J Sainsbury PLC said Wednesday that it will close two depots by 2026 as part of its automation and modernization plans in a move that will affect 1,400 workers.
The U.K. grocer SBRY, -1.11% said that it will integrate its general merchandise logistics network in England with a proposed investment of around 90 million pounds ($ 108.2 million), consolidating five Sainsbury’s and Argos depots into three, and further automating its Daventry site.
The sites proposed to close are the Basildon Distribution Center and Heywood depot, the company said.
Sainsbury has started a consultation process with the 1,400 affected workers, who will have the opportunity to explore alternative roles within Sainsbury’s and Argos, it said.
The company also plans to close its office in Milton Keynes, allowing the group to save on operating costs.
Write to Michael Susin at michael.susin@wsj.com