DP World is expanding its UK grocery logistics operation by taking control of six GXO warehouse sites serving Asda, Sainsbury’s and Co-op.

The facilities, which comprise more than two million sq ft of warehouse space and employ over 2,000 people, will transfer to DP World in September.

Five of the sites are based in England and one is in Northern Ireland, providing ambient, chilled, frozen and bonded storage for some of the UK’s largest grocery retailers.

GXO will retain the transport operations connected to the applicable sites.

The transfer was required by the Competition and Markets Authority as a condition of its approval of GXO’s acquisition of Wincanton and has now been cleared by the regulator.

DP World strengthens grocery supply chain network

The six warehouses store around 46,000 individual products and supply out-of-town supermarkets, convenience shops and neighbourhood stores across the UK.

DP World said the deal would significantly expand its contract logistics footprint and strengthen its ability to provide end-to-end supply chain services across grocery, retail and consumer goods.

The logistics giant’s existing UK operations include its London Gateway and Southampton container ports, alongside freight forwarding, marine and logistics services.

DP World North Europe contract logistics vice president Angela Howard said: “We are delighted to welcome these six sites and the talented teams who operate them into DP World.

“They support some of the UK’s best-known grocery retailers and play a vital role in keeping products moving efficiently through complex supply chains every day.

“For our customers, it will be business as usual, backed by the strength, scale and investment of a global logistics business.”

Howard added that combining the sites with DP World’s ports, transport and warehousing network would help the business create a more integrated UK logistics platform.

She said: “This is an important step in our ambition to build a truly end-to-end logistics offering across the UK and Europe.

“It strengthens our presence in key retail and consumer markets, broadens our geographic reach and further enhances our ability to create value for customers.”

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