Marks and Spencer (M&S) is opening a new distribution centre in Welham Green, Hertfordshire, in a bid to cut costs and boost sales in its clothing arm.
As part of the move to the 495,000 sq ft site, formerly used by Tesco, M&S will be shutting down its operations in Neasden, north London, affecting 380 jobs.
DHL and XPO Logistics employ the workers at the M&S site in Neasdon. Both firms have now entered a consultation with staff.
Gordon Mowat, director of clothing and home supply chain, said the decision to move from Neasdon was "not one we have taken lightly".
The announcement comes after M&S revealed a like-for-like sales fall in both its food and clothing divisions over Christmas.
Mowat said: "M&S is changing and we are transforming our stores and supply chain to better serve our customers.
“The new site in Welham will deliver better service and availability for our customers and enable us to become a faster, more agile, lower cost retailer. The location has fantastic transport links and we’re looking forward to building a great operation in Hertfordshire."
The new site employs more than 500 people through a third-party logistics supplier.