Pepco recently disclosed the opening of a new distribution center in Barniewice, near Gdańsk, covering over 50,000 square meters. This strategic location, close to vital road and port infrastructure, aims to strengthen the company’s logistics network and minimize supply chain disruptions. The move is expected to create around 250 new jobs in the region.
CEO Stephan Borchert explained to Reuters that long-term contracts are essential for mitigating rising transportation costs. He noted, “With fairly long-term agreements, we can ease peak costs now,” adding that the company has secured container contracts that extend into next summer.
The effects of increased freight and fuel costs due to the Middle East conflict and significant global shipping route blockages are impacting retailers worldwide, including Pepco. Martin White, the company’s logistics director, stated, “I have been dealing with supply chains for 45 years, and it has never been like this before,” highlighting the challenging mix of disruptions, such as forced transport route changes and typhoons in China that stalled Pepco shipments in Shanghai last August. As a result, only about 35% of Pepco’s shipments are arriving on time.
Part of the facility in Gdańsk will serve as a deconsolidation center, allowing Pepco to unload containers and determine the distribution of goods upon arrival—decisions previously made while shipments were still in Asia. Borchert assured Reuters that Pepco would do everything possible to avoid passing higher costs onto customers but might consider this option if the entire industry is forced to act. Neither White nor Borchert provided specific figures regarding heightened transportation costs.
Pepco currently operates over 4,000 stores across Europe and generated revenues of €4.2 billion in 2025, with plans to open additional stores in existing markets.
