FRANKFURT, (Reuters) – GXO from the United States, which is the world’s biggest contract logistics provider, stated Wednesday that it hoped to increase its sales in Germany in five years by offering warehouse-related services in Europe’s largest economy.

GXO was created from XPO, a U.S. logistic company, and went public in 2013. It recently bought Clipper Logistics, Britain, for $1.3 billion, to capitalize on the growing demand for warehouse space all over the globe.

In an interview with Reuters, Neil Shelton, GXO Chief Strategist Officer stated that Clipper’s acquisition created the right conditions for a greater presence on the German market.

He said that the company had not been affected by rising energy prices after Russia invaded Ukraine. However, increasing labour costs have increased the demand for GXO’s automation GXO has in its warehouses.

Shelton stated that outsourced supply chain management and warehouse operations are not tied to the internet retail boom due to the pandemic.

“We are in contracts with brands manufacturers that want to get their goods to customers,” he stated. He explained that he personalises the products, builds them and then sends them to their destination.

Shelton said he sees potential in the French food market where GXO is already working with the giant supermarket chain. Carrefour (EPA:).

Shelton stated that “new technologies will give business an additional boost.” “Robots could speed up or improve food handling.”

GXO is a competitor to Deutsche Post’s postal service unit.