Tesco is reorganising its distribution network with new sites in Reading and Dagenham, to move products closer to stores and to keep up with its growing convenience business in the South East.
A fresh food distribution centre will open in Dagenham, and a grocery distribution centre in Reading, all supplying stores or fulfilment centres for its e-commerce offerings.
The 900,000 sq ft Reading site is due to open by the end of May, and will create some 1,150 jobs. However, sites in Weybridge, and Chesterfield will close, cutting 650 and 400 jobs respectively, and around 140 jobs may be cut at its facility in Magor.
The distribution centre has been built on the site of a former Heineken brewery at Whitley in South Reading. It includes a vehicle maintenance unit, a vehicle wash and refuelling facility and a gate house.
The Dagenham distribution centre should open in June, and will create some 750 jobs. But volumes at the nearby Harlow distribution centre will be affected, and some 800 jobs stand to be cut.
Tesco says that all staff whose jobs are being cut will be offered new jobs, either at the new sites or within its stores.
A Tesco spokesperson said: “We’ve been reviewing our distribution network, and have confirmed plans to close some of our current distribution centres and open new ones that will give our customers a better service and improve working conditions for our colleagues.
“Colleagues who are affected will be offered jobs at other Tesco sites, including at the two new distribution sites that we will be opening in Reading and Dagenham. Two thousand jobs will be created at those sites.”