// Sainsbury’s is to close two Argos warehouses and has placed 1,400 roles into consultation
// It will also close its three remaining Habitat showrooms
Sainsbury’s is to close two Argos warehouses as it consolidates its general merchandise logistics network, putting 1,400 roles at risk.
The retailer has started a consultation with the people impacted by its plan to move from five to three warehouses. Its Argos depots in Basildon and Heywood are set to close in 2026.
Those impacted by the proposals will be given the option to explore alternative roles across Sainsbury’s and Argos.
Sainsbury’s said the move is part of the “modernisation” of its general merchandise logistics network across Sainsbury’s and Argos.
It plans to invest around £90m to automate its Daventry depot, which will enable it to reduce stock, be more responsive delivery to customers and stores, and give suppliers a simpler delivery process.
At this stage it is not expected that the number of roles at Daventry will be affected.
The retailer said that these changes, alongside its expansion of its local fulfilment centre network, would create “a simpler, more modern network”, and would significantly improve availability, and enable faster customer deliveries.
In 2020 Sainsbury’s set out its Save to Invest programme, which would see it simplifying its organisation whilst reducing its operating costs, and moving to an integrated supply chain and logistics network across Sainsbury’s and Argos was part of its plan.
Sainsbury’s chief executive Simon Roberts said: “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.”
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
Habitat to disappear from the high street
Sainsbury’s is also set to close Habitat’s three remaining physical stores in Brighton, Westfield London and Leeds later this year.
It is talking to the small number of Habitat showroom colleagues about their options, including redeployment elsewhere in the business.
Sainsbury’s reiterated that Habitat remained a key part of its strategy and will invest in the brand, which recently sponsored Channel 4’s Friday night TV.
In more property news, Sainsury’s also revealed that it plans to close its Milton Keynes office as it adapts its ways of working to become more flexible.
It will save on the operating costs of the site, where it said on average 11% of available desk space in the office was regularly used by staff, and reinvest the money “where it can have a greater impact for customers”.
No jobs are impacted by the office closure, with the option still available to work from other Sainsbury’s offices as well as from home.
Click here to sign up to Retail Gazette‘s free daily email newsletter
