The Lincolnshire Co-op society is to close two DCs, putting 111 jobs at risk.
The supermarket plans to close its two food DCs in Lincoln, which provide ambient goods to its 83 stores in the area.
Co-op said that closing the two sites will save an estimated £1m a year through increased efficiency, and will give its customers more product choice.
Lincolnshire Co-op chief retail officer Mark Finn said the move was the result of a customer shift away from ambient goods and towards fresh and frozen food.
The work will be transferred to its Castlewood depot, which handles the local stores’ fresh and frozen distribution and is part of the LIDIA distribution network that services Co-op stores across nationwide.
Finn said: “Recently, we’ve seen a shift in what our customers want. They come to us for fresh and frozen food, such as stocking up on fruit and vegetables or picking up a meal for that night.
“As our demand for the fresh and frozen goods increases, it’s more efficient for us to combine the two separate delivery streams.”
A support centre for the distribution and administrative staff at risk of redundancy has been established, which will work with JobCentre Plus to advise and help former employees meet new employers.
Finn added: “The difficult decision to close our food distribution centres is not one we have embarked on lightly. However, we’re confident that this is the right decision for the Society.
“It does not in any way reflect on our hard-working colleagues, who we thank for their efforts over the years.”
