Sainsbury's has announced that it will close its remaining 61 in-store cafés, with the final day of trading scheduled for Friday, April 11. This decision marks a significant change in the supermarket's dining offerings and was initially revealed in January as part of a larger strategy to streamline operations amid financial challenges.
Two of the affected cafés are located in North Wales, specifically in Wrexham and Rhyl. According to a spokesperson for Sainsbury's, “In January, we shared the difficult decision that our remaining Sainsbury's cafés would be closing and this will take place on April 11. We are sorry for any disappointment this may cause.” The company has assured customers that it continues to support local communities through various initiatives, including fundraising and volunteering, and they are currently exploring opportunities for the café spaces after their closure.
The closures come in response to decreased foot traffic in the cafés, alongside a growing preference among shoppers for hybrid cafés and food halls. It is anticipated that the spaces vacated by the cafés will potentially be transformed into outlets operated by franchises, such as Starbucks and Gourmet Burger Kitchen.
This move is part of a broader strategy outlined by Sainsbury's at the beginning of the year, which includes the discontinuation of all remaining patisserie, bakery, rotisserie, and pizza counters in larger stores. Popular items from these sections are set to be relocated to shop shelves, and modifications such as self-service bread-slicing machines will be introduced to enhance the shopping experience. Rotisserie chickens are also scheduled to be found in hot cabinets near sandwich fridges, a shift intended to streamline operations.
In January, Sainsbury's announced it would cut more than 3,000 jobs, equating to roughly 2% of its workforce of 148,000, as part of efforts to simplify the business in light of a challenging economic landscape. Senior management roles are also being reduced by around 20% as part of this restructuring. The company is targeting cost reductions of £1 billion over the next few years.
Sainsbury's chief executive, Simon Roberts, spoke about the challenging environment, stating, “As we accelerate into year two and beyond of our strategy, we are facing into a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.” He noted that while these decisions are necessary for maintaining the company's momentum, they also impact dedicated colleagues.
The café closures and job cuts come despite Sainsbury's reporting its “biggest ever” Christmas sales period, with anticipated profits reaching £1 billion. A Downing Street spokesperson remarked that the “difficult decisions” made in recent budgets were aimed at fostering long-term economic growth.
The full list of Sainsbury's cafés slated for closure includes locations across the UK, with notable mentions including Fosse Park, Wrexham, Rhyl, and several others throughout England and Wales. The Unite and Usdaw unions, representing thousands of Sainsbury's employees, have voiced concerns regarding job losses, attributing them to corporate strategies focused on profits despite the financial challenges. As part of their response, Usdaw is committed to assisting affected members during this transition.
In addition to job cuts, Sainsbury's has announced a 5% pay increase for staff in 2025, highlighting their intent to support workers amidst the current cost inflation environment. However, pressures from increased national insurance contributions and adjustments to minimum wage thresholds continue to contribute to financial strains within the retail sector.
Source: Noah Wire Services