Retail giant Shop Direct to create 500 new jobs in county
ONLINE retail giant Shop Direct has confirmed plans to create a huge distribution centre in Leicestershire which could create 500 new jobs. THE company, which owns Very and Littlewoods, has said it will create a 500,000 sq ft hub.
It will be based at East Midlands Gateway, a £700 million logistics park under construction near the airport.
The firm made the decision to build a hub in the East Midlands following an 18-month review into three current sites in the North West.
Shop Direct concluded those centres did not meet its “operational ambitions” and a new base at East Midlands Gateway would allow it to process more orders and use new technology to become more responsive to customers.
The company said the move will create around 500 new permanent roles, as well as 200 to 300 agency workers joining the workforce at peak periods.
Development on the new site is expected to begin next month and could be fully operational by 2021. Shop Direct will begin exiting sites in Shaw, Little Hulton and Raven, in Greater Manchester, in 2020, which is expected to impact about 2,000 roles.
Derek Harding, interim group chief executive of Shop Direct, said: “This is a tough day for the business and we know how difficult this news will be to hear for our teams in Shaw, Little Hulton and Raven.
“However, these proposals are necessary for our future and to enable us to continue to grow and meet rising customer expectations.”
It is understood that fellow online retail giant Amazon could also be on its way to East Midlands Gateway.
Last month, it was reported that the firm was understood to have negotiated a deal for a 500,000 sq ft facility, roughly the size of eight full-size football pitches.
The building, which will have two mezzanine floors to provide 1.3 million sq ft of space, is expected to be ready by April 2019. A source said the deal would create up to 3,300 jobs.
It is also understood Nestlé, through third-party logistics operator XPO Logistics, is close to signing for a 700,000 sq ft distribution centre at the site – creating thousands more jobs.
East Midlands Gateway, which is located next to the M1 motorway and East Midlands Airport – the UK’s second-largest cargo airport – has planning consent for up to six million sq ft of logistics space and will incorporate a 50-acre strategic rail freight interchange.
Named SEGRO Logistics Park East Midlands Gateway, the development will directly create 7,250 jobs, alongside 900 construction roles and 3,000 indirect jobs.
SEGRO is funding £100 million of infrastructure at the interchange, including a 50-acre rail terminal and extensive road improvements that are designed to give the best possible connectivity to the 10 plots now available to occupiers.