Tesco to close two distribution centres in UK


UK-based grocery retailer Tesco is planning to close two of its distribution centres, as part of its programme to simplify its business.

Tesco intends to close the Welham Green distribution centre and move its grocery operations to the Reading distribution centre.

The retailer also plans to close the Chesterfield distribution centre, resulting in consolidation of its general merchandising operations at the Middlesbrough-based facility.

"These changes will help to simplify our distribution operations so we can continue to serve our customers better."

Tesco UK and ROI chief executive officer Matt Davies said: “As the needs of our customers change, it’s vital we transform our business for the future.

“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.”

The clothing operations will be withdrawn from the DHL-operated Daventry hanging garments shared distribution centre and moved to Tesco Daventry distribution centre.

All warehouse operations currently under DHL and Wincanton will also be withdrawn and integrated in-house.

The retailer also intends to simplify the management structure across all distribution centres.

It is reported that new jobs will be created across the retailer's distribution centres such as Reading and Middlesbrough, the tranformation and restructure of Tesco will lead to the displacement of a number of jobs.


Image: Tesco House, the head office of Tesco. Photo: courtesy of Gordon Joly via Wikipedia.