Sainsbury’s is planning to close two of its Argos depots over the next three years, as it integrates its general merchandise logistics network in a move that will affect 1,400 jobs across the business.
The proposed move, which will leave three depots remaining, is part of “further integration and modernisation” across the Sainsbury’s and Argos general merchandise logistics network.
The consultation process began today, with colleagues impacted by the proposed closures given the opportunity to explore alternative roles within Sainsbury’s and Argos. The Basildon distribution centre and Heywood depot are both expected to close by 2026.
A £90 million investment will also help the supermarket giant automate its Daventry depot, which will enable it to reduce stock, improve deliveries and simplify the process for suppliers.
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These changes, coupled with the expansion of Sainsbury’s local fulfilment centre network, are expected to create “a simpler, more modern network”, significantly improving availability, reducing stock and enabling faster deliveries. Two new local fulfilment centres will be opening in the coming weeks.
“As with any major change to our business, we have not taken the difficult decision to start this consultation lightly,” said Sainsbury’s CEO Simon Roberts.
“Over the last few years, we’ve been working hard to transform this network as we make our business simpler, more efficient and more effective for customers. This also allows us to reduce costs, so we can invest where it will make the most impact for our customers.
“We understand that this will be an unsettling time for affected colleagues, and we will support them however we can throughout this process. We will be consulting closely with unions and colleagues as we look to streamline the number of sites in our general merchandise logistics network.”
Sainsbury’s also revealed it will be closing its Milton Keynes office – where just 11% of available desk space was used by staff – as it continues to adopt more flexible ways of working. No jobs will be at risk and the money saved will be reinvested elsewhere, giving “greater impact” for customers.
All three remaining physical Habitat showrooms will also be closed, in favour of a digital showroom space, as part of a “post-pandemic property review”.
