Waitrose puts hundreds of jobs in danger as it prepares to close a warehouse that was opened only four years ago.
The supermarket has announced that it will close its Enfield warehouse this summer, which could result in the loss of more than 500 jobs.
Enfield was opened four years ago, as part of an investment of £100m in Waitrose’s online delivery service.
The John Lewis Partnership which owns Waitrose has said that it wants to close the warehouse due to rising rental costs. The lease expires next year, and the company has been in talks with its landlord. Waitrose is expecting to save around £8.7m from the closure.
Most of the 545 warehouse roles have been determined to be “unsuitable alternative employment”. Retail Week and The Grocer were the first to report on these changes.
If the plans are approved, the Enfield warehouse will be used to fulfill online orders from customers. However, Waitrose would use other sites in Coulsdon or Greenford to service shoppers in that area.
Waitrose’s spokesperson said: “With the rental costs in Enfield increasing and the capacity elsewhere on our network, We are considering closing the site.
The proposal, while not one we take lightly, would support our future growth and maintain the high level of service that Waitrose.com provides to its customers.
The staff were informed of the closure plans on Thursday morning. John Lewis stated that no decision would be taken until the company had fully consulted its employees on site.
Enfield was opened only in 2020, as part of a major expansion of Waitrose’s online business. Ben Stimson, the supermarket’s former online chief at the time, said that the warehouse “was a big part” of the expansion plans.
Waitrose had to make significant investments in its online delivery capability after a partnership of 19 years with Ocado ended in the year 2020. M&S and Ocado agreed to a partnership, which ended the collaboration.
John Lewis Partnership is in a race to reduce costs. It aims to cut £600m in costs by January 2026.
The management has warned that up to 11,000 jobs may be affected by the changes.
John Lewis Partnership’s turnaround effort is starting to show results, despite its pain. The group’s pre-tax profit was £56m in the year to January, as opposed to a loss of £234m the previous year.