Si s sheds JS work
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by Karen Miles • One of the UK's most established supermarket distribution contractors, WJ Sims, has put its multi-million pound Sainsbury's business up for sale.
Those interested in the operation are understood to include Heron Distribution, part of the Heron Group.
Sainsbury's refuses to confirm whether the contract will automatically be awarded to the buyer or how long the contract has to run.
But Wi Sims is known to have worked for the supermarket giant for at least 30 years.
The sale is described by WJ Sims directors as "creating endless opportunities" for the haulier—but they refuse to comment further.
It is understood, however, that one of the options being considered by the company is further specialisation in refrigerated transport.
WJ Sims' three-acre Hertfordshire site is on the market, along with Sainsbury's work consisting of the servicing of hundreds of stores in the south-east, which will be sold with it.
Around 90 vehicles and 110 drivers work from the Hoddesdon, Herts-based centre, which additionally carries out crate washing for the supermarket giant. Sims has other sites: at Croydon in South London—where it also operates for Sainsbury'sHeathrow and Felixstowe. A sale will present Sainsbury's with a clean break with tradition. WJ Sims opened the site around 30 years ago for the company. In the last decade, its total turnover has grown from approximately £2.8 million to around £9m. The Sainsbury's business is believed to be a significant part of Wi Sims' total turnover.
Ten years ago Sims came sixth in a top 10 league of hauliers, according to ICC Business Ratios. Today the company says it has a "satisfactory" profit margin.
The sell-off follows Sainsbury's-induced changes at a fellow Hoddesdon contractor called B&H Transport & Warehousing. B&H has been told that 70% of its work using a 14,000m2 facility at Hoddesdon is no longer needed from 31 December.
Sainsbury's says it no longer requires all of B&H's warehousing because of changing bonding requirements for wines and spirits which mean that it needs less storage space in the region. B&H's site had acted as an overspill for Sainsbury's own warehousing.
A B&H source says: "In the area, there are all sorts of balls in the air and it's a tremendous worry."