Tesco is planning to close two of its distribution centres, including one for fashion, leading to a net loss of 500 jobs.
The supermarket’s grocery centre in Welham Green in Hertfordshire and its clothing and general merchandise centre in Chesterfield are closing.
This will result in the loss of 1,000 roles, but further changes to its distribution network will create a 500 new jobs, including some at Reading and Middlesbrough distribution centres and the creation of colleague support roles in the majority of centres.
The retailer’s clothing and general merchandise will move from Chesterfield into one distribution centre in Middlesbrough.
Tesco is also bringing all warehouse operations that are currently carried out by DHL and Wincanton in house.
As a result, it is withdrawing from Daventry hanging garments shared distribution centre, which is operated by DHL, and is moving its clothing operations to its own Daventry distribution centre.
Matt Davies, Tesco UK and Ireland CEO, said: “As the needs of our customers change, it’s vital we transform our business for the future. As part of this we are proposing to close two of our distribution centres in the UK. These changes will help to simplify our distribution operations so we can continue to serve our customers better.”