JD Sports Shuts Derby Hub, Impacting 200 Jobs business, fashion, fashion news

JD Sports Fashion has announced the closure of its distribution centre in Derby, East Midlands, resulting in the loss of 200 jobs. The decision follows a consultation period initiated in July and was communicated to employees at the Derby Commercial Park facility on September 6^th.

A spokesperson for JD Sports confirmed the company’s difficult decision, stating: «We have made the difficult decision to close our Derby distribution centre and are working with all those affected to ensure they are fully supported through this challenging period.”

This closure comes despite a recent resurgence in the sportswear retail giant’s performance after a challenging start to the year. Just three years ago, JD Sports signed a 20-year lease on the newly built 514,000 square foot facility.

The decision stems from a strategic review of the group’s global supply chain network, which explored all available options for optimization. While this closure impacts the Derby location, JD Sports” large distribution centre in Rochdale, near its head office in Bury, remains unaffected.

This news follows a positive Q2 trading update released in late August, which highlighted a «strong, agile multi-brand model» driving sales growth. The company reported an 8.3% increase in organic sales and a 2.4% rise in like-for-like sales during the quarter.

Earlier this year, JD Sports” share price had declined following reports of soft sales in Q4. Analysts at the time speculated that the company’s reliance on Nike, whose own sales were faltering, presented a vulnerability for the retail chain.