Sainsbury’s to close 20 Argos stores on the high street
Sainsbury’s to close 20 Argos stores on the high street
PA
Sainsbury's is set to close 20 standalone Argos stores in the next financial year.
The supermarket chain bought Argos in 2016 in a bid to grow their sales, increase their delivery networks and also be able to sell products to each other's customers.
Almost 10 years later, the supermarket giants have started to close standalone stores as demand for products decreases.
Their latest financial update confirmed sales at the catalogue retailer fell 6.2 per cent in the 16 weeks to June 22 due to weaker demand for consumer electronics and gaming products
Earlier this year, Sainsbury's announced plans to shut between 15 to 20 standalone Argos store, and now they have confirmed plans to close up to 20 more standalone.
Despite the closure of standalone closures, Sainsbury's will increase the number of inhouse Argos stores.
Sainsbury's acquired Argos in 2016PAArgos' owner confirmed the news of a further 15 to 20 closures when it published its annual report earlier this year.
It said at the time: "In total, for 2024/25, we expect to open three supermarkets and around 25 new convenience stores, with four supermarkets and three to five convenience stores to close.
"In addition, we expect to open around ten Argos stores inside Sainsbury’s and close around 15-20 Argos stand-alone stores."
Since March 2023, Sainsbury's has reduced the number of standalone Argos stores by 72, down to 213 from 385.
However, it has increased the number of Argos stores within Sainsbury's supermarkets by 22 - from 424 to 446.
Argos's owner added: "We expect the stand-alone Argos store estate will reduce to around 190 stores by March 2025 and we expect to have 450–460 Argos stores inside Sainsbury's supermarkets as well as 480–500 collection points."
Sainsbury has maintained its profit outlook despite a slowdown in sales in the first quarter, weighed down by weaker trading in its Argos division.
The supermarket is continued to expect to deliver underlying operating profit of between £1.01billion and £1.06bn in the year ahead, an increase of between five per cent and 10 per cent compared to last year.
On a total basis, sales increased by 4.2 per cent in the 16 weeks to June 22. Sales had risen by 6.5 per cent in the prior month.
Simon Roberts, chief executive of Sainsbury’s, said: “We are pleased with our market-beating grocery performance.
"We’ve been winning from competitors every month for 15 months, as more and more people are choosing Sainsbury’s for their big weekly shop.
LATEST DEVELOPMENTS:
On a total basis, Sainsbury's sales increased by 4.2 per cent in the 16 weeks to June 22
GETTY"We are laser focused on delivering the best combination of value and quality in the market and our customers are recognising that with 98 per cent of big baskets including Nectar Prices or Aldi Price Match.”
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