Sainsbury’s to rejig store estate

Sainsbury’s is to close around 10-15 of its supermarkets following a review of its portfolio. It will also close 60-70 Argos shops and 30-40 convenience stores. However, these will be offset by 10 new supermarkets, 80 Argos concessions in its stores and 110 new convenience stores. Sainsbury’s said the closures will deliver a net operating profit benefit of circa £20m per year. This would be after a one-off cost of closures and impairments of between £230m and £270m, of which the cash cost will amount to £30m to £40m. The news comes as Sainsbury’s warns that underlying profit for the six months to 21 September will fall. It blamed unseasonal weather and higher marketing costs for a forecasted £50m fall year-on-year. The grocery chain posted a 0.2% drop in like-for-like sales for the 12 weeks to 21 September. Chief executive Mike Coupe said: “We have focused on reducing prices on every day food and grocery products and expanding our range of value brands, which have been very popular with customers. At the same time, we are investing significantly in our supermarkets, driving consistent improvements to service and availability.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette