Sainsbury’s has dropped a bombshell for shoppers by confirming closure plans for even more standalone Argos stores. On top of the numerous closures already executed, the retail giant is set to shutter an additional nine Argos branches this financial year, though they’ve kept schtum on the exact locations facing the chop.
Since March 2023, the total count of separate Argos outlets has plummeted from 385 to just 213—a hefty drop of 72 stores. Nevertheless, Sainsbury’s isn’t putting all its eggs in one basket; it’s pushing forward with the roll-out of Argos shops and pick-up points inside its supermarkets, boosting the number from 424 to 446.
In the spotlight are plans to cut the ribbon on 13 shiny new Argos concessions within Sainsbury’s stores this year. But it’s not just about store openings; from March to September 2024, Sainsbury’s axed six Argos solo stores plus a couple of collection counters within their own stores, albeit balancing things out with the introduction of three brand-spanking-new Argos stores and eight collection points tucked into Sainsbury’s branches.
Chiming in on the shifting retail landscape, an Argos spokesperson said: “The transformation of our Argos store and distribution network has been progressing at pace for several years now, improving availability, convenience and service for customers. As part of this, we are continuing to open new Argos stores and collection points in many of our Sainsbury’s supermarkets, enabling customers to purchase thousands of technology, home and toy products from Argos while picking up their groceries.”
The boss of Sainsbury’s has dropped a bombshell, revealing the supermarket giant is bracing for a £140million hike in costs following the Budget announcements. Chancellor Rachel Reeves’ decision to up employer National Insurance contributions and the minimum wage has left Simon Roberts talking about an “unexpected barrage of costs” that will inevitably pump up inflation for shoppers, reports the Mirror.
Despite this financial headache, Sainsbury’s is still understood to be doing well – they’ve seen group revenues climb by 2.3% to a hefty £17.2billion for the 28 weeks leading up to September 14, outpacing last year’s figures. Retail sales, fuel aside, have risen by 3.4%, with a notable 4.2% surge in the latest quarter.
Argos, on the other hand, has had a bit of a wobble, with sales dipping by 5% over the half-year, although the decline did slow down to 1.4% in the second quarter after a 7.7% drop initially. Mr Roberts said: “Our food business is going from strength to strength and we’re making the biggest market share gains in the industry, with continued strong volume growth.”
He added, “More and more customers are coming to us for their big food shop, recognising our winning combination of value, quality and service. As we head into the festive season, there is real energy and excitement at Sainsbury’s and Argos and we’re expecting another strong performance.”