Zalando is stepping up its investment in automation, rolling out up to 50 AI-driven robots across its European fulfilment network in a move that underlines how central logistics has become to its growth story.
The push follows Zalando last week delivering a robust set of results for 2025, showcasing both the scale of its platform and the growing role of artificial intelligence (AI) technology in modern retail supply chains.
The Berlin-based group reported revenue of €12.3bn, up 16.8 per cent year on year, while adjusted EBIT rose to €591m. And the fashion company is gunning for growth in 2026, with EBIT expected to reach as much as €740m.
Much of that confidence rests on technology, with the retailer revealing it is scaling AI across logistics, forecasting and engineering, reporting improvements such as more accurate delivery promises and faster operational planning.
But the outlook also comes at a time of renewed geopolitical tension, most increasingly through disruptions to the global supply chain due to the Middle East conflict.
AI in logistics
Zalando has been investing heavily in AI across its operations, including supply chain planning, delivery forecasting and engineering productivity. The company says this is already improving delivery accuracy and operational speed.
At the centre of Zalando’s latest move is a partnership with robotics firm Nomagic, aimed at automating one of fashion logistics’ most persistent challenges: handling shoeboxes at scale.
Following a pilot that achieved 100,000 picks per day, the retailer is now expanding deployment across Europe, with robots already live in sites in Germany and Italy and further rollouts planned in the Netherlands, Sweden and France.
The machines use AI and computer vision to recognise different products and adjust their grip in real time, allowing them to pick, scan and sort items into automated systems. The aim is to improve both speed and accuracy in high-volume fulfilment environments.
Zalando vp logistics network Marcus Daute, said the early results had driven the decision to scale.
“The testing phase with Nomagic proved that their robotics are an excellent fit for Zalando’s logistics centres. Following the quick and successful deployment of the first ten units, we have decided to scale our partnership, gradually rolling out more robots as our network evolves.”
He added that automation is becoming essential at scale. “The sheer scale of our operations demands smart automation that works with our people, not alongside them. By delegating simple processes to AI-powered robots, we achieve the operational excellence our customers and business partners expect while supporting employees’ growth.”
The investment reflects a broader shift across retail supply chains, where automation and AI are increasingly used to manage complexity, reduce errors and handle high product volumes.
From a supply chain perspective, however, the gains are likely to be gradual. “I think most of the gains will be incremental and will build on internal feedback,” says Bloomberg Intelligence retail analyst Charles Allen.
He points to demand forecasting as a key example, where improvements come over time as systems learn from previous seasons.
“Demand forecasting, key to improving delivery times, is likely to be better in a second season, having seen what happened in the first and so on.”
In practice, this means tighter inventory management, better stock allocation and more reliable delivery promises. But it is an evolution rather than a transformation.
Allen is also cautious on whether AI will create a meaningful competitive edge. “Only if there are other retailers who don’t participate in using AI. My feeling is that most retailers are going to make use of AI to improve their process and that there will be little competitive advantage gained.”
There are also limits to how far AI can go in addressing structural supply chain challenges.
“Possibly although there is much more to changing a supplier location than just identifying it,” he says. “It has to have all the compliance on working conditions, product quality, sub-contractors etc. Most retailers probably have databases to do this. AI may well help in keeping them current.”
Middle East crisis: how exposed are fashion supply chains?
While Zalando is focusing on internal efficiency, external pressures are building. The company has said its guidance does not include any potential disruption from the Iran conflict, which is already pushing up energy costs and raising fresh concerns around global shipping routes,
However, for retailers, the geopolitical crisis’ impact is both operational and consumer-led. Higher fuel costs increase freight and distribution expenses, while also feeding through to household budgets.
“Fuel prices will rise immediately and there will be knock-on effects into the prices of other necessities,” Allen says. “This inevitably leaves less spending power for discretionary items, including apparel. Clothing is usually less affected than larger items.”
Shipping disruption is another concern, though the immediate effect on fashion may be limited. “I think that much of the seaborne traffic was still going round the cape,” he says. “Some items are carried by airfreight with the scale of the Gulf airlines, meaning that some of this would be transshipped there. Probably a minor rather than major impact.”
That reflects a supply chain already adapted to disruption, with many routes adjusted following earlier shocks. Allen says retailers are also better prepared than they were five years ago, learning from previous disruptions the supply chain sector, faced during the pandemic and past geopolitical shocks.
“Yes, there will be more contingency plans in place,” Allen adds.
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