Shops will be replaced with outlets inside Sainsbury’s supermarkets as part of reorganisation.
Sainsbury’s is to close up to 70 Argos stores as part of a reorganisation, replacing them with outlets inside its supermarkets.
The store portfolio reorganisation will also see the closure of up to 15 supermarkets and 40 convenience stores.
However, Sainsbury’s will open ten new supermarkets, while over 100 new convenience stores are planned. 80 new Argos outlets will be opened inside supermarkets.
The news comes as Sainsbury’s said it was aiming to reduce costs by £500m over five years and cut debts by £750m as a result of reorganising its store estate.
For the 12 weeks to September 21, it said general merchandise sales declined by 2.0%, while clothing increased by 3.3%.
However, it said pretax profits in the first half of its financial year would be £50m lower, partly because of unseasonable weather and higher marketing costs.
Commenting on second quarter trading, Mike Coupe, ceo, said: “Argos continued to grow market share in key categories, but sales were impacted by reduced promotional activity and the timing of new product releases in gaming and toys. Clothing sales were boosted by clearance activity and strong online growth and Tu continued to grow market share.”
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