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Somerfield reviews haulage

18th November 1999
Page 10
Page 10, 18th November 1999 — Somerfield reviews haulage
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Which of the following most accurately describes the problem?

• Wincantcn and Exel Logistics have been warned that their Ostribution contracts with Somerfield are under review following the troubled supermarket groups decision last week to sell its 140 largest stores and 350 Kwik Save stores.

The restructuring of the business, which has struggled since an ill-fated merger with Kwik Save last year, is also expected to cost jobs among the 1,400 staff at Somerfield's Bristol headquarters.

A spokeswoman confirms that job losses are likely in the distribution area. The company was already reviewing how to reduce two distribution systems into one following the merger, and there will be some distribution redundancies," she says. "It's too early to say where those redundancies will occur—we'll have to see first which stores leave the portfolio."

Somerfield is confident that many of the stores will be bought by rivals; the spokeswoman says Wincanton and Exel are being briefed on developments.

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