(Bloomberg) -- J Sainsbury Plc is planning to close two depots impacting 1,400 roles as Britain’s second-largest grocer makes a push into automation.
The two sites serving Sainsbury’s general merchandise business Argos are set to shut by 2026. The retailer will spend £90 million ($109 million) overhauling its logistics network including automating a facility in Daventry.
Sainsbury is also shutting its office in Milton Keynes this year with employees expected to work remotely or in an alternative office.
UK supermarkets are cutting costs in a fight for shopper loyalty as the cost-of-living crisis drives consumers to rivals, including discounters Aldi and Lidl. Food price inflation is stubbornly rising, leading grocers to sacrifice margins to keep market share.
Read More: More Brits Turn to Aldi as Grocery Inflation Reaches Record High
Ocado Group Plc forecast on Tuesday that it’s UK retail e-commerce arm will be just above break-even this year as shoppers pull back amid the worst inflation on record.
Inflation is currently pushing up the average annual grocery bill by £811, according to Kantar. Two-thirds of households said they’re more concerned about food and drink prices than the public sector strikes rippling through the nation, or even climate change.
Rival Asda is seeking to save costs by cutting jobs, changing workers’ shifts, closing pharmacies and reducing opening hours for in-store post offices. Tesco Plc said in January it was eliminating hundreds of manager roles, closing all remaining food counters and shutting a maintenance base in Milton Keynes, also to cut costs.
©2023 Bloomberg L.P.
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