Sainsbury’s may be closing 125 stores across its portfolio of supermarkets, convenience stores and Argos branches, but will be opening even more across new locations in which its presence will make ‘a larger impact on the firm’s operations.’
The grocer has said that it expects to close up to 15 main supermarkets, 40 convenience stores such as Sainsbury’s Locals, and 70 Argos branches.
However, it will open 10 new supermarkets, 110 new convenience stores, and place 80 Argos branches in other Sainsbury’s.
It’s expected that the closures will deliver an ongoing net operating profit benefit of £20million per year, adding that no jobs would be lost as a result of the Argos move, stating that there are already 289 Argos branches inside Sainsbury’s, with around half of these bing ‘redeployments.’
Sainsbury’s has said that the Argos relocations would be to nearby Sainsbury’s stores.
Recent results from Sainsbury’s have revealed a drop in merchandise sales. The grocer added that while Argos “continued to grow market share in key categories,” its sales had been impacted by “reduced promotional activity and the timing of new product releases in gaming and toys.”