Supermarket earnings dip but Argos merger buoys profits in “pivotal year” for the supermarket
Sainsbury’s has seen profits before tax drop 8.2 per cent for its last financial year, down to £503m from last year’s £548m.
But the balance sheet looks far brighter when the results for Argos and Habitat, which the Big Four supermarket acquired for £1.4bn last year, are added into the equation. Full-year group profit for Sainsbury’s Argos increased 12.7 per cent.
Combining operational costs between Sainsbury’s and Argos saw cost savings of £130m, with profit contribution from the omnichannel, cross-category retailer of £77m.
Sainsbury’s chief Mike Coupe said it had been a “pivotal year” for the supermarket.
“We are pleased with the progress made since we acquired Argos. We have opened 59 Argos Digital stores in Sainsbury’s supermarket and they are performing well,” he added.
The Sainsbury’s boss also announced plans to accelerate its rollout plans for Argos Digital stores, another 250 of which are on the way.