JD Sports Fashion plans to shut its Derby distribution center, impacting nearly 200 jobs.
- Affected employees may be offered alternative roles within the company.
- This decision is part of a strategic review of JD Sports’ global supply chain.
- The closure does not affect the company’s facility in Rochdale, Kingsway.
- Despite challenges, JD Sports reported increased like-for-like and organic sales.
JD Sports Fashion has announced a significant restructuring move, which involves closing its Derby distribution center. This decision impacts just under 200 employees who are currently employed at the site. Recognizing the challenges faced by these employees, JD Sports is considering offering alternative roles within the company to mitigate job losses.
The decision to close the Derby warehouse is a result of a comprehensive strategic review undertaken by JD Sports to optimize its global supply chain network. The company explored various options before concluding that the closure was necessary.
It is noteworthy that JD Sports’ other major distribution center located at Rochdale, Kingsway, will remain operational and is not affected by this closure.
A spokesperson for JD Sports communicated the gravity of the decision, stating, “We have made the difficult decision to close our Derby distribution center and are working with all those affected to ensure they are fully supported through this challenging period.”
The Derby facility, which JD Sports leased in 2021, encompasses 514,000 square feet and was designed to accommodate 500 staff members, featuring 56 dock doors and parking for 185 trailers. This substantial investment highlights the scale of JD Sports’ operations and its commitment to infrastructure prior to the closure decision.
In the months leading up to the closure, hundreds of workers at the Derby warehouse entered a redundancy consultation process. This step was part of JD Sports’ effort to manage the transition effectively and with transparency.
Despite this restructuring, JD Sports reported positive financial outcomes in their Q2 trading update for the 13 weeks ending August 3, 2024. Like-for-like sales increased by 2.4%, and organic sales saw a growth of 8.3%. CEO Régis Schultz attributed this growth to the company’s multi-brand operating model and favorable year-on-year comparisons.
JD Sports’ strategic move to close the Derby warehouse reflects a broader restructuring effort aimed at optimizing its supply chain.
