Lily Sawyer is an in-house writer for Supply Chain Outlook Magazine, where she is responsible for interviewing corporate executives and crafting original features for the magazine,...
- Senior Editor
Share
Pepco and DHL Supply Chain are expanding their European logistics partnership to enhance distribution resilience, improve operational efficiency, and support reliable product availability across Pepco’s growing retail network.
Pepco and DHL Supply Chain are expanding their European partnership to strengthen distribution reliability, improve operational resilience, and support the retailer’s rapidly growing store network across multiple markets.
Pepco has expanded its long-standing partnership with DHL Supply Chain in a strategic move designed to strengthen distribution reliability and improve retail store supply across Europe.
The enhanced collaboration will see DHL Supply Chain manage five of Pepco’s key distribution hubs across Central and Eastern Europe, reinforcing the retailer’s ability to scale efficiently while maintaining consistent product availability across its growing store network.
Building on existing operations in Poland and Spain, the expanded agreement represents a major milestone in the companies’ relationship and reflects the increasing importance of resilient, interconnected supply chains in modern retail.
STRENGTHENING A EUROPEAN NETWORK
Under the broadened partnership, DHL Supply Chain now oversees operational management at strategic Pepco distribution centres in Sosnowiec and Rawa Mazowiecka in Poland, Gyal in Hungary, and Bucharest in Romania, alongside existing operations in Spain.
The latest expansion includes DHL Supply Chain’s takeover of Pepco’s Bucharest distribution centre, marking the logistics provider’s official entry into Romania’s contract logistics market.
The move is significant for DHL Group, as Romania continues to emerge as a strategic growth market with increasing demand for integrated, end-to-end supply chain services.
While DHL has maintained a long-standing presence in Romania through its Express and Global Forwarding divisions, the Bucharest operation enables the company to offer a broader suite of logistics solutions within the country.
For Pepco, the strengthened partnership supports a more standardised operating model across Europe, enabling greater flexibility, improved warehouse performance, and enhanced scalability as its retail footprint continues to expand.
Pictured Left to Right:Raul Ciungu, Managing Director Romania, Pepco; Javier Rubio, Global Sourcing and Supply Chain Director, Pepco; Andries Retief, Global Chief Development Officer, DHL Supply Chain; Stephan Borchert, CEO of Pepco Group; Rainer Haag, CEO Europe DHL Supply Chain; Petr Kana, Managing Director, Czech Republic and Romania, DHL Supply Chain
DELIVERING RESILIENCE AT SCALE
At the Bucharest facility, DHL Supply Chain is responsible for end-to-end logistics services, including warehousing, inbound and outbound picking, loading, and value-added services supporting store distribution across Romania, Bulgaria, and Greece.
Three of the five managed sites are highly automated, helping improve throughput, increase picking accuracy, and create more predictable processing times as operational volumes grow.
The multi-site operational structure also strengthens business continuity by ensuring service levels can be maintained during disruptions, enabling reliable product availability for Pepco stores across Europe.
Together, the five distribution centres now encompass 290,000 square metres of warehouse operations and support more than 4,020 Pepco stores across the continent.
As part of the partnership expansion, more than 1,500 employees from newly integrated sites will join DHL Supply Chain, ensuring operational continuity and workforce stability throughout the transition.
SUPPORTING LONG-TERM GROWTH
Pepco and DHL Supply Chain first partnered in 2019 at the Sosnowiec facility in Poland, then extended the collaboration to Spain in 2024.
The partnership then expanded rapidly through successful operational transitions at Rawa Mazowiecka in September 2025, Gyal in January 2026, and Bucharest in April 2026.
According to both organisations, each transition was completed while maintaining full operational continuity, highlighting the maturity and stability of the relationship.
For Pepco, the collaboration is part of a broader strategy to accelerate growth while maintaining operational efficiency and service reliability across European markets.
Javier Rubio, Global Sourcing and Supply Chain Director at Pepco, says the expanded agreement strengthens the retailer’s ability to scale operations, improve productivity, and protect store service levels through a more consistent operating model.
Stephan Borchert, CEO of Pepco Group, adds that the integrated partnership will support the company’s long-term strategic growth ambitions.
“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”
For DHL Supply Chain, the expanded agreement reinforces its position as a leading retail logistics provider across Europe and deepens its operational footprint within Central and Eastern European markets.
Rainer Haag, CEO Europe at DHL Supply Chain, describes Pepco’s supply chain as a resilient, interconnected European network capable of responding quickly to changing consumer demand and operational disruptions.
He also highlights Romania’s growing importance as a central node within global supply chains, positioning the country as a strategic access point for businesses seeking multi-market logistics solutions.
Meanwhile, Filip Budík, CEO Central and Eastern Europe at DHL Supply Chain, says the expansion reflects the trust established between both organisations
“We are honoured to deepen our relationship with Pepco and to take on additional responsibilities within their supply chain across Central Europe. 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.”
Together, Pepco and DHL Supply Chain are building a stronger logistics foundation designed to support future retail growth, improve operational resilience, and ensure consistent service delivery across Europe’s rapidly evolving retail landscape.
This article was produced by the editorial team at Supply Chain Outlook and published as part of the Outlook Publishing global network of B2B industry magazines.
Outlook Publishing delivers industry insights, company stories, and sector coverage across supply chains, manufacturing, mining, construction, healthcare, food production, and sustainability.
Supply Chain Outlook provides ongoing coverage of organisations and developments shaping the global logistics and supply chain sector.
Lily Sawyer is an in-house writer for Supply Chain Outlook Magazine, where she is responsible for interviewing corporate executives and crafting original features for the magazine, corporate brochures, and the digital platform.
