HelloFresh too Cut 900 UK Jobs as Warehouse Closure Deepens Losses
HelloFresh is set to close its Nuneaton distribution center, impacting nearly 900 jobs, as the meal-kit delivery company struggles with ongoing market challenges in the UK. The closure, announced in October 2024, forms part of a wider strategy to streamline operations and consolidate fulfilment, despite a recent opening of a new automated facility in Derby.
The move comes as HelloFresh reported a £14.8m operating loss for its UK operations in 2024, attributed primarily to non-recurring costs associated with the Nuneaton warehouse closure.The company cited a “challenging market backdrop” marked by cost-of-living pressures, high interest rates, and fluctuating consumer demand, contributing to a five per cent decrease in turnover. Despite this, HelloFresh maintained a gross margin of 27 per cent through disciplined pricing and procurement.
The 237,000 sqft nuneaton site, opened in 2020 as HelloFresh’s second UK facility, will remain operational until mid-2025. hellofresh stated the consolidation will allow it to “offer the best product to our customers while reducing emissions and waste” by leveraging more technologically advanced parts of its network.
The news follows a competitive period for meal-kit companies, with rivals like Mindful Chef returning to profit while navigating similar economic headwinds.