Sainsbury’s plans to cut costs by £1billion and says 'further to go' with Argos standalone store closures
Sainsbury's intends to expand its food offering
PA
Sainsbury’s has announced plans to create more food space as the supermarket chain aims to cut costs by £1billion over the next three years.
The retailer said it will reduce the general merchandise and clothing ranges across many shops to increase its food offering.
Sainsbury's will also look to close more standalone Argos stores, instead bringing them within supermarkets as click-and-collect points.
The UK’s second-largest supermarket said it has no plans to close stores and is not announcing staff cuts.
Sainsbury's said they have "further to go in terms of Argos store estate changes"
PA
As part of the strategy revamp, called Next Level Sainsbury’s, the retailer aims to focus on technology investments to deliver automation and savings.
Sainsbury’s said: “High-returning investments in technology and automation will drive big steps forward in efficiency – automating, optimising and prioritising high-volume tasks and driving better forecasting.”
The supermarket plans to add to its estate of 800 sites by opening another 75 convenience stores.
It also intends to roll out rapid electric vehicle (EV) charging points to more than 100 stores by the end of its 2024/25 financial year.
Sainsbury’s currently offers this at 20 locations.
Chief executive Simon Roberts said: “We’re determined to be first choice for food, ensuring more customers in more of our stores can enjoy more brilliant Sainsbury’s food.
“That means more space for our food offer, while still delivering the general merchandise products customers want from us.”
The firm has also committed to a “progressive” dividend policy from the start of the next financial year.
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It plans to commence a £200million share buyback programme.
Sainsbury’s said it only offers its full food range at 15 per cent of stores.
The retailer aims to boost the range offered across all of its supermarkets but has earmarked 180 “highest potential” stores to focus its expansion efforts on.
It’s not confirmed how many Argos stores may be affected by the changes over the next three years, but already announced late last year plans to slash the Argos estate to 180 by March.
The group said: “We have further to go in terms of Argos store estate changes and we will also further refine the store operating model, with clustered stores replacing a one-size-fits-all approach.”