12. March 2012–
Zalando, Rocket Internet's online shoe and accessory brand, has announced expansion into Scandinavia today. The launch, which is scheduled for May 2012, follows Zalando's rapid European spread, which although has led to a rise in net sales, also resulted in an operating loss, according to a recently released report by funders Kinnevik.
Sweden, Finland, Denmark and Norway will now be the focus markets for Zalando for the first half of 2012, and the company is also opening its own logistics centre plus a new warehouse construction project in Erfurt to start operations in 2012.
"Our growth is the result of a consistent marketing strategy and a stable funding with a strong group of investors," said Robert Gentz, founder and CEO of Zalando. Kinnevik has sunk a whopping €95 million investment into the firm, bringing Swedish investment in the company to €120 million.
Zalando's operating loss was put down to “strong growth and geographical expansion”, a rate that the company clearly wants to keep up to achieve the economies of scale of its massive investments.
Russian VC and Facebook shareholder Yuri Milner recently invested a 4 per cent stake in the company, prompting speculation of a future Russian rollout.
Image credit: flickr user Michael Panse