Sainsbury’s to close 70 Argos stores as profits fall

British supermarket giant Sainsbury’s has announced that it is to close up to 70 of its Argos stores, as it looks to add more of them to its in-store offering.

Sainsbury’s is planning on opening 80 of these in-store shops over the next few years.

The move comes as the UK’s second-largest supermarket chain warned its investors that revenues for the six months to 21st September will fall.

It blamed bad weather and higher marketing costs for the forecast £50m drop on the period last year.

Mike Coupe, Chief Executive Officer os Sainsbury’s, said: “Sales momentum was stronger in all areas and we further improved our performance relative to our competitors, particularly in grocery. We have focused on reducing prices on everyday 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.

 “Argos continued to grow market share in key categories, but sales were impacted by reduced promotional activity and the timing of new product releases in gaming and toys. Clothing sales were boosted by clearance activity and strong online growth and Tu continued to grow market share. Financial Services sales were in line with expectations.”