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ixed bag from Storehouse
• High Street retail giant Storehouse is on the brink of awarding 27 million of distribution contracts to BRS and Christian Salvesen, following its decision to negotiate contracts centrally for all its trading divisions.
The move is likely to mean job losses at Christian Salvesen, which already distributed for BHS, flagship of the Habitat-to-BHS group. The company says it is keeping a low profile on the new contract, which is worth only half as much as the previous contract — but after rationalisation and talks with unions, around 45 jobs and 22 vehicles may be axed at Salvesen's Atherstone depot, representing about 2% of the company's fleet.
BRS, which previously distributed for Mothercare and provided Habitat with vehicles on contract hire, will benefit slightly: the new contract will mean an increase of about five vehicles and drivers.
Storehouse is combining its Habitat, Mothercare and BHS operations — based at Wallingford, Wellingborough and Atherstone respectively — into one centralised system. Goods destined for all three chains will now leave from each of the three depots.
In the spring the group will open four trans-shipment centres, at Glasgow, Wallingford, Bristol and Manchester. Goods will be trwiked to these transshipment centres from the national distribution centres as part of Storehouse's revamped national "trans-shipment centre concept".
BRS and Christian Salvesen lorries will still carry the individual stores' liveries, but they will now carry stock for all three subsidiaries. BRS will run two of the new transshipment centres under "Storehous guidance".
Pat Diamond, deputy chief executive of BHS, says the revamp will lead to "substantial" savings for Storehouse, because incorporating the three individually-negotiated distributions into one will give the group "more muscle". BRS will not comment on the contract until all agreements have been finalised.
BRS is providing fish and seafood processor Pinneys with nine refrigerated vehicles in a three-year contract hire deal worth £240,000. Until now the Annan, Dumfries firm rented its fleet from BRS. The package includes a Leyland freighter 1617 and three Leyland Roadrunners, all with refrigerated bodies, three Mercedes 307D refrigerated intergral vans and two Mercedes 307D insulated integral vans, along with a maintenance and recovery deal. The vehicles carry the Pinneys livery and have been supplied by BRS's Carlisle branch.