Marks & Spencer is to close its distribution centre in Neasden, north London, placing 380 people into consultation.
The site is operated by third-party logistics specialist XPO Logistics with transport operations provided by DHL. Operations at the centre will cease and work transferred to other M&S sites.
Meanwhile the retailer is to open a new 495,000 sq ft clothing and home distribution centre in Welham Green, Hertfordshire.
The former Tesco site will open in early 2019 and serve 150 stores in the South East. It will be operated by a third-party logistics supplier and will employ more than 500 people.
M&S said it is the latest step in an overall strategy to adopt a “single-tier” clothing and home distribution network, which currently comprises 19 distribution centres across the UK.
Gordon Mowat, director of clothing and home supply chain and logistics at M&S, said: “M&S is changing and we are transforming our stores and supply chain to better serve our customers.
“The new site in Welham will deliver better service and availability for our customers and enable us to become a faster, more agile, lower cost retailer.”
He added: “The decision to move operations from Neasden to other sites within our network is not one we have taken lightly, however it’s an important part of our transformation.”
A spokeswoman for DHL said: “Affected staff have been informed of the situation and will shortly enter into consultation with the company and union representatives to discuss its implications.
“Both DHL and M&S stress that the proposed changes are based on commercial reasons and in no way reflect on the performance of the Neasden operation.”
Drapers has contacted XPO Logistics for comment.
Clothing and home sales at M&S fell 2.8% to £1.19bn on a like for like basis for the 13 weeks to 30 December 2017.