Sainsbury’s is to close two Argos warehouses as part of a modernisation of its distribution network.
It is set to close depots in Heywood and Basildon by 2026 and consolidate its supply chain to three remaining facilities including one in Daventry. Around £90 million has been earmarked automate the Daventry site as part of the modernisation programme.
The distribution centre at Heywood Distribution Park in the Northwest, was developed for Argos in 1998 by Canmoor and is cross docked boasting around 381,106ft² of warehouse space. It is owned by Tritax Big Box REIT, which acquired the property in 2015 for £34.1 million. Lease expiry on the site is due in 2028.
Argos has occupied the 381,505ft² Basildon warehouse since the 1990s. It was crowned champion in the Best Place to Work category at the Talent in Logistics Award in 2019.
It is thought up to 1,600 staff at the sites including those working for Wincanton, which operates HGV services at the sites, will be affected.
Sainsbury’s struck a £1.4 billion deal to acquire Argos in 2016.