Talks to convince Shop Direct to stay in Greater Manchester fail

By

Barbara Santamaria

Published
Apr 18, 2018

A group of politicians, union leaders and local authorities have asked Shop Direct to reconsider its plans to relocate its existing fulfilment sites in Greater Manchester to the East Midlands, after it announced last week that the move would result in almost 1,800 job losses.

The group, led by Usdaw, a trade union, held a meeting with the online retailer last Friday to offer alternative proposals and explore whether the company was willing to reconsider its decision. In a joint statement it said, however, that Shop Direct showed “no willingness to engage on these proposals”.

The company, owner of Littlewoods.com and Very.co.uk, is planning to close its sites in Greater Manchester from 2020 onwards after a review concluded that the sites had limited accessibility, layout and loading restrictions.

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Greater Manchester has been the home of the company during its transition from a catalogue business to the UK’s second largest pureplay digital retailer.

The mayor of Greater Manchester, Usdaw and local members of parliament expressed their disappointment, and Oldham Council tabled alternative proposals of a site of a similar size, accompanied by a favourable business package, at Broadway Green, Chadderton.

“Regrettably, it quickly became apparent that Shop Direct have committed to their East Midlands site and their plan of a staged transition starting in two years’ time,” said Usdaw.

“Usdaw will be holding the company to their legal obligations to engage in a meaningful consultation and the union’s test of meaningful is that they fully explore any options of relocating to a nearby site. Moving to the Midlands is not a done deal, the staff through their trade union are entitled to a say in the future of the business.”

A Shop Direct spokesperson said: "We will continue to work closely with local authorities, community leaders and Usdaw over the next two to three years as we help to prepare them in the best possible way for the transition ahead."

Shop Direct has said that the new site in the East Midlands will help it process more orders and allow it to use new technology to make the business more responsive. Work on the new site is expected to begin in May.