Sainsbury’s to shed 3,500 jobs

Sainsbury’s is to cut 3,500 jobs, mainly from it’s Argos chain, it was announced this morning.

The retailer plans to close more than 400 standalone Argos stores by March 2024, although it says it will open 150 more Argos outlets in Sainsbury’s stores. Jobs will also go in the supermarkets, however, with the closure of delicatessen and fresh fish and meat counters.

Simon Roberts, Chief Executive of J Sainsbury plc said: “As we go into lockdown in England for the second time this year and restrictions are in place across the UK, we know our customers and colleagues are feeling anxious and we will do all we can to support them.

“Our colleagues have done an exceptional job going above and beyond for our customers every day which is why we are giving our frontline colleagues a second 10 per cent thank you payment.

“Above all else today, I want to express my heartfelt thanks to every one of my colleagues in our stores, in our depots, and across our store support centres for all your hard work and for your outstanding team effort.

“We also want to support our communities and those in need and are creating a £5 million community fund for local charities and good causes, in addition to the £7 million we donated to Fareshare and Comic Relief earlier this year. We want to do our bit to ensure that no one goes hungry at Christmas and to support those most in need.

“COVID-19 has accelerated a number of shifts in our industry. Investments over recent years in digital and technology have laid the foundations for us to flex and adapt quickly as customers needed to shop differently. Around 19 per cent of our sales were digital this time last year and nearly 40 per cent of our sales are digital today.

“While we are working hard to help feed the nation through the pandemic, we have also spent time thinking about how we deliver for our customers and our shareholders over the longer term.

“We will put food back at the heart of Sainsbury’s. We are already working to make this happen – we have lowered prices on over 1,500 every day grocery products over the past few months and we will do more of this, focusing on the staple products that our customers buy every day.

“We know that customers are feeling the pinch and we want them to feel confident they will get always get great value, quality and service from Sainsbury’s. We will focus on accelerating product innovation and will bring new and exclusive products to our customers much more often.

“To support our ambition in food, we are accelerating our ambition to structurally reduce our cost base right across the business so we can invest faster back into our core food offer.

“Our other brands – Argos, Habitat, Tu, Nectar and Sainsbury’s Bank – must deliver for their customers and for our shareholders in their own right.

“Argos sales have been strong over the past six months and we have gained almost two million new customers as people have re-connected with Argos. Over the next three years we will make Argos a simpler, more efficient and more profitable business while still offering customers great convenience and value and improving availability.

“We will also make Habitat more widely available in Sainsbury’s and Argos, giving customers access to stylish home and furniture products at more affordable prices. 

“We are talking to colleagues today about where the changes we are announcing in Argos standalone stores and food counters impact their roles. We will work really hard to find alternative roles for as many of these colleagues as possible and expect to be able to offer alternative roles for the majority of impacted colleagues.

“Given the unprecedented circumstances of this year and the challenges facing our colleagues, including the changes we are announcing today, I have informed the Board that if a bonus is payable, I will waive any bonus entitlement for this financial year.

“We are raising our ambitions. By delivering improvements in value and quality and simplifying this business, we will do a better job for our customers and deliver an improved financial performance and stronger shareholder returns.

“Right here and now I and all the team are focused on supporting and delivering for our customers in the days and weeks ahead.” 

Unite the union has called on Sainsbury’s to redeploy its 500 members whose jobs on deli, fish and meat counters are under threat, following today’s announcement by the supermarket giant that it is cutting 3,500 jobs.

Unite said that it was ‘deeply disappointed’ by the news affecting its members working on these counters which have been closed since the first lockdown in March and called for urgent talks to explore redeployment opportunities within Sainsbury’s supermarkets.

It is understood that the redundancy notices for the counter staff will be issued in March next year and come into effect in May 2021.

Unite national officer for the food industry Bev Clarkson said: “This is very disappointing news for our 500 members working on the deli, fish and meat counters.

“We are seeking urgent talks with the management to explore deployment opportunities within Sainsbury’s, given the supermarket’s sales have risen since the first lockdown in March.

“Hopefully, the supermarket can reopen some of these counters, closed since March, once the Covid-19 restrictions are eased and a vaccine comes on stream.

“Sainsbury’s needs to engage more constructively with Unite going forward as this news came ‘out of the blue’ without the detailed consultations we would expect from such an established and well-known company.

“This is very grim news for our members and their families in the run-up to Christmas, and we will be giving them maximum support during this worrying and uncertain time.”