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11-Jan-2017

Tesco: major distribution changes

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As part of its transformation programme, Tesco has announced major changes to its distribution network in the UK.

Distribution centres to close

Tesco is proposing to close two distribution centres in Welham Green and Chesterfield. Grocery operations from Welham Green will move to its Reading facility, and the majority of general merchandise operations at Chesterfield will move to Middlesborough. The retailer also plans to simplify its management systems at its remaining 23 distribution centres in the UK.

In-house warehouse operations

Tesco is also planning to move all warehousing operations in-house. This includes withdrawing from the DHL-operated shared distribution centre for hanging garments in Daventry and moving operations to its own clothing warehouse in Daventry.

Transforming the business for the future

Matt Davies, Tesco UK&ROI CEO, commented: “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. Our priority throughout this process has been our colleagues and we will continue to do all we can to support them at this time.”

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