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Tesco reveals proposed distribution centre network consolidation


Tesco has revealed proposed changes to its distribution centre network that will reduce the number of Tesco distribution centres from 25 to 23 in the UK and will mean bringing all warehouse operations currently carried out by 3PLs DHL and Wincanton in-house.
The company is to close its Welham Green distribution centre and move its grocery operations to the Reading distribution centre.

The retailer also proposes bringing the majority of its general merchandising into one distribution centre at Middlesbrough, with the Chesterfield distribution centre closing as a result.

Tesco will also withdraw from the Daventry hanging garments shared distribution centre, which is currently operated by DHL. Its clothing operations will move to the nearby Tesco Daventry distribution centre instead.

A simplification of the management structure across all the distribution centres will mean some redundancies, admitted the retailer. However, it claimed that other jobs will be created within other sites across the Tesco distribution network, including new roles at the Reading and Middlesbrough distribution centres.

Matt Davies, Tesco UK&ROI 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,” he said.

“Our priority throughout this process has been our colleagues and we will continue to do all we can to support them at this time,” said Davies.

Image credit: Tesco

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