Automation transforming operational ambitions.
According to Deloitte the retailing industry is seeing significant disruption and is transforming in response.
Retailers need to reduce costs and increase efficiency in a challenging market where consumer spending is being squeezed and costs are rising.
At the same time they need to invest in online, refresh core systems, and develop smarter, personalised offers in addition to rethinking the role of their stores.
Online retail giant Shop Direct (owner of Littlewoods) have announced that following an 18-month review it was closing 3 sites in the north west (Manchester) with the loss of up to 2000 jobs.
Derek Harding, interim group chief executive 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.
The company are creating a new 500,000 sq ft automated distribution centre (hub) based at East Midlands Gateway.
A new £700 million logistics park being constructed near East Midlands airport, to replace the closing sites with the prospect of creating 500 new jobs in the area.
Rise of automation.
The key DRIVER for change is the business’s focus on meeting its “operational ambitions”.
The business needs a new, purpose-built and automated facility in a central, well-connected location, that can accommodate all one-man fulfillment and returns operations on one site, and that provides room for continued expansion to enable the business to meet customer demand.
Benefits of transforming the Business.
These proposals are necessary and should enable the business to continue to grow and meet rising customer expectations.
The new base at East Midlands Gateway would allow the business to process more orders and use new technology to become more responsive to customers by optimising and streamlining their processes and aligning the supporting information systems to make best use of technologies.
Mr T Says:
The outcomes the business will derive from the move will be to align new capabilities to new opportunities to: Reduce costs, Improve customer satisfaction and Improve profits.
Link to source of information: https://www.leicestermercury.co.uk/news/business/retail-giant-shop-direct-owns-1443975