New Warehouse to Support 62% Growth Target for Zappos

Starting from almost nothing in 1999, Zappos.com CEO Tony Hsieh has targeted $600 million in sales for 2006, up from the $370 million in sales that the online footwear retailer reported in 2005.
The company recently completed construction of a new warehouse in Kentucky, which adds an additional 625,000 sq. ft. on top of the 280,000 sq. ft. of the original warehouse. New material handling systems are expected to be fully operational in time for our busy holiday season this year.
The Las Vegas-based company now counts over 4 million customers. It offers over 800 brands of shoes and carries 2.5 million pairs of shoes in its warehouse, representing over 100,000 styles, with a total retail value of $200 million. Two-thirds of its sales come from repeat customers.
While executives continue a strategy of running the business at break-even (within 1% of net sales) in order to maximize growth, Zappos.com managed to improve efficiencies in all of departments, squeezed out a small profit in the first and second quarter of 2006.

Source: Zappos.

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