Sainsbury's has announced that it will close 61 of its in-store cafes on Friday, April 11, signalling a significant shift in the supermarket chain's dining offerings. This decision was initially revealed in January, citing a need to address declining customer footfall in the cafes while redirecting focus to more popular hybrid food halls and concessions managed by specialist partners. Among the cafes set to close are locations in Wrexham and Rhyl, both of which are situated in North Wales.
A spokesperson for Sainsbury's expressed regret for the disappointment caused by the cafe closures, stating, "In January, we shared the difficult decision that our remaining Sainsbury's cafes would be closing and this will take place on April 11. Our stores continue to support the customers and communities they serve in a range of ways, including through fundraising, volunteering and donations to good causes. We're exploring future opportunities for the space and will keep our colleagues and customers updated."
Sainsbury's chief executive, Simon Roberts, has stated that the closures form part of a broader strategy to simplify operations and reduce costs amid what he described as a “particularly challenging cost environment.” The retailer aims to save £1 billion annually, a move that will also involve the elimination of other in-store offerings, including bakery, rotisserie, and pizza counters, which will see their most popular items moved to shelves instead. Notably, hot cabinets will replace rotisserie counters for chickens, offering a new method of service for these items.
The impending changes will result in approximately 3,000 job losses, affecting about 2% of Sainsbury's 148,000 employees. This workforce reduction includes a planned 20% cut of senior management roles in the coming months. Following the announcements, a Downing Street spokesperson mentioned that "difficult decisions" in the Budget would assist in fostering economic growth. The changes are also associated with a rise in national insurance contributions and adjustments to minimum wage regulations, further impacting operational costs.
Despite the significant downsizing, Sainsbury's has indicated plans to replace the closed cafes with franchise outlets like Starbucks and Gourmet Burger Kitchen. Roberts has assured that the decisions are critical to maintaining the supermarket's momentum, acknowledging the impact on dedicated staff. He stated, "The decisions we are announcing today are essential to ensure we continue to drive forward our momentum but have also meant some difficult choices impacting our dedicated colleagues in a number of parts of our business. We’ll be doing everything we can to support anyone impacted by today’s announcements."
Amid these cost-saving measures, Sainsbury's recently reported a successful Christmas sales period, marking its "biggest ever" results, with profits projected to reach around £1 billion. The announcements regarding job cuts and service alterations have sparked various responses from union representatives, highlighting concerns regarding corporate decisions and the well-being of affected employees.
As April 11 approaches, Sainsbury's has released a full list of the cafes slated for closure, encompassing locations nationwide, including Fosse Park, Pontypridd, and Scarborough, among others. Each closure reflects a pivotal moment in Sainsbury's ongoing strategy to adapt to changing consumer behaviours and financial pressures in the retail sector.
Source: Noah Wire Services