Sainsbury’s is set to cut 500 roles at its London head office and close one of its London fulfilment centres in a bid to reinvest in its new ‘food first’ agenda.

Retail Week has learned the grocer is set to remove at least 500 roles from its head office across commercial operations, human resources, supply chain and logistics, technology, general merchandise and clothing functions to free up funds to pursue its strategy. 

Sainsbury’s will also be closing another of its standalone distribution centres in Bromley-by-Bow, east London, putting 650 roles there into consultation. However, Retail Week understands the majority of those staff will be relocated to nearby London stores to help with online pick-and-pack services. 

Alongside the reduction in head office numbers, Sainsbury’s will look to rationalise office space. The grocer will close its Walsgrave, Coventry and London Origin offices completely and partially close its Beech office in Antsy. It will also reduce space at offices in Avebury, Milton Keynes and its Holborn head office by two floors and by one floor in Manchester. 

Staff based in those offices will be moved to existing offices which the retailer is adapting to create more collaborative space for when workers can return after the coronavirus pandemic. 

The retailer will look to reinvest the costs saved through these measures in areas such as its recently launched Aldi Price Match, adding new products and investing further in its online capabilities. 

Chief executive Simon Roberts said: “Our new plan puts food first and will create a simpler, nimbler and more efficient business. The money we save will enable us to invest in what customers really care about – lower prices, exciting new products and the most convenient ways for them to shop. 

“I know change is difficult but to do the best job we can for our customers, it is vital that we adapt. I understand this will be a very difficult time for affected colleagues and we will do everything we can to fully support them”. 

The news comes less than a week after big-four competitor Asda said it would be putting 5,000 roles into consultation as it looks to invest more heavily in its online business.

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