Sainsbury’s will open up to another 150 Argos stores in supermarkets and a further 150-200 collection points over next three years.
Sainsbury’s has confirmed a number of key changes to its Argos business as part of its latest strategy update and interim results for the 28 weeks ending September 19, 2020.
By March 2024, the grocer will open up to 150 more Argos stores in Sainsbury’s and add 150-200 more Argos collection points in supermarkets and convenience stores, so that every Sainsbury’s supermarket will have either an Argos store in-store or a collection point.
However, it will close around 420 Argos standalone stores, reducing the UK standalone store estate to around 100 by March 2024.
Argos sales grew by nearly 11% in the first half, with 90% of sales originating online and almost two million customers re-discovering Argos despite standalone Argos stores being closed for 12 weeks.
Notably, 120 of the standalone stores have not reopened since they were closed in March. These stores will now be closed permanently.
There are currently 315 Argos stores in Sainsbury’s supermarkets and 296 collection points across supermarkets and convenience stores.
Sainsbury’s also confirmed that it would close its meat, fish and deli counters, based on reduced customer demand. The move will make stores simpler to run and reduce food waste.
While Sainsbury’s will look to redeploy as many colleagues as possible from the affected areas, the moves could result in 3,500 job losses.
The ambitions for Habitat will also be expanded, with it becoming the main home and furniture brand in Argos and Sainsbury’s.
Total retail sales for the 28-week period grew 7.1% (excluding fuel) with like for like sales up 6.9%. Grocery sales were up 8.2% and general merchandise sales up 7.4%.
Digital sales were up 117% to £5.8 billion, nearly 40% of total sales. Groceries online sales were up 102%.
However, Sainsbury’s also reported a £137 million loss before tax which it attributed to closures and other strategic and market changes.
Want to read more news like this? Simply sign up to our daily digest by clicking here. You can also follow @LicensingSource on Twitter and @licensing_source on Instagram.
