Pepco expands DHL partnership to scale European logistics ops

Pepco has expanded its partnership with DHL Supply Chain to strengthen distribution operations across Europe, with a focus on improving product availability, delivery timelines, and network performance for its growing retail footprint.

Under the extended agreement, DHL Supply Chain has taken over the operational management of five Pepco distribution centres: Sosnowiec and Rawa Mazowiecka in Poland, Gyal in Hungary, and Bucharest in Romania. The move builds on existing collaborations between the two companies in Poland and Spain and reflects a broader strategy to create a scalable and resilient supply chain network across multiple European markets.

The Bucharest facility marks DHL Supply Chain’s entry into Romania’s contract logistics market. While the group has operated in the country through its Express and Global Forwarding divisions, this expansion enables the provision of end-to-end supply chain services. Romania has been identified as a growth market for DHL Group, with rising demand for integrated logistics solutions.

At the Bucharest distribution centres, DHL Supply Chain will deliver warehousing, inbound and outbound picking, loading, and value-added services. The site will serve stores across Romania, Bulgaria, and Greece. The expanded partnership is designed to support Pepco’s store expansion plans while improving warehouse performance and enabling capacity scaling as volumes increase.

Three of the five distribution centres are equipped with automation systems to support higher throughput and improved picking accuracy. The multi-site operating model is also aimed at maintaining service levels during disruptions, ensuring continuity in supply to retail stores.

Pepco and DHL Supply Chain began working together in 2019 at the Sosnowiec facility. The partnership expanded to Spain in 2024, followed by transitions at Rawa Mazowiecka in September 2025, Gyal in January 2026, and Bucharest in April 2026. Both companies stated that operational continuity was maintained during each transition phase.

As part of the expansion, employees at the newly added locations will transition to DHL Supply Chain. The company now manages 290,000 square metres of warehouse space for Pepco and has added more than 1,500 employees under its operation, serving over 4,020 stores across Europe.

“The strength of Pepco's supply chain comes from its resilience and interconnected European network. We are proud to manage five of Pepco's distribution centres across the region, enabling them to respond swiftly to consumer demand and navigate unforeseen disruptions – ensuring reliable delivery to retail stores even when conditions change. With Bucharest joining our DHL Supply Chain network, we also strengthen our presence in Romania, further advancing our strategy to create natural access points for businesses seeking multi-market supply chain solutions. Romania is a central node within global supply chains, and together, we are building the logistics infrastructure to support that growth,” said Rainer Haag, CEO Europe, DHL Supply Chain.

“As Pepco continues to grow, the resilience and reliability of our distribution network become a strategic advantage,” said Javier Rubio, Global Sourcing and Supply Chain Director at Pepco. “Expanding our partnership with DHL Supply Chain supports a more standardised operating model across Europe and strengthens our ability to scale, improve productivity and protect service levels for stores. Importantly, this transition has been carefully designed to ensure continuity for our teams and a smooth handover of operations.”

“DHL has been a long-term partner for Pepco, and I am pleased that we were able to expand our existing partnership to a much more integrated setup. This partnership will enable Pepco Group to pursue its strategic targets of accelerated growth at the desired levels of effectiveness and efficiency. We are looking forward to a successful long-term partnership,” said Stephan Borchert, CEO of Pepco Group.

“We are honoured to deepen our relationship with Pepco and to take on additional responsibilities within their supply chain across Central Europe,” said Filip Budík, CEO Central and Eastern Europe at DHL Supply Chain. “This expansion is a strong vote of confidence in the quality of our services and the dedication of our teams. Long-term partnerships like this are built on trust, transparency, and shared goals – and we're proud to continue delivering on all three. I am confident that our expanded cooperation will not only enhance operational efficiency but also elevate the customer experience for Pepco shoppers across Europe.”

The companies said the expanded collaboration will support Pepco’s growth plans and strengthen business continuity across its European operations.