Sainsbury’s will close around 420 standalone Argos stores by March 2024, reducing the total number to around 100, while opening 150 more outlets in its supermarkets.
The supermarket giant said the move comes as Argos sales grew by nearly 11% in the first half of the year, with almost 2m customers “rediscovering” the retailer despite its stores being closed for 12 weeks.
It said: “Building on this success we will accelerate the structural integration of Sainsbury’s and Argos and further simplify the Argos business model, making it more efficient and profitable and improving our customer offer at the same time.”
The retailer will also open 150 to 200 collection points and will build 32 local fulfilment centres that will service its fast-track delivery options.
The company also said it would increase the number of supermarkets and stores it wants to close under its property strategy programme, which was revealed last year.
At the time, Sainsbury’s said 10 to 15 supermarkets and 30 to 40 convenience stores would close over two years. This has increased to 15 to 20 supermarkets and 50 to 60 convenience stores, but it will open 100 convenience stores over the next three years.
The announcement comes as Sainsbury’s posted a £137m loss, which it said was the result of the £438m hit needed to close the Argos stores and other market changes.
It will also slash 3,500 jobs.
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% of our sales were digital this time last year and nearly 40% of our sales are digital today.”
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