Blow for Blair as Davidsons announces warehouse closure
Jan 14 2013
by Clare Damodaran
Davidsons Chemist has announced the closure of its warehouse and distribution function in Blairgowrie, with the loss of 15 jobs.
The move comes as part of the company’s plans to concentrate on expanding its operations into other areas of Scotland.
Speaking to the Blairie, the managing director of Davidsons, Allan Gordon, said: “I regretfully had to inform 15 of our warehouse staff last week that the decision had been taken to wind down the pharmaceutical warehouse part of our business.
“The agricultural merchants and the pharmacies are not affected by this announcement.
“This is not a decision that we have taken lightly, but by out-sourcing the warehouse and distribution function we will make significant savings of at least £250,000-a-year.”
Mr Gordon went on to explain that the decision is part of the company’s long-term strategy for growth, adding to the 30 outlets it has across Tayside, Fife and the north-east of Scotland.
He said: “The company has grown a lot in the last 15 years, going from 10 pharmacies to 30 in that time, and we want to expand even further in the next ten years.
“However, as our network of pharmacies increases and covers a wider geographical area, it costs an increasing amount of money to deliver products and goods to that network, which is why we have decided to out-source that particular aspect of the business.”
The company has no plans for site of the warehouse, which has been based on Welton Road behind Davidsons Veterinary Supplies since 1996.
One member of staff will be kept on to carry out wholesale duties, and one driver will also be kept on.
Operations at the warehouse are already being wound down, with work expected to cease completely early next month.
Perthshire North MSP, John Swinney, expressed concern at the announcement of 15 job losses in the town.
He said: “In a rural community such as East Perthshire this is a significant one-off job loss by a single company. I am very sorry that staff are having to deal with this difficult news.
“Davidsons is a major and valued company in the local area. I will be seeking a discussion with the company about its plans. I find it difficult to reconcile that as Davidsons announce the expansion of their business operations they feel it necessary to make such a significant number of staff redundant.
“The company has made clear this decision is to cut costs but they are also reporting a very healthy profit at this time. It is vital that companies whilst following the need to remain profitable also bear in mind their commitment to local economies and local employees who have served them well.
“I will pursue these points and the interests of my constituents with the company.”
Mr Gordon confirmed that he will be meeting with Mr Swinney today (Friday) to discuss any concerns.