GXO extends Co-op transport contract for five years

GXO has extended its transport contract with Co-op by five years, continuing a supply chain relationship that now spans more than 20 years.

The agreement covers transport operations at Avonmouth, Andover and Lea Green, where GXO supports deliveries to more than 1,000 Co-op stores in the UK. Co-op operates 2,300 food stores nationwide, making logistics central to its convenience retail model.

For GXO, the renewal secures a longstanding customer in UK food retail. For Co-op, it maintains an established transport arrangement across multiple sites as the retailer continues to supply a large store estate and a broader wholesale network.

The companies did not disclose financial terms. Under the latest agreement, GXO will continue to manage deliveries from the three operations.

Store network

The extension highlights the importance of outsourced logistics in food retail, where operators are under pressure to keep stores supplied while managing cost, reliability and network resilience. Convenience chains in particular depend on frequent replenishment because their stores are smaller and hold less stock than larger supermarket formats.

Co-op's food business sits alongside funeralcare, insurance and legal services, but its retail footprint remains one of the largest convenience networks in the country. The group also supplies around 8,000 additional outlets through its wholesale business, increasing the scale of its wider distribution demands.

GXO said it would continue working with Co-op on efficiency, service and resilience across the transport network. The logistics group also pointed to its experience in fast-moving consumer goods operations, where timing, routing and store availability are closely linked to sales and waste levels.

Chris Hyde commented on the renewal in a statement.

"This renewal reflects the brilliant service and operational leadership that our teams deliver every day for one of our longest-standing partners," said Chris Hyde, Managing Director, Food and Beverage, GXO UK&I.

"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.

Community focus

Beyond the transport contract, both companies highlighted social projects linked to the partnership. GXO said colleagues across the Co-op transport network 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 staff-led initiatives. Work with three Co-op academies has included mentoring, employability workshops and site engagement.

Another part of that activity has involved the apprenticeship levy, which the companies said has been used to support skills, training and community initiatives connected to Co-op opportunities. The partnership is being framed not only around transport operations, but also around workforce development and local engagement.

That broader emphasis reflects a pattern across large retail supply chains, where logistics providers increasingly present labour retention, training and community links as part of contract relationships. In sectors with high staffing needs and operational intensity, those factors can influence continuity as much as fleet management or warehouse processes.

Stuart Rendall set out Co-op's view of the renewed agreement.

"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.

GXO employs more than 150,000 people across more than 1,000 facilities globally, according to company figures, while Co-op says it has 53,000 colleagues and annual revenue of more than GBP £11 billion. The renewal keeps one of GXO's long-running UK retail logistics contracts in place across a network serving more than 1,000 stores.