Supermarket giant Sainsbury’s has launched a major restructuring and consolidation of its logistics operations which will affect around 7,000 staff.
The strategy will see 3,000 staff, who currently work for Sainsbury’s, and 4,000 Argos staff transfer to one of Sainbury’s three logistics partners – DHL, Wincanton and GXO Logistics.
The retailer said the change will help improve service and availability for customers and that no jobs will be lost in the process.
The supermarket plans to invest £220m into its logistics network over the next three years to modernise operations, improve its fulfilment proposition as well as reduce the carbon footprint of its fleet which will help support the delivery of its carbon reduction targets by 2035.
As part of the restructure, the grocery chain will streamline its multiple different logistics contracts to just three across transport, food and general merchandise and clothing by 2024.
Sainsury’s said it will work closely with its colleagues, unions and partners to support those impacted by the changes.
Sainsbury’s chief executive Simon Roberts said: “We know these are big, bold changes and we have invested a huge amount of time planning this transformation to make sure it is successful.
“We believe our logistics and fulfilment operation will be one of our key competitive advantages in the future and today’s announcement will benefit our whole network through knowledge sharing and increased innovation.
“We’re confident that these changes will help us continue to invest where it will make the most impact for customers, now and in the future.”
Earlier this month, Sainsbury’s announced plans to close two Argos distribution sites in a move that will put 1,400 jobs at risk.
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