JD Sports has announced the closure of its distribution centre in Derby, affecting nearly 200 jobs as part of a strategic restructuring.
- The company is actively seeking alternative roles within the organisation for the displaced employees caused by the facility’s closure.
- JD Sports’ decision follows a comprehensive review of its global supply chain network aimed at enhancing operational efficiency.
- The Derby closure does not impact operations at the retailer’s other major distribution centre in Rochdale, Kingsway.
- The Derby facility was under a 20-year lease agreement and had previously offered substantial employment opportunities.
JD Sports has officially confirmed its decision to close its Derby distribution centre, which will impact just under 200 employees currently working at the facility. The company has expressed its commitment to supporting affected employees by exploring alternative job opportunities within the organisation. JD Sports has made this move following a strategic evaluation of its global supply chain network, exploring various avenues to enhance efficiency and streamline operations.
The company’s spokesperson addressed the situation, saying, “We have made the difficult decision to close our Derby distribution centre and are working with all those affected to ensure they are fully supported through this challenging period.” Despite the closure in Derby, JD Sports’ other significant distribution centre located in Rochdale, Kingsway, remains operational and unaffected by the cuts, ensuring continuity in other areas of their logistics operations.
The decision to shut down the Derby facility comes after JD Sports initiated a redundancy consultation in July, engaging hundreds of workers in discussions about potential job losses. August saw the company present its second-quarter trading update, highlighting a 2.4% increase in like-for-like sales along with an 8.3% rise in organic sales compared to the previous year. This financial performance has been attributed to the strength of JD Sports’ multi-brand operating model and favourable market conditions compared with the year prior.
In 2021, JD Sports had invested significantly in the Derby facility, signing a 20-year lease for the expansive 514,000 sq ft warehouse. At the time, the site boasted the capacity to support 500 staff members and a robust infrastructure with 56 dock doors and parking to accommodate 185 trailers. Despite the optimistic investment, the site has now become redundant as part of the strategic supply chain restructuring being undertaken by the company.
JD Sports’ decision to close the Derby distribution centre is a strategic realignment, with efforts focused on maintaining support for affected workers.
