Sainsbury’s is closing its remaining 61 in-store cafes tomorrow in a major blow for shoppers. The UK supermarket announced the closure plans earlier this year but at the time, did not confirm when the cafes would shut.
Sainsbury’s said the majority of its shoppers don’t use its cafes regularly. The grocer has also unveiled plans to shut its remaining patisserie, hot food and pizza counters, and will cut head office jobs over the next few months, resulting in the loss of about 20% of its senior management roles.
At the time, Sainsbury’s said all these changes combined will result in more than 3,000 jobs being cut. Simon Roberts, Sainsbury’s chief executive, said: “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.
“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 warned that tax increases from the October Budget would hit it with an extra £140million in costs, warning that the changes would also lead to higher prices for customers. The rate of National Insurance paid by employers has risen from 13.8% to 15%, while the earnings threshold has been lowered from £9,100 per year to £5,000.
On top of this, minimum wage has also gone up. The minimum wage for workers aged 21 and over has risen from £11.44 an hour to £12.21 an hour, from £8.60 an hour to £10 an hour for those aged 18 to 20, and from £6.40 an hour to £7.55 an hour for under-18s and apprentices.
A Sainsbury’s spokesperson said: “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.
“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 said earlier in January that it would give staff a 5% pay increase in 2025 but the supermarket is also trying to reduce costs by £1billion in the coming years, and in 2024 it cut about 1,500 roles. The job cuts come after Sainsbury’s announced its “biggest ever” Christmas sales period, and said it would make about £1billion in annual profit.
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