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Sainsbury’s announces it will close two Argos RDCs

UK supermarket chain Sainsbury’s has announced plans to close two of its Argos RDCs during the next three years. The retailer says the move is part of its aim to cut costs by integrating its Argos and Sainsbury's general merchandise logistics network. The plans could result in the loss of 1,400 jobs. According to the Unite Union, this figure doesn't include the potential loss of HGV driving jobs based on a contract with Wincanton.

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Two sites affected by the decision are the Basildon distribution centre and Heywood depot, both of which are expected to be shut down by 2026.

Commenting on the announcement, Simon Roberts, chief executive of Sainsbury’s, said:

“As with any major change to our business, we have not taken the difficult decision to start this consultation lightly. 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. We understand that this will be an unsettling time for affected colleagues, and we will support them however we can throughout this process.”

The move has been met with anger by the Unite Union, who have said they will “pursue all avenues to preserve employment” at the affected sites.

Offering his view on the announcement, Unite national officer Matt Draper said:

“Management at Argos/Sainsbury’s has yet to provide any form of business case for the loss of these jobs. Unite will be fighting to preserve every job and will put forward an alternative business case to the company to preserve employment at these two sites. This is an incredibly wealthy company which should be investing in its loyal workforce rather than dumping workers in pursuit of short-term profits. If Sainsbury’s doesn’t drop its closure plans then Unite will pursue all avenues to preserve employment at these sites.”

According to Unite, it isn’t just staff working at the sites that are at risk either. The union adds that in addition, the jobs of HGV drivers employed by Wincanton on an outsourced contract are at risk.


Photo © Copyright Jaggery and licensed for reuse under this Creative Commons Licence (image used for illustrative purposes only)