Sainsbury’s warns 3,500 jobs at risk as supermarket announces in-store and Argos plans

Sainsbury’s today revealed it has fallen into the red as its new chief executive took the axe to thousands of jobs in a major shake-up at the supermarket.

Simon Roberts, who took over from Mike Coupe earlier this year, said the grocer is planning permanently to close its meat, fish and deli counters.

He added that 420 Argos shops will close leaving just 100 standalone branches open by 2024. Sainsbury’s acquired the retailer in a £1.4 billion takeover in 2016. The firm wants to focus on having Argos collection points and stores within its stores.

The moves put a total of 3500 jobs at risk, and one off-costs linked to the restructure have pushed the  retailer into the red. It posted a £137 million pre-tax loss for the 28 weeks to September 19. It made a £9 million profit a year earlier.

But underlying profits of £301 million were ahead of analysts’ expectations.

Sainsbury’s will pay its interim dividend of 3.2p following strong sales in the first half.

Roberts wants to cut food prices, and grow the online and convenience store arms. He said: “Covid-19 has accelerated a number of shifts in our industry.”

First half comparable sales rose 6.9%, with digital sales more than doubling to £5.8 billion, as more people bought online during the pandemic. Roberts pointed to encouraging signs for the festive period, with sales of Christmas trees up nearly 80% on last year, and customers pre-ordering food.