GXO_Waitrose Image

Source: GXO

GXO has run two of Waitrose’s distribution centres in Milton Keynes since February 2020

Waitrose has extended its partnership with logistics provider GXO to manage two of its key distribution hubs.

The businesses have not disclosed the length of the new contract, but it takes the collaboration between the pair beyond the terms of the initial deal, first signed in February 2020, prior to XPO Logistics’ rebrand to GXO.

Under the new agreement, GXO will continue to operate the Magna Park national distribution centre for Waitrose’s ambient supply chain, as well as Brinklow, the national hub for its fresh and chilled lines. Both are located at Waitrose’s Milton Keynes campus.

“We’re delighted that Waitrose & Partners has rewarded our service over the past three years by extending our agreement,” said GXO managing director Gavin Williams. “We look forward to deploying our expertise in the grocery sector to help further reduce costs and raise efficiency and productivity for Waitrose.”

Waitrose head of distribution operations and transport Doug Kay said GXO had become a “trusted partner“ during the three-year partnership.

“We’re working together to implement the latest technology, to even further improve our supply chain – ultimately benefiting our branches and customers alike,” he said.

The news comes as The Grocer understands Waitrose is set to unveil a new multi-year strategy aimed at modernising its stores, systems and infrastructure network, as it looks to reverse the sales and market share decline of the last couple of years.

In March, Waitrose also extended its 20-year partnership with logistics giant Wincanton, to manage its wines and spirits logistics network. Under the new five-year contract, Wincanton will continue manage the storage and distribution of booze from its bonded warehouse facility in Greenford, London.