Almost 40 jobs could go in Jersey and Guernsey after Le Riche's Stores announced plans to relocate its grocery warehouse. Twenty nine jobs in Jersey, as well as 19 in Guernsey, could be lost if Le Riche's moves its grocery warehouses to the south of England.
Le Riche's is blaming high operating costs, as well as the possibility of sales and employment taxes.
Union officials and senior management met on Friday to discuss the moves.
Le Riche's, which is owned by Channel Island Traders, says everyone who is affected will be given the chance to work in other areas of the company.
The supermarket chain, which is the largest in the Channel Islands, says a single warehouse in the UK will be more efficient to run and will make it easier for suppliers to get products to the island, as well as allowing the company to use the warehouses in Jersey for other purposes.
A final decision on if, and when, a move will happen, will take place after a feasibility study is finished early next year.