Business

Sainsbury’s and Argos store cuts in £500m cost-cutting plan

Sainsbury’s and Argos store cuts in £500m cost-cutting plan
no comments
0
0

Sainsbury’s has announced their shake-up plan to help save £500m over the next five years. The company said they will shut 70 Argos stores and relocate 80 of its supermarkets. Sainsbury’s will also close 15 large supermarkets and 40 convenience stores. 

Editorial credit: Tana888 / Shutterstock.com

The company will open around 120 new grocery outlets which will be mainly convenience stores, there will only be 10 new large store which they hope to place in suburban locations. There is no ideas on which stores will be closing. 

The plans come after investors warned profits had dipped over the past six months. Sainsbury’s have cut prices on some daily essential products as well as launching budget bands to try and  match the success of Asda’s own brand range. 

The company blames bad weather and high marketing costs of the drop in profits. 

Chief Executive Mike Coupe told investors: “Sales momentum was stronger in all areas and we further improved our performance relative to our competitors, particularly in grocery.

“We have focused on reducing prices on every day food and grocery products and expanding our range of value brands, which have been very popular with customers.

“At the same time, we are investing significantly in our supermarkets, driving consistent improvements to service and availability.”

Clothing and food sales increased but household goods fell by 2% whilst fuel dropped 0.2%. 

Skip to toolbar