3,000 shelf-stackers to sort out Sainsbury's IT

Embattled supermarket chain Sainsbury's is to hire 3,000 shelf-stackers as part of a back to basics campaign following the failure of its £3bn investment in its distribution network and supply chain IT that left goods stuck in depots and warehouses.

The three-year investment in delivery and depot management computer systems is a legacy of previous CEO Peter Davis but it has failed to deliver the expected benefits and Sainsbury's is now facing a £500m writedown that will plunge it into the red.

Sainsbury's is in talks with its IT suppliers about how to rectify the problems.

Sainsbury's CEO Justin King is expected to launch the "Getting the Basics Right" campaign tomorrow as part of a trading update on the company's full-year profitability figures.

As part of the change in direction up to 700 management positions at Sainsbury's London headquarters are also expected to be axed.

Sainsbury's declined to comment ahead of the official Stock Exchange announcement tomorrow morning.

The supermarket chain is the latest in a series of companies, such as MFI, who have blamed poor financial results on problems with new IT systems.