Sainsbury’s announces plan to close large Argos depot at Heywood with 350 jobs threatened

As many as 350 jobs are at risk after a plan to close a large Argos depot in Greater Manchester was announced.

Sainsbury’s says its distribution centre at Heywood is one of two such Argos facilities in the country which it is looking to shut, with the other being in the South East.

The company says it is expanding its local fulfillment centres to create what it calls a more modern logistics network and has begun consulting with the 1,400 staff across the country affected.

However, a leading trade union has expressed fury at the announcement, saying there is “no economic justification” for the closure and demanding Sainsbury’s invests in keeping jobs.

What has Sainsbury’s said about the Argos centre in Heywood?

Sainsbury’s has said it is looking to close the depot in Rochdale which serves Argos stores across the north of England by 2026. A distribution centre in Basildon serving the South East region has also been earmarked for closure under the plans.

Sainsbury’s says it is ploughing £90m into its logistics network and wants to expand its network of local fulfillment centres while also investing money in automation technology at its Daventry site.

The firm has admitted around 1,400 people will be affected, made up of those who work directly for the company and third-party employees. The Heywood site has around 350 people working there and staff in roles such as HGV driving, who are on an outsourcd contract with Wincanton, will be affected as well.

Sainsbury’s says consultation has begun and those impacted by the plan will be offered the chance to look at other roles in the company.

Simon Roberts, Sainsbury’s chief executive, said: “As with any major change to our business, we have not taken the difficult decision to start this consultation lightly. As part of our plan to create a simpler business, we previously set out 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 reduce costs, so we can invest where it will make the most impact for our customers.

“We understand that this will be an unsettling time for affected colleagues, and we will support them however we can throughout this process. We will be consulting closely with unions and colleagues as we look to streamline the number of sites in our general merchandise logistics network.”

What has the trade union representing Argos workers in Heywood said?

Trade union Unite has responded with dismay to Sainsbury’s proposals, saying the company is doing well enough that it should not be considering trimming the workforce and causing people to lose their jobs. It said it would do whatever it could to safeguard the future of staff in Heywood.

Unite national officer Matt Draper said: “Management at Argos/Sainsbury’s has yet to provide any form of business case for the loss of these jobs. 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 doesn’t drop its closure plans then Unite will pursue all avenues to preserve employment at these sites.”