Future of north-east Argos stores remains unclear after Sainsbury's announcement
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Sainsbury’s announced today that it could cut around 3500 of its workforce as it looks to make a raft of changes across its stores.
Chief executive Simon Roberts said it would deliver a “step change in efficiency” though reductions in its operating cost base.
The supermarket said it would create a new supply chain and logistics operating model, moving to a single integrated supply chain and logistics network across Sainsbury’s and Argos.
The move is expected to reduce the grocer’s costs by £150 million by March 2024.
Some 150 of Argos standalone stores will be moved in to Sainsbury’s, reducing the number of standalone Argos stores to 100 over the next three years.
In total, the business said it will close around 420 Argos stores by March 2024 leaving the future of Aberdeenshire stores in Inverurie, Peterhead and Fraserburgh in doubt as none of the three has a Sainsbury's site, the only one outside of Aberdeen being the small Sainsbury's unit in Kintore at Midmill.
Sainsbury’s will also close its meat, fish and delicatessen counters to save at least £60 million in operating costs, as well as reducing food waste and energy consumption in stores.
The retailer said this would “better reflect customer demand and the way customers shop in our stores now and in the future”.
As part of the closures of its Argos stores and found counters, Sainsbury’s said it would “aim to find alternative roles for as many colleagues as possible”.
Since March, Sainsbury’s has hired an additional 29,000 colleagues to support its efforts to feed the nation, and it expects to increase its number of staff by 6000 by the end of the financial year.
Sainsbury’s added that it expects to close 15 to 20 supermarkets and 50 to 60 convenience stores in the next three years, with separate plans to open 100 convenience stores over the next three years.
Chief executive Simon Roberts said; "Covid-19 has accelerated a number of shifts in our industry.
"Investments over recent years in digital and technology have laid the foundations for us to flex and adapt quickly as customers needed to shop differently.
"Around 19 per cent of our sales were digital this time last year and nearly 40 per cent of our sales are digital today.
“While we are working hard to help feed the nation through the pandemic, we have also spent time thinking about how we deliver for our customers and our shareholders over the longer term,”
Elsewhere, Sainsbury’s said it will be investing in Habitat, which will become its main home and furniture brand across the supermarket and Argos.
