JD Sports has announced plans to close its Derby distribution centre, impacting nearly 200 jobs.
- Employees were informed following a six-week consultation process, according to a report by the BBC.
- The closure follows a strategic review of JD Sports’ global supply chain network.
- Efforts are being made to find alternative roles within the company for the affected employees.
- The decision comes despite a 2.4% increase in like-for-like sales in the second quarter.
JD Sports, a prominent name in the sportswear retail sector, has made the difficult decision to shut down its distribution centre located in Derby. The move is set to impact close to 200 jobs, following an extensive six-week consultation period where the affected staff were duly informed on Friday, as reported by the BBC.
The Derby facility, which spans over 514,000 square feet, was acquired under a 20-year lease agreement a mere three years ago. This decision to close the facility is rooted in a strategic analysis of the company’s global supply chain network, ensuring it aligns with the retailer’s long-term objectives.
Despite this significant organisational change, JD Sports has expressed its commitment to supporting its workforce through this period. A spokesperson for the company stated, “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.” Furthermore, the company is actively seeking alternative employment opportunities within its ranks for those impacted by the closure.
Interestingly, the announcement arrives on the heels of a modest 2.4% increase in like-for-like sales during the second quarter. However, JD Sports has issued a cautious outlook for the remainder of the year, citing the volatile nature of the global macroeconomic environment.
The closure of the Derby distribution centre underscores JD Sports’ strategic recalibration within a challenging global market.
