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Co-operative Group opens new distribution centre

The Co-operative Group has officially opened its new state-of-the-art distribution centre in Newhouse, Scotland following a capital investment of £25 million. The centre will service 618 stores in Scotland and Northern Ireland and will emply 1,000 staff.

GENERAL MERCHANDISE

Co-operative Group opens new distribution centre

The Co-operative Group has officially opened its new state-of-the-art distribution centre in Newhouse, Scotland following a capital investment of £25 million. The centre will service 618 stores in Scotland and Northern Ireland and will emply 1,000 staff.

The 503,000sq depot, just off the M8 near Glasgow, will be fully operational by September, will have an an output of 60.0 million cases a year and will operate a fleet of 370 lorries and 140 fork-lift trucks and low level order pickers.

The depot will replace The Co-operative’s existing distribution centre in Pitreavie, which closed earlier this year, and Cumbernauld and Harthill, which will close before the end of 2011. The Co-operative said it hopes to transfer as many staff as possible from these sites to Newhouse.

The opening of the Newhouse centre forms a major part of the Co-operative's overhaul of its food logistics network following its acquisition of Somerfield in 2009. The overhaul aims to upgrade the existing facilities, improve supply chain performance and help create a platform for a superior store service.

Peter Marks, The Co-operative’s group chief executive, said: “Newhouse is an excellent location to serve our stores across Scotland and Northern Ireland and is the latest major investment in our logistics network.

“Our new regional distribution centre is also a major investment in and commitment to the local community and will not only provide major employment locally but will also help further boost the local economy for many years to come.”

Newhouse features several energy-saving and recycling initiatives, including rainwater harvesting to reduce water demand on site and waste oil burning systems for producing heating. It also has high reflective ceiling panels in the warehouse, which direct light downwards and LED lighting that provides a 60% decrease in energy costs while increasing lamp life. 

Marks added: “Newhouse is the latest phase in the ongoing development of our logistics operation nationwide, which at the end of these major changes will mean we will have an efficient and modern logistics network that will reflect the Co-operative’s position as one of the UK’s ‘big five’ food retailers.” 

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