GXO extends Co-op transport deal for five more years

GXO has secured a five-year contract extension with Co-op, taking the transport partnership between the two groups to more than 20 years.

The agreement covers GXO transport operations at Avonmouth, Andover and Lea Green, supporting deliveries to more than 1,000 Co-op stores in the UK.

Co-op's food retail estate includes more than 2,300 stores nationwide, while the GXO contract supports a network serving a large part of that footprint. The arrangement focuses on transport for store deliveries rather than the mutual's wider businesses, which also include funerals, insurance and legal services.

For GXO, the renewal preserves one of its longest-running customer relationships in the UK grocery and convenience market. The groups will continue working on efficiency, service and resilience across Co-op's transport network, drawing on GXO's experience in fast-moving consumer goods operations.

The deal also highlights the continued use of outsourced logistics by major retailers seeking to maintain store deliveries across dispersed networks. Convenience chains in particular depend on frequent replenishment, and transport performance can directly affect product availability in local stores.

GXO employs more than 150,000 people across more than 1,000 facilities globally, according to company figures. Headquartered in Greenwich, Connecticut, it focuses on contract logistics for large corporate customers.

Co-op is owned by about 7.2 million active member-owners and generates annual revenue of more than £11 billion, according to the company. Alongside its own food stores, it also has a wholesale business that supplies about 8,000 other outlets.

Community links

Alongside the operational agreement, both groups highlighted community work linked to the transport network. Staff across GXO's Co-op operation contributed more than 1,500 hours of volunteering and engagement over the past year.

Teams also raised money for charities including Barnardo's and the British Heart Foundation through colleague-led activity across the network. GXO also works with three Co-op academies on mentoring, employability workshops and site engagement, while directing apprenticeship levy funding toward skills, training and community initiatives.

That emphasis reflects a wider trend among large logistics and retail employers to link commercial contracts more closely to local employment and social programmes. Distribution operations often represent some of the largest clusters of jobs in their areas, making training, volunteering and school engagement part of the broader relationship between companies and communities.

Chris Hyde, Managing Director Food and Beverage, GXO UK&I, said the renewal recognised the work already carried out through the partnership.

"This renewal reflects the brilliant service and operational leadership that our teams deliver every day for one of our longest-standing partners," Hyde said.

He said GXO would continue to develop the relationship under the new term.

"Our scale and depth of expertise across the UK&I means that we can bring continuous improvements to Co-op's supply chain. We're proud of what we've built together, and of the positive impact our colleagues continue to make in the communities around the network," Hyde said.

Co-op said the extension supports a long-running logistics relationship shaped by the demands of its convenience estate and national store network.

"Extending and deepening our partnership with GXO is an exciting development, ensuring we can continue our shared history of collaboration and innovation into the future. As a convenience retailer, we are focused on running a world-class, resilient supply and logistics operation to provide our customers with the products they want to buy from our 2,300 stores across the UK. We have successfully worked with GXO over many years to this end, and we are looking forward to the next chapter in our partnership," said Stuart Rendall, Head of Logistics Operations, Co-op.