DHL Supply Chain has expanded its long-running partnership with Polish discount retailer Pepco, taking over the operation of two additional European distribution centres since the start of 2026. The new sites, located in Gyál (Hungary) and Bucharest (Romania), bring to five the total number of Pepco fulfilment hubs managed by the German logistics group across the continent. They sit alongside two existing facilities in Poland and one in Spain, consolidating DHL’s role as the discounter’s lead third-party logistics provider in Europe.
Strategic Rationale
According to DHL Supply Chain, the broader contract is designed to safeguard product availability across Pepco’s fast-growing store network, shorten delivery lead times and improve overall network performance. Founded in 2015, Pepco now operates more than 4,000 stores across roughly 20 countries and has been one of Europe’s fastest-expanding discount retailers over the past decade. The shift toward a single, multi-country logistics partner reflects an industry-wide push by retailers to standardise warehouse operations, reduce variability between markets and unlock procurement and IT synergies.
Operational Footprint
The Bucharest site is the newest addition to the partnership and acts as a regional gateway: from there, DHL handles inbound storage, order picking and shipping for Pepco stores in Romania, Bulgaria and Greece. With the two new facilities included, DHL Supply Chain now runs around 290,000 sqm of warehouse space and employs roughly 1,500 staff dedicated to the Pepco account in Europe. The expansion gives Pepco a more standardised operating model across markets while preserving service continuity for store replenishment.
Market Context
Javier Rubio, Pepco’s Director of Procurement and Supply Chain, said the broader scope strengthens the retailer’s ability to scale, lift productivity and protect service quality at the point of sale, while ensuring a smooth transition for the teams involved. The deal underscores how European discount retailers are leaning more heavily on global 3PL partners to support cross-border expansion, particularly in Central and Eastern Europe, where store rollouts continue to outpace the rest of the continent.
