Abercrombie & Fitch partners with GXO to automate e-commerce logistics globally
Following successful operations in the U.S., GXO to handle 100% of Abercrombie & Fitch’s ecommerce operations, including returns, in the U.K.
Abercrombie & Fitch Co. is a leading, global specialty retailer of apparel and accessories for men, women and kids through five renowned brands. The iconic Abercrombie & Fitch brand was born in 1892 and aims to make every day feel as exceptional as the start of a long weekend.
GXO Logistics, the world's largest pure-play contract logistics provider, has announced an expansion of its partnership with Abercrombie & Fitch Co. (A&F Co.), a leading global specialty apparel and accessories retailer. GXO will now manage A&F Co.'s ecommerce fulfillment and returns in the U.K. from a dedicated facility located outside London. This move follows the successful collaboration between GXO and A&F Co. in the U.S., where GXO operates a technologically advanced distribution center with automation, robotics, analytics, and AI.
The newly refurbished 170,000-square-foot warehouse in the U.K. will allow GXO to handle all aspects of A&F Co.'s ecommerce operations, including the processing of returns. By establishing a dedicated warehouse closer to A&F Co.'s U.K. customers, the partnership aims to improve delivery and returns processing speeds while reducing the environmental impact. This expansion represents a long-term, global partnership between the two companies, and GXO is eager to support A&F Co.'s growth plans in the U.K.
By shifting its services to the U.K., A&F Co., particularly its adult apparel brand, Abercrombie & Fitch, will enhance its ecommerce offering, gain service flexibility, and decrease inventory concentration by relying less on a single location. GXO currently employs more than 60 team members at the facility, providing services such as picking, packing, and sortation using modular technology. However, as per A&F Co.'s growth strategy, GXO plans to significantly increase its workforce at the site. Moreover, GXO will utilize its advanced reverse logistics solutions to process returns within 48 hours, maximizing the value of returned products through resale, reducing waste, and delivering cost savings. The company also plans to introduce goods-to-person automation and adaptive technology to enhance operational efficiency and quality.
Larry Grischow, EVP Supply Chain of A&F Co., emphasized the importance of staying close to customers, expressing confidence that GXO's expanded partnership will enhance the ecommerce experience for A&F Co.'s customers globally. The additional fulfillment capacity provided by GXO is expected to improve speed and the overall omnichannel shopping experience for U.K. customers.
In late 2021, GXO opened a highly automated 715,000-square-foot distribution center in Goodyear, Arizona, serving as A&F Co.'s hub for its West Coast operations. This facility utilizes goods-to-person robots to process millions of items annually, increasing productivity and improving safety for the team members. GXO also leverages intelligent analytics, including AI and machine learning, to ensure fast and efficient product distribution to customers.
In 2022, over half of GXO's annual revenue came from customers like A&F Co. who collaborate with GXO in multiple countries. This achievement highlights GXO's global scale, trusted expertise, and technological advantages, making it a preferred partner for leading brands worldwide.
