Sainsbury’s is planning to further expand its convenience retail estate in 2018, while also adding additional services to customers of its Sainsbury’s Local stores.
Newly-released results show despite a fall in profits, the multiple reported sales growth, especially through its convenience stores where sales rose 8.2% - far outpacing the company’s overall growth rate of 1.6%.
Sainsbury’s said it wants to further expand its convenience retail estate by opening 25 stores in the next year, compared to 18 stores opened in the last year. The chain now has 820 convenience stores.
The retailer said it would also be rolling out Argos and Tu clothing click and collect facilities to 100 Sainsbury’s Local stores, in order to expand its non-grocery brands.
CEO Mike Coupe said Sainsbury’s was "adapting to meet customers’ changing shopping habits". "As a result, we are seeing positive momentum,” he added.
The results also reveal a slight expansion of the supermarket chain’s convenience store franchise trial with Euro Garages, with nine trial stores now open compared to the originally planned six. Sainsbury's hasn't fully committed to a franchise scheme, but its results state that the trial is still ongoing.
Earlier this year, Coupe said: “A franchising model has some attractions to it if we can maintain control of the brand.”
Do it: find out more about Sainsbury’s franchise plans