How GXO is strengthening sports and apparel logistics in Europe with pioneering solutions

GXO Logistics, Inc (NYSE: GXO) works with the largest companies in the sports industry. So when major sporting events occur, the logistics provider observes an increase in the volume of goods to be handled, but also an increase in the number of returns. And so the company developed the 3Rs principle. With this, the company aims to reduce the impact of these return activities on the environment.

In 2024 the sports summer par excellence will take place, for Belgium and by extension all of Europe. From the European soccer championship in June, to the Olympic and Paralympic Games in Paris. These are just a few examples of major events that pose a challenge from an organizational point of view, but also place a heavier burden on the logistics sector.

During the Paris Olympics, the logistics sector experienced a daily influx of 3,200 tons of goods, which created significantly more pressure on available operational capacities.

Consequently, the global sports industry is booming. With e-commerce market for sporting goods reaching sales of 42.3 billion euros in 2023 (RetailX, 2024), the demand for advanced logistics solutions is greater than ever.

GXO's presence in the sports sector.

Leading this transformation is GXO. A provider of customized logistics and technology-driven solutions in more than 50 locations worldwide for 30 brands in the sports industry.

GXO works with the largest companies in the sports industry, and so "reversed logistics" is also part of the offering. Recent research shows that about 30% of e-commerce purchases are returned (Shopify, 2024). Converted to the 3,200 tons of goods for the Olympics, that means about 960 tons will be returned. According to BBC Earth, these returns create about 2.3 billion kilograms of waste worldwide each year (BBC Earth). GXO therefore operates according to the 3Rs principle: Reduce, Reuse, Recycle. By doing so, the company focuses on optimizing operational activities and aims to reduce the impact of these return activities on the environment.

Reversed logistic to support a circular economy

Sports consumers worldwide are an important target group for sustainable purchases, and so it is up to the logistics sector to set new standards. One notable initiative by GXO is enabling circular economy of sports shoes and apparel. For example, GXO provides reverse logistics for one of the world's largest manufacturers of athletic shoes. Out of 32 million returned items, the company manages to reintroduce 95% to the market through second-hand sales channels after inspection, the remaining 5% is recycled into insulation material, for example. This is according to the annual ESG report recently issued by GXO.