Jobs blow as retailer plans to close centre
ONLINE retailer Shop Direct has announced plans to close its distribution centre in Shaw
In a double jobs blow to the area it is also to shut its returns centre at Raven Mill in Chadderton.
Union leaders said workers were ‘shocked and devastated.’ Almost 2,000 job losses are expected.
The company, which owns Littlewoods and Very, plan to open a huge automated centre in the East Midlands in 2021, with the closures in Oldham, together with another distribution centre in Little Hulton, Salford, expected to start in 2020.
The announcement affects 1,177 permanent staff and 815 agency workers.
The company acknowledged ‘a tough day for the business’ but said the proposals were ‘necessary for our future and to enable us to continue to grow and meet rising customer expectations.’
A review over 18 months found the three centres had ‘limited accessibility, layout and loading restrictions, coupled with a lack of space,’ the company added.
Very, Shop Direct’s flagship brand, grew like-forlike revenue last year by 14.6 per cent, on the back of 15.9 per cent growth in 2016 and 17.4 per cent in 2015.
Debbie Abrahams, the Oldham East and Saddleworth MP, blasted the company for a lack of consultation and said she would be writing to Theresa May to demand the PM and government ministers were ‘fully engaged’ in supporting workers.
“It is devastating news for the Shop Direct staff who have been informed and their families, and the anticipated redundancies will have a dreadful effect on the local community,” she said.
The company said the move east would mean more orders could be processed and new technology used to make the business ‘more responsive.’ Bosses confirmed consultation with Usdaw, the trade union, has started.
Mike Aylward, Usdaw divisional officer, said: “The company has been providing employment for families in the North west for many decades and these sites have different generations of the same families working there. The impact of closures will be huge on hundreds of families, local businesses and the local communities. The announcement is also a very sad day for the North west as Shop Direct was created from the merger of the iconic mail order and retail giants, Littlewoods and Great Universal Stores and these are the company’s last remaining fulfilment sites in the region.”
Derek Harding, interim group CEO of Shop Direct, said: “We take very seriously our responsibilities to our colleagues, many of whom have been with us for a long time and who work tirelessly to deliver for our customers.
“We are working alongside Usdaw, our recognised trade union, and will listen carefully to what they have to say. We’ll also work closely with local authorities and community leaders to make sure this process is carried out as fairly and sensitively as possible for our colleagues.
“We’re announcing this now to give our colleagues the best possible opportunity to prepare for the change. Over the next two to three years, we’ll be partnering with local and national organisations to provide our colleagues with tailored advice and training, including career skills, access to financial planning and vocational courses to support retraining. It’s also our plan to offer apprenticeships in in-demand skills across our existing operational sites.”
Shop Direct, the UK’s second largest digital retailer, delivers 49 million products annually.