Sainsbury’s to close two Argos depots in move that will affect 1,400 jobs

28 February 2023 , 14:44

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The changes come as part of Sainsbury's "Save to Invest" strategy (Image: PA)

Sainsbury’s is to close two Argos depots over the next three years in a move that will impact 1,400 jobs.

The move is part of a wider shake-up of its general merchandise operations across the group.

The proposal includes merging five existing Sainsbury’s and Argos depots into three before 2026.

Sainsbury's said it was proposing to close its Basildon distribution centre in Essex and depot at Heywood, Greater Manchester.

It said the move would also threaten jobs in third party support operations.

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The big four supermarket chain said all staff affected by the plan would have the opportunity to apply for jobs elsewhere within the company.

Sainsbury's will also close its three remaining Habitat showrooms later this year as it plans to launch a new digital showroom instead.

Habitat employees will be affected by the closures and the retailer is currently in consultations with its staff.

The retailer also proposes to make a major £90million investment in its Daventry site with an aim to "modernise" the site.

Sainsbury's said the plans aim to create a "simpler and modern" network which will "improve availability, reduce stock and enable faster customer deliveries".

At this stage, it is not expected that the jobs at Daventry will be affected.

Simon Roberts, Sainsbury’s chief executive, said: “As part of our plan to create a simpler business, we previously set out our intention to integrate our Argos and Sainsbury’s logistics networks.

“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.

An office in Milton Keynes is also planned to be closed later this year due to greater demand for flexible working.

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This closure is part of the supermarket's "save to invest strategy" which was launched in 2020.

Sainsbury's said the money it will save on closing the office site will be reinvested back in the company.

It has also been confirmed that no roles are "at risk" with this particular move.

This is because affected employees will work remotely as well as be moved to an alternative Sainbury's office.

The Unite Union has responded to the announcement by saying there was "no economic justification" for job losses, claiming at least 750 people would be left out of work by the decision.

Ruby Flanagan