MORE than 100 jobs will be lost at a Boots distribution centre after the retail group announced plans for an overhaul of its warehouse operation.

Boots is to shed up to 2,250 jobs over the next three years with the creation of a modern automated £70m warehouse in Nottingham, which will see 17 regional sites replaced by smaller lorry-docking facilities.

Its site in Spennymoor, County Durham, is to close as part of the restructuring, with the loss of 110 jobs.

A spokesman said the three-year implementation period meant Boots would be able to minimise the number of redundancies through normal staff turnover. It would also look to redeploy staff.

The retail group said yesterday that it was investing in improving 700 smaller community and high street stores.

Boots chief executive Richard Baker said: "Our small stores have been under-invested and are important to the communities they serve.

"It is appropriate that we invest in these stores in order to provide the pharmacy-led healthcare role that both we and the Government envisage."

The changes to the supply chain and investment in community pharmacies will cost about £250m, funded with proceeds from the £1.9bn sale of its Healthcare International drugs division to Reckitt Benckiser last year. The plans emerged as the company moves towards the completion of its merger with Alliance UniChem later this year, which will create a company with a market value of more than £7bn.

Joanne McGuinness, national officer for union Usdaw, said yesterday: "Our message to our members is not to panic as, even if the proposal to centralise the existing supply chain goes ahead, there will be no job losses for at least three years.

"Although we welcome the company's commitment to mitigate any future job losses through natural wastage, redeployment, relocation and re-skilling, we will be examining the business rationale throughout the consultation to make sure every possible option is explored."