Wilko has extended its contract with home delivery provider GXO to June 2026.

The extension of the contract is the latest step in Wilko’s omnichannel transformation, which aims to offer customers more convenient ways to shop across all its channels including its 400 stores.

The deal means the variety retailer will continue to benefit from GXO’s warehousing facilities, enabling the business to best manage its customer experience and provide easier access to products.

Wilko is currently focusing on perfecting its omnichannel and its click-and-collect service, launched in February, now accounts for 42% of all online orders and acts as a signpost to stores for customers.

The collection time has recently improved and items can be ready for pick-up in two hours.

Wilko’s other digital enhancements and strategic partnerships include adding Clearpay to its online checkout and the retailer said more initiatives focused on “customer convenience and flexibility” are launching “almost weekly”.

The recent investments in omnichannel transformation have meant year-on-year digital sales have increased 50% on average across the last eight weeks.

Wilko digital and marketing director Ben Exall 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 and 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.”