Sainsbury’s ramps up convenience expansion in shake-up of estate
UK retailer Sainsbury’s is ramping up its expansion of conveince stores as part of major shake-up that aims to save around £500 million in the next five years.
It announced today it will open around 110 new convenience stores and 10 new larger stores, in a shake-up that will also see the closure of up to 15 larger supermarkets and 40 of its current convenience sites. It is also shutting up to 70 Argos stores, with around 80 new Argos stores opening inside Sainsburys’ stores.
The changes are expected to deliver an ongoing net operating profit benefit of around .£20m per year, it said, with one-off cost of closures and impairments of £230 million – £270 milllion, or cash cost of £30 million to £40million.
It comes as the retailer announced a slight improvement in its second quarter sales, with a 0.2% fall in like-for-like sales over the 12 weeks to 21 September and frocery sales up 0.6%.