Sainsbury's will close two Argos stores, affecting 1,400 people.

 

Sainsbury's has announced plans to close two Argos stores over the next three years, affecting 1,400 jobs. The supermarket chain has stated that it intends to close its Argos warehouse in Basildon, Essex, as well as a depot in Heywood, Greater Manchester, by 2026. It stated that the closure of the sites that serve its Argos stores will affect 1,400 jobs, including both Sainsbury's employees and those who work for Wincanton as part of an outsourced contract. Sainsbury's also announced the closure of its Milton Keynes office in response to flexible working across the group, but stressed that no jobs would be lost as a result of the decision. However, it also announced that its three remaining Habitat showrooms will close later this year in order to make way for a replacement digital showroom, which will affect a small number of Habitat employees. "As with any major change to our business, we have not taken the difficult decision to begin this consultation lightly," Sainsbury's CEO Simon Roberts said. "As part of our plan to simplify the business, we previously stated 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 cut costs, allowing us to invest where it will have the greatest impact on our customers." "We understand that this will be an upsetting time for affected colleagues, and we will support people in any way we can throughout this process," he added. Sainsbury's said it would consolidate its five existing Sainsbury's and Argos depots into three, with its Daventry site also being further automated with a proposed £90 million investment, though no jobs at Daventry are expected to be affected at this time. It stated that employees affected by the decision will be able to "explore alternative roles" within the organization. According to the trade union Unite, there is no "economic justification" for the closures."Management at Argos/has Sainsbury's yet to provide any form of business case for the loss of these jobs," said Unite national officer Matt Draper. "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 does not abandon its closure plans, Unite will pursue all options to keep jobs at these locations."Sainsbury's, on the other hand, insisted that the changes, along with the ongoing expansion of its local warehouse network across the UK, would improve availability, reduce stock, and allow for faster customer deliveries. "The new three-site general merchandise network will improve productivity and the working environment, while increasing resilience and flexibility for the future," the company stated. The retailer announced the closure of its Milton location.The job cuts are part of a larger purge in the supermarket sector, with Tesco and Asda both recently announcing plans to cut positions as they slash costs in the face of stiff competition from discounters Aldi and Lidl, as well as rising inflation and consumer spending cuts. According to the Centre for Retail Research, UK retailers have cut nearly 15,000 jobs since the beginning of 2023 due to a slew of high-street closures and restructurings.

By Zuesblog