Pepco expands DHL partnership to boost European distribution network

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 and Petr Kana, Managing Director Czech Republic and Romania DHL Supply Chain
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 and Petr Kana, Managing Director Czech Republic and Romania DHL Supply Chain

Pepco Group has expanded its strategic partnership with DHL Supply Chain to strengthen distribution reliability, delivery speed, and supply chain scalability across Europe.

DHL takes over five key distribution centers

Under the expanded agreement, DHL Supply Chain will manage five major Pepco distribution hubs across Central and Eastern Europe:

  • Sosnowiec and Rawa Mazowiecka (Poland)
  • Gyál (Hungary)
  • Bucharest (Romania)
  • Plus an additional site contributing to the network

The move significantly enhances Pepco’s ability to support its rapidly growing retail footprint, now serving over 4,000 stores across Europe.

Romania becomes a strategic logistics hub

A major milestone in the partnership is DHL’s entry into the Romanian contract logistics market, marked by the takeover of Pepco’s Bucharest distribution center.

The site will:

  • Serve Romania, Bulgaria, and Greece
  • Provide end-to-end logistics services, including warehousing and distribution
  • Strengthen DHL’s position in a fast-growing regional logistics market.

Focus on speed, resilience, and scalability

The expanded partnership is designed to:

  • Improve product availability in stores
  • Enable faster and more reliable deliveries
  • Enhance network resilience during disruptions

Three of the five sites are highly automated, helping boost:

  • Throughput
  • Picking accuracy
  • Operational efficiency.

Supporting Pepco’s rapid expansion

The collaboration now covers:

  • 290,000 sqm of warehouse space
  • Over 1,500 employees integrated into DHL operations
  • A multi-site network supporting continuous retail expansion

According to Javier Rubio:

“Expanding our partnership with DHL strengthens our ability to scale, improve productivity and protect service levels for stores.”

Long-term partnership continues to grow

Pepco and DHL have worked together since 2019, with the partnership steadily expanding:

  • Poland (initial operations)
  • Spain (2024)
  • Hungary and additional Poland sites (2025–2026)
  • Romania (2026)

Rainer Haag highlighted the importance of the collaboration:

“We are proud to enable Pepco to respond swiftly to demand and ensure reliable delivery even during disruptions.”

Outlook

The expanded partnership reflects a growing focus among retailers on building resilient, scalable, and integrated supply chains across multiple markets.

For Pepco Group, the deeper collaboration with DHL Supply Chain provides a standardized and flexible distribution platform, supporting continued store expansion and improving service reliability across Europe.