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Sainsbury’s is set to shutter the last of its 61 in-store cafes today, delivering a significant setback for customers. The UK supermarket giant had previously disclosed plans for closure earlier this year but withheld specific timings for the shutdown.
The company expressed that the majority of its customers infrequently utilised its cafes. Furthermore, Sainsbury’s has rolled out plans to close its remaining patisserie, hot food and pizza counters and intends to slash head office positions over the coming months, poised to trim roughly 20% of its senior management workforce.
At the time of the announcement, Sainsbury’s impelled that all these cumulative adjustments will culminate in upwards of 3,000 job reductions. CEO Simon Roberts conveyed: “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 continued: “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.”
Sainsbury’s has issued a warning that tax hikes from the October Budget will see it facing an additional £140 million in costs, with the retailer cautioning that this will inevitably lead to higher prices for consumers. The employer’s National Insurance rate has been raised from 13.8% to 15%, while the earnings threshold dipped from £9,100 per annum to £5,000, reports the Mirror.
Additionally, the national minimum wage has experienced an increase. For workers aged 21 and over, the minimum wage has jumped from £11.44 to £12.21 per hour, while those aged between 18 to 20 are now entitled to £10 an hour up from £8.60, and under-18s and apprentices have seen their hourly rate go up from £6.40 to £7.55.
A representative from Sainsbury’s announced: “In January, we shared the difficult decision that our remaining Sainsbury’s cafes would be closing and this will take place on April 11. We are sorry for any disappointment this may cause.”
They added, “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.”
Earlier in the year, Sainsbury’s pledged to award its staff a 5% pay rise by 2025. However, the supermarket giant is simultaneously endeavouring to slash costs by £1 billion over the forthcoming years.
In 2024, it undertook the reduction of approximately 1,500 roles. These cutbacks come despite Sainsbury’s reporting its “biggest ever” Christmas sales figures and projecting about £1 billion in annual profits.
Full list of Sainsbury’s cafes closing
- Hereford
- Bognor Regis
- Lincoln
- Pinhoe Road
- Wakefield Marsh Way
- Isle of Wight
- Truro
- Sedlescombe Road
- Durham
- Winterstoke Road
- Harrogate
- Weedon Road
- Monks Cross
- Bury St Edmunds
- Chichester
- Wrexham
- Cannock
- Fosse Park
- Thanet Westwood Cross
- Marshall Lake
- Barnstaple
- Ely
- Hempstead Valley
- Morecambe
- Godalming
- Macclesfield
- Castle Point
- Springfield
- Rustington
- Hedge End
- Waterlooville
- Nantwich
- Scarborough
- Newport
- Denton
- Leek
- Penzance
- Longwater
- Hazel Grove
- Bamber Bridge
- Swadlincote
- Whitchurch Bargates
- Pontypridd
- Emersons Green
- Rugby
- Cheadle
- Pepper Hill – Northfleet
- Torquay
- Kings Lynn Hardwick
- Dewsbury
- Darlington
- Marsh Mills
- Larkfield
- Rhyl
- Keighley
- Stanway
- Talbot Heath
- Bridgemead
- Pontllanfraith
- Warren Heath
- Leicester North
