Sainsbury’s will close its Milton Keynes (MK) offices as well as Argos distribution centres in Basildon and Manchester as it moves to rationalise its operations. The MK office closure will not have any impact on jobs and comes as a result of significant numbers of its staff opting to work remotely. The business says that it is looking at taking smaller office space in the area to accommodate the small numbers of staff who prefer to work from an office facility, but that currently only 11 per cent of its MK desk space is being regularly used.
However, the Basildon and Manchester DC closures will have the most impact, affecting around 1400 jobs on its own payroll and that of its outsourced supplier Wincanton. The process, which trade union Unite is railing against, will leave the retailer with three DCs to support its chains of Argos and Sainsbury’s stores.
It is also proposing to close three Habitat showrooms later this year as it transitions to a purely digital offering.
CEO Simon Roberts commented: “As with any major changes to our business, we have not taken the difficult decision to start this consultation process 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 to transform this network as we make our business simpler, more efficient and more effective for our customers. This also allows us to reduce costs, so we can invest where it will make the most impact for our customers.”
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