2,000 jobs at risk as Littlewoods owner Shop Direct shuts three warehouses

Online retail giant Shop Direct is to close three distribution centres putting almost 2,000 jobs at risk.

The company – which owns Littlewoods and Very.co.uk – is to close sites in Shaw, Little Hulton and Raven, all in Greater Manchester, from mid-2020 onwards.

It said it plans to build a new warehouse in the East Midlands employing 500 people, but that redundancies were likely.

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In a statement, Shop Direct said: “As part of an 18-month project, Shop Direct reviewed its fulfilment sites at Shaw, Little Hulton and Raven, and concluded that limited accessibility, layout and loading restrictions, coupled with a lack of space, mean that these centres won’t meet the group’s future operational ambitions.

“The move is expected to impact 1,177 permanent Shop Direct colleagues and 815 agency colleagues. Redundancies are anticipated as a result of the site closures.”

The new automated, 500,000 square foot distribution and returns centre will be based near the M1 and East Midlands Airport on the Leicestershire-Nottinghamshire border.

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Derek Harding, interim group CEO 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.”

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He said the company would be working closely with the Usdaw union to ensure staff affected by the decision were treated well.

“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 re-training,” he said.

“It’s also our plan to offer apprenticeships in in-demand skills across our existing operational sites.

“Our priority is to provide a fair outcome for our team and we’ll do everything we can to support colleagues through this transition.”

Development on the new site is due to get under way next month and should be up and running by 2021.

While many bricks and mortar retailers have struggled in recent years – most recently it was reported Mothercare was mulling closing one in three of its branches – online shopping has taken off.