Last week, GXO Logistics unveiled two significant contract victories: one with Waitrose in the UK and another with Eddie Bauer in the United States.
GXO has extended its partnership with Waitrose, a premium grocery retailer in the UK boasting over 330 stores. This collaboration, which has been on-going for the past three years, will see GXO continue to manage two critical distribution hubs within Waitrose’s Milton Keynes campus. These hubs comprise the 950,000 square-foot Magna Park national distribution centre and the 320,000 square-foot Brinklow regional distribution centre.
At Magna Park, a team of 860 GXO staff members efficiently pick and dispatch 85 million cases each year. Simultaneously, at the Brinklow distribution centre, 810 GXO staff members handle the picking, dispatching, and delivery of 51 million cases of chilled and fresh products annually. GXO has exciting plans to implement cutting-edge technologies to enhance efficiency and service quality at both distribution centres.
In a separate announcement, GXO revealed that it had secured a contract with the American outdoor brand Eddie Bauer. This agreement aims to optimize Eddie Bauer’s warehousing operations, including the construction of a fully automated 385,000 square-foot logistics centre. GXO will oversee Eddie Bauer’s retail, e-commerce, and reverse logistics operations, with the transition set to occur in the first half of 2024.
GXO will introduce a totes-to-person picking solution utilizing technology from GreyOrange, a warehouse robotics company renowned for its automated warehouse systems, along with autobagger packing technology.
The e-commerce logistics victory with Eddie Bauer comes shortly after GXO’s acquisition of PFSweb, a leading eCommerce order fulfillment provider with a global presence. During the latter part of 2023, GXO announced contract wins or extensions with notable companies such as Canon, Red Bull, B&Q, and Picard.
In 2022, GXO recorded a remarkable 29% year-on-year increase in profits, amounting to $197 million. This strong performance was in part attributable to a 13.3% rise in revenues, reaching $9 billion during the same period. 2022 marked GXO’s first full year as an independent company, and it has displayed promising results. The acquisition of UK competitor Clipper Logistics directly contributed to a 25% year-on-year revenue growth in the UK, reaching $3.29 billion in 2022. The Clipper acquisition also led to a 19% growth in reverse logistics in the fourth financial quarter.
US operations also experienced robust growth, with revenues rising by 16% to $2.86 billion in 2022. While other geographical regions largely maintained stable revenues, there was a slight dip in France and a -0.7% decrease in Italy and other areas. These trends are primarily attributed to on-going macroeconomic factors impacting Europe, stemming from the energy crisis and the effects of inflation on consumer behaviour. Nevertheless, the contract logistics firm achieved an impressive 24% growth in revenues in its Technology and Consumer Electronics segment, totalling $1,337 million in 2022.
GXO Logistics is among the logistics companies featured extensively within GSCI, TI’s comprehensive online research and data platform.
Author: Paul Chapman
Source: Ti Insights
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