U.S. logistics firm GXO aims to increase sales in Germany
27/04/2022 14:58
FRANKFURT, April 27 (Reuters) - The world's largest contract
logistics provider, U.S.-based GXO GXO.N , said on Wednesday it
hoped to significantly increase its share of sales in Germany
over the next five years with warehouse-related services in
Europe's largest economy.
GXO, which was spun off from U.S. logistics company XPO
XPO.N and went public last year, recently agreed to buy
Britain's Clipper Logistics CLG.L for around $1.3 billion to
tap into rising demand for warehouse space around the world.
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"With the acquisition of Clipper, we are creating the
conditions to have a stronger presence in the German market and
reach critical mass," GXO Chief Strategy Officer Neil Shelton
told Reuters in an interview.
He also said the company was not affected by higher energy
costs after Russia's invasion of Ukraine, while rising labour
costs increased demand for automation GXO can offer in its
warehouses.
Shelton added the company, which manages outsourced supply
chains in addition to warehousing, was not dependent on the
pandemic-related online retail boom.
"We have contracts with brand manufacturers who want to
bring their goods closer to the consumer," he said. "We
personalise the products, assemble them and send them on their
way to consumers," he said.
Shelton added he also sees opportunities in the food market,
where GXO already works with the French supermarket giant
Carrefour CARR.PA .
"New technologies will give the business a further boost,"
Shelton said. "Robots can speed up and improve the handling of
food."
The customers of GXO, which competes with the contract
logistics unit of Germany's mail carrier Deutsche Post
DPWGn.DE , include Zara, Zalando ZALG.DE and recently also
the German online pet shop operator Zooplus ZO1G.DE .
(Reporting by Matthias Inverardi; Writing by Zuzanna Szymanska;
editing by David Evans)
((zuzanna.szymanska@thomsonreuters.com; +49 30 4036 18603;))