three logistics sites abroad will not be renewed.
The fashion retailer acquired the smaller rival About You last year. The company expects the transaction to generate an additional annual operating profit of 100 million euros in the long term. In the third quarter, About You contributed to a revenue boost for Zalando. The main growth driver is the business-to-business segment. With "Zeos," Zalando offers its logistics infrastructure to third-party companies, complementing the "Scayle" shop software developed by About You.
(Reporting by Hakan Ersen, edited by Ralf Banser. For inquiries, please contact our editorial team at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
