Russia's biggest online retailer, Wildberries, has decided to build a central logistics hub in Slovakia to service the Western European market. The investment cost of the project is estimated at €200 million. Wildberries originally was planning to launch its European expansion from Poland, but then it received an interesting proposal from Slovakia.
The new hub will have 300,000 square meters of storage space and is slated to be completed during the coming five years, creating 15,000 jobs and generating projected annual sales of around €2.8 billion.
In the first half of 2019, Wildberries experienced a 79 percent jump in revenue to 85 billion rubles (€1.15bn-$1.3bn), becoming the biggest Russian fashion retailer. The company runs a network of 5,500 pick-up-points in Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.
Wildberries is expected to expand its Slovakian project in the future, building smaller warehouses in other countries of the European Union and launching pick-up-points across the region.
Wildberries was founded as an online marketplace for shoes and clothes. Those segments are still generating up to 70 percent of the company's overall revenues. The company is selling the products of 13,500 different Russian and foreign companies.