Sainsbury’s, the well-known UK supermarket chain, has recently announced its plans to shut down up to 100 more Argos high street stores within the next year as part of its ongoing rationalisation programme. This move is in line with the company’s strategy to transition into a concession format within its supermarket locations.

The first batch of store closures will take place in Cardiff, Newport, Hull, Grimsby, and Scunthorpe, as reported by the Retail Gazette. Earlier this year, Sainsbury’s closed down 37 Argos stores, including all 34 branches in Ireland.

On the other hand, Sainsbury’s has been increasing the number of Argos concessions within its supermarkets. Over the past few months, they have opened 25 new Argos concessions, with plans for an additional 30. Currently, Argos operates around 180 standalone stores, but the retailer aims to have approximately 430-460 counters within Sainsbury’s supermarkets by next year. This includes click & collect counters in smaller stores and full concessions in larger branches.

In the coming month, new Argos stores will be opening inside Sainsbury’s Grimsby and Sainsbury’s Scunthorpe. In pursuit of its rationalisation plan, Sainsbury’s will also be closing all standalone Habitat branches. Additionally, the company has announced its intention to shut down two Argos depots within the next three years.

This strategic decision by Sainsbury’s underscores its commitment to streamlining and optimising its retail operations. By closing down underperforming stores and integrating Argos into its existing supermarket locations, the company aims to enhance efficiency and improve the overall shopping experience for customers.

Although the closure of Argos stores may cause some disruption for employees and customers in the affected areas, Sainsbury’s focus on expanding concessions within its supermarkets presents new growth opportunities and potential job creation. This realignment of strategy is in line with evolving consumer preferences and the growing demand for convenient and online shopping options.

As Sainsbury’s continues with its rationalisation programme, it will be intriguing to see how these changes impact the overall performance and profitability of the company. In an industry undergoing significant transformation, it is essential for retailers to adapt and evolve in order to remain competitive in the market.

Useful links:
1. Retail Gazette’s article on Sainsbury’s closing 100 Argos stores
2. Sainsbury’s official website