Abercrombie & Fitch, Zalando Expand European Fulfillment Footprint
Abercrombie & Fitch Co. is expanding its partnership with GXO Logistics into the U.K. The contract logistics provider will manage e-commerce fulfillment and returns from a dedicated, newly refurbished 170,000-square-foot facility outside London.
GXO’s recent growth in Europe has also helped it win additional business with another client operating on the continent—Zalando. The German fashion e-tailer will occupy a 1.5-million-square-foot distribution center under construction in Montereau-sur-le-Jard, France, approximately 30 miles from Paris.
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A&F first started working with GXO in 2021, when the logistics firm opened an automated 715,000-square-foot distribution center in Goodyear, Ariz. that serves as the retailer’s West Coast distribution hub.
The GXO London facility employs more than 60 workers who provide picking, packing and sortation services using modular technology. But the company says it plans to more than quadruple that number in line with the Hollister parent’s growth plans.
By moving services to the U.K., the specialty apparel retailer will expand its e-commerce offering, increase service flexibility and reduce inventory concentration from a single location.
“Staying close to our customers is top priority at A&F Co. By expanding our partnership, GXO will support our efforts to improve e-commerce experiences for customers globally,” said Larry Grischow, executive vice president, supply chain of A&F Co. in a statement. “We are confident that the additional fulfillment capacity will improve speed and the overall omnichannel shopping experience for our U.K. customers.”
GXO also will leverage its reverse logistics solutions to process returns within 48 hours of receipt, which can make products available for sale again quickly, while reducing waste and costs. The warehousing provider, which split off from XPO Logistics in late 2021, will also progressively implement goods-to-person automation and adaptive technology into the operations to improve efficiency and quality.
In May, GXO Logistics chief investment officer Mark Manduca told Sourcing Journal that 31 percent of the company’s warehouses are currently automated. The company is ramping up automated systems deployments 64 percent over the year prior, with goods-to-person systems increasing 38 percent.
The Arizona facility already features hundreds of goods-to-person robots that process millions of items a year to help employees increase productivity and improve safety. GXO also uses intelligent analytics, including AI and machine learning, to enable faster, more efficient product distribution to customers.
Gavin Williams, GXO’s managing director, U.K. and Ireland, said the dedicated facility is underpinned by the logistics provider’s warehouse management system (WMS).
“Our facility puts stock closer to Abercrombie & Fitch’s U.K. consumers, improving delivery and returns processing speeds and reducing environmental impact,” Williams said. “This is a long-term, global partnership, and we’re looking forward to supporting their growth plans in the U.K.”
GXO’s $1.3 billion acquisition of U.K.-based Clipper Logistics last year helped facilitate the expansion of the Greenwich, Conn.-based company further into European markets, with the firm also acquiring 10 million square feet of industrial real estate and along with fashion clients including Asos, John Lewis and River Island.
The logistics giant’s investments got the attention of Zalando, which doesn’t operate stores and wants to improve distribution in France, GXO’s third-largest market by revenue, behind the U.K. and U.S.
“Our French customers will benefit from reduced delivery times and we are happy to have GXO as our trusted partner on our side to achieve that,” said Laura Toledano, general manager, France at Zalando, said. “We are looking forward to GXO setting up a strong local team so that together, we can enhance the customer experience in France.”
GXO already manages Zalando’s returns operations in France and Italy, according to Rui Marques, managing director of France, GXO.
“Zalando is our largest project in France to date—in terms of scale, automation, technology and job creation—and we are excited to support Zalando’s growth,” Marques said.
The multi-tiered distribution center will eventually create about 2,000 jobs, GXO said.
Like the A&F facility, the site will be heavily automated to help Zalando’s consumers access millions of items across their assortment. GXO and Zalando have designed the facility with safety and employee wellbeing as top priorities, including air conditioning, break rooms, outdoor terraces, as well as a walkway and a shuttle system to facilitate movement within the warehouse.
Last year, over half of GXO’s annual revenue came from customers that work with the logistics provider in more than one country.
