Wilko extends deal with delivery partner as transformation plans gather pace

Struggling retail chain Wilko has extended its contract with delivery fulfilment partner GXO as part of an omnichannel transformation aimed at offering customers more convenient ways to shop.

The deal – which runs until June 2026 – comes amidst a fraught period for the Nottinghamshire-headquartered retailer.

As part of a planned CVA, Wilko is looking to slash rents on 240 of its 400 stores, and has reportedly attempted to broker a deal whereby it pays no rent on some of its outlets for the next three years.

Wilko says it isn’t planning to close any of its stores as part of the CVA – but it isn’t hard to foresee that some landlords will simply take back their premises.

Its agreement with GXO is focused on ensuring its stores and online offering work in harmony.

The retailer has also forged a strategic partnership with Clearpay which it says has shown “early signs of success”, with year-on-year digital sales up 50% on average in the last eight weeks.

Ben Exall, digital and marketing director at Wilko, said: “The GXO work has been key to the acceleration of wilko’s omnichannel transformation and that’s why we’re delighted to extend our contract with the business until 2026.

“Our stores remain the cornerstone of our business and we’ve always been a one-stop-shop for all our customers everyday household and garden jobs, but now we’re able to offer more great value products, readily available to shop, wherever the consumer wants, through fulfilment experience optimisation, ease of find & research, checkout, payment and aftercare initiatives.

“This contract extension accompanies a raft of recent announcements. Investing in improving our customer experience both digitally and in-store is at the heart of our turnaround strategy.”