GXO Logistics has revealed that the deal it secured with Sainsbury’s in April to run warehouses for fresh and frozen goods is the largest annual revenue contract awarded in the company’s history.
Malcolm Wilson, chief executive of GXO, said: “Our new project with Sainsbury’s, a leading grocery retailer in the UK, represents nearly $1 billion in lifetime value.” Wilson made the comments as GXO reported revenue of $2.32bn – up 12% from $2.08bn for the first quarter.
“We saw increased outsourcing and automation in the quarter,” said Wilson. “Operational tech was up a record 64% year over year, and we are accelerating our deployment of artificial intelligence, which boosts productivity significantly.
“We also continued to make strong progress on our key initiatives: we are seeing the benefits of our central efficiencies program sooner than expected, and the integration of Clipper is largely complete, allowing GXO to accelerate the expansion of GXO Direct, our industry-leading shared-user solution, to the UK.”
