More than 100 jobs are at risk after the Co-op announced plans to close its two food distribution centres in Lincoln.
The sites at Pioneer Way and Whisby Road supply goods to 83 food stores.
But the company is proposing to shift its workload to a depot in Nottinghamshire from September.
The decision puts 111 distribution and office staff at risk of redundancy and consultation has now begun on their future.
Chief retail officer Mark Finn said: “The difficult decision to close our food distribution centres is not one we have embarked on lightly. However, we’re confident that this is the right decision for the society because it will lead to significant savings,which we can invest elsewhere."
He said the decision follows a change in customer behaviour, with more people using Co-op stores for restocking on fruit and vegetables and picking up meals for same-day use.
Mr Finn said: “This means we’ve been changing the mix of products found in our food stores, with more emphasis on fresh and frozen goods rather than tins, packets and bottles.
“As our demand for the fresh and frozen goods increases, it’s more efficient for us to combine the two separate delivery streams.”