100 Stores to Close, 10 New Ones to Open
- Sainsbury’s plans store estate overhaul
- 100 stores to close, 10 new ones to open
- 70 Argos stores to close, 80 relocated into supermarkets
- 40 convenience stores to shutter, 110 more planned
- Q2 underlying profit before tax expected to reduce by £50m year on year
- Second half of the year to benefit from wage increase and marketing costs normalization
- Total retail sales up 0.1%, like-for-like sales down 0.2%
- Grocery and clothing sales increased, general merchandise decreased
- CEO Mike Coupe: ‘Sales momentum stronger in all areas’
- Argos market share growth in key categories, impacted by promotional activity
- Clothing sales boosted by clearance activity and online growth
Sainsbury’s has announced a store estate overhaul that includes closing over 100 stores while opening and relocating others in an effort to save £500m over the next five years. The company will close 10-15 large supermarkets, open 10 new ones, shutter 70 Argos stores, and relocate another 80 into its supermarkets. Additionally, it plans to close 40 convenience stores but open 110 more. Despite the competitive market and uncertain consumer outlook, Sainsbury’s expects full-year 2019/20 underlying profit before tax in line with consensus expectations. The company’s Q2 trading update revealed a 0.1% increase in total retail sales and a 0.2% decrease in like-for-like sales. Grocery and clothing sales increased by 0.6% and 3.3%, respectively, while general merchandise sales decreased by 2%. CEO Mike Coupe highlighted stronger sales momentum across all areas due to reduced prices on everyday food and grocery products, expanded value brands, and improved supermarket services.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Sainsbury’s store changes, profit expectations, and sales performance across different categories. It includes quotes from the CEO to support the claims made. The information is relevant and not exaggerated or sensationalized.
Noise Level: 3
Noise Justification: The article provides relevant information about Sainsbury’s store changes and financial performance, including specific numbers of stores closing and opening, as well as profit projections. It also includes quotes from the CEO explaining the reasoning behind these decisions and the company’s overall strategy. The article stays on topic and supports its claims with data such as sales figures.
Financial Relevance: Yes
Financial Markets Impacted: Sainsbury’s stock price, competitors’ stocks
Financial Rating Justification: The article discusses Sainsbury’s store closures and openings, impacting its financial performance and profitability. This information could affect the company’s stock price as well as those of its competitors in the market.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event happened in the last 48 hours
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