Central Co-op to close three distribution hubs impacting 400 jobs

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Central Co-op is gearing up to shutter three of its warehouses in Leicester as part of a reorganisation of its distribution operation.

The proposed closures, which include a garage on the outskirts of the city, will affect approximately 400 staff.

The development comes after the society said it had reviewed the age of its network and explored several options, including investing in a new purpose-built modern operation.

It is now expected to transfer service requirements to the LIDIA network, which already serves over 4,000 stores out of 13 distribution centres and is owned by the Manchester-based Co-op Group, from 2024.

Central Co-op said it anticipated the transition would take a year and had entered a joint consultation period with shopworkers union Usdaw.

The retailer added its priority would be in “supporting out colleagues, identifying ways to avoid redundancy and redeploying everyone who would like to move into other roles, either within Central Co-op or the LIDIA network.”

John Gorle, national officer at shopworkers union Usdaw, said its members were “deeply concerned about their future employment prospects.”

“We will now enter into a period of meaningful consultation where Usdaw reps and officials will interrogate the company’s business case for the transfer of distribution operations,” he said.

“We welcome that Central Co-op has given an early commitment to offering alternative roles to all staff affected.

“Our priorities are to avoid redundancies and secure the best support package possible. In the meantime, we are providing our members with the advice, support and representation they need during this period of uncertainty.”

Debbie Robinson, Central Co-op’s chief executive said: “The commitment and experience of our distribution teams is amongst the best in the logistics industry and they do an amazing job keeping our shops running.

“As we grow and invest in the Society to support communities, we need to be ready for the future and we have now outgrown our current distribution facilities. Our focus at this time is supporting our colleagues, we are committed to finding a role for each and every one potentially impacted by this proposed change, either within Central Co-op or the LIDIA network”.