Marks & Spencer could be cutting around 380 jobs in the UK as it moves to adopt a single-tier distribution network for its clothing and home division with the opening of a new distribution centre.
The clothing, food and home retailer, which has been struggling to improve sales in its clothing division, will open the new centre in Welham Green, Hertfordshire early next year. It is the latest move by the retailer in its journey to overhaul its supply chain and store network.
As part of its five-year transformation plan, which has seen a recent acceleration in the closure of underperforming clothing departments, M&S aims to turn the existing 495,000 sq ft site into a mechanised clothing distribution centre, serving 150 stores in the South East.
The former Tesco site will be operated by a third-party logistics supplier, employing over 500 people.
As part of the move, M&S will cease operations at its Neasden, North London, distribution centre and transfer the work to other facilties in the M&S network. The Neasden site is operated by third-party logistics specialist XPO Logistics, with transport operations provided by DHL. Both XPO and DHL have now entered into a period of consultation with the 380 colleagues who work on site, M&S says.
“M&S is changing and we are transforming our stores and supply chain to better serve our customers,” says Gordon Mowat, director of clothing & home supply chain & logistics. “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. The location has fantastic transport links and we’re looking forward to building a great operation in Hertfordshire.”
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By GlobalDataThe Welham Green centre will be fitted out and tested during 2018, with operations expected to start operations early in 2019. The site will incorporate 27,000 sq ft of office space.
Marks & Spencer’s network currently comprises 19 distribution centres and warehouses, including large centres in Swindon, Castle Donington and Bradford.
As part of its new strategy, the retailer is undertaking a significant review of its cost base with the aim of generating a substantial reduction in legacy and structural costs. Last week it announced a new technology transformation initiative that will enable it to become a digital first business and deliver an improvement in customer experience – but will also lead to the consolidation of its technology supplier base.
M&S consolidates technology supplier base under new plans
