JD Sports has entered a consultation phase regarding potential job cuts at its Derby warehouse, signalling possible changes ahead for its workforce.
- The company is conducting a review of its Derby Commercial Park facility, which was leased in 2021, though no final decisions have been made.
- Approximately 200 employees are at risk of redundancy, with a conclusion to the consultation expected by September 6.
- JD Sports’ Rochdale distribution centre remains unaffected by these proceedings.
- Despite facing a challenging market, JD Sports anticipates a profit increase for the fiscal year 2025.
JD Sports, a leading retailer, is currently undertaking a review of its warehouse operations located at Derby Commercial Park. This move has raised concerns amongst the workforce, as it has entered a redundancy consultation phase, affecting around 200 employees. The decision regarding the future of this facility has not yet been made, leaving workers in a state of uncertainty.
The Derby facility, acquired under a 20-year lease in 2021, boasts a substantial size of 514,000 square feet and employs up to 500 staff members. It is equipped with 56 dock doors and parking space capable of accommodating 185 trailers.
In stark contrast, JD Sports’ distribution centre in Rochdale is not impacted by the current review, ensuring stability for its employees there. This selective review underscores the unique challenges and considerations facing the Derby site specifically.
A spokesperson for JD Sports acknowledged the delicate situation, stating, “We have entered into a period of consultation with colleagues based at our Derby distribution centre. This is in relation to a review of the Derby distribution centre. We are doing all we can to look after those colleagues impacted and recognise this may be an unsettling time for them.”
Financially, JD Sports reported revenues of £10.4 billion in the fiscal year ending 27 January 2024, marking a modest increase of 2.7% from the previous year. However, profit before tax and adjusting items fell by 8% to £912 million, attributed to unforeseen lower revenue in the latter half of the year and ongoing investment costs.
Looking ahead, JD Sports has maintained its profit guidance for the financial year 2025, projecting pretax profits between £955 million and £1 billion, according to their March update. This optimistic outlook suggests a potential stabilisation and growth despite current operational challenges.
The consultation at Derby reflects JD Sports’ efforts to navigate a complex economic landscape while aiming for future growth.
