Pepco opens new distribution hub near Gdansk to combat supply chain disruptions

Pepco, the European discount retailer operating over 4,000 stores across 19 countries, has opened a new distribution center in Barniewice near the port of Gdansk, Poland. The facility is designed to support rapid store expansion and bolster supply chain resilience amid significant global logistics challenges.

The company is facing severe disruptions, with logistics director Martin White stating that only approximately 35% of shipments are currently arriving on time. These delays are attributed to a combination of factors, including forced changes in shipping routes due to conflicts in the Middle East, disruptions in the Red Sea and the Strait of Hormuz, and typhoons in China that stranded freight in Shanghai.

To mitigate rising freight and fuel costs, CEO Stephan Borchert noted that Pepco is utilizing long-term container agreements extending beyond next summer. The new Gdansk site will also function as a deconsolidation center, allowing the company to unpack containers and redirect goods more efficiently after arrival rather than making decisions while stock is still in Asia.