UK retailer Tesco has announced proposed changes to its distribution network, shuttering two distribution centres in order to 'run its business more simply'. It is understood that the measures will result in the loss of approximately 1,000 jobs, however some 500 new jobs will be created as part of the planned restructuring.
The tweaks are part of a broader programme of transformation that has been developing over the last two years, the company said.
The revamp will close the Welham Green and Chesterfield distribution centres, cutting the number of centres from 25 to 23 in the UK.
All general merchandising will be brought to Middlesbrough, and Welham Green's grocery operations will be moved to the Reading distribution centre.
The retailer will also be exiting the Daventry hanging garments shared distribution centre, currently run by DHL. It will move its clothing operations to the Tesco Daventry centre.
Tesco also announced that it will be moving all of its warehouse operations inhouse, dropping DHL and Wincanton.
The final step will be simplify management across all distribution centres.
While the retailer confirmed that the changes would create some redundancies, it said that new roles would open up in Reading and Middlesbrough.
Matt Davies, Tesco UK&ROI CEO, explained the update: "As the needs of our customers change, it’s vital we transform our business for the future".
"Our priority throughout this process has been our colleagues and we will continue to do all we can to support them at this time."
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. To subscribe to ESM: The European Supermarket Magazine, click here.
