Wolseley UK has announced a major programme to transform the way it serves its customers following a wide-ranging review of its plumbing and heating operations.
The reorganisation will result in the closure of around 80 branches across the UK and up to 800 redundancies it will also see Wolseley operate from three regional distribution centres in the UK instead of four.
Overall, the reorganisation will take two to three years to complete and is expected to deliver annualised cost savings of £25 million to £30 million. It is too early to provide details of which branches will close, either by region or brand identity.
The resulting transformation plan and £100m investment will make Wolseley UK the first choice specialist for trade customers delivering the highest levels of customer service in the industry coupled with a leaner, more efficient operating model which will significantly improve service levels, product availability and choice. The plan is likely to result in significant headcount reductions and branch closures within the business, subject to employee consultation, but it will also deliver sustained investment to help transform service and improve performance. The Civils, Utilities and Infrastructure businesses in the UK are unaffected by the review.
Patrick Headon, Managing Director of Wolseley UK, said:
“The trends in our profitability have been disappointing and we need to take action to improve our customer proposition and the efficiency of our business. We have an outstanding team made up of hard working and dedicated people across the UK and we are very conscious of the impact this transformation of the business will have on some of them. We are therefore committed to carrying out this programme as sensitively as possible, using voluntary means to achieve the proposed headcount reductions wherever possible. Over time I’m confident our proposals will benefit both our colleagues in the UK and the customers they serve every day.”