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The price of Covid is high

Sainsbury's buyers are among them

Saintsbury buyers line up

Sainsbury’s fell 26 261 million despite bumper food և Argos sales during the coronavirus epidemic.

The supermarket giant said that on March 6, Covid’s costs to “help keep our partners and customers safe” were “high”.

However, it says it will return the profits next year.

Rival Tesco reported a sharp drop in profits earlier this month after spending around միլիոն 900m on trading during the epidemic.

Sainsbury said he spent 5 485 million on Covid-related costs, including paying for partners who needed protection or needed self-isolation. It has also returned the reduction of business interest rates in its stores in line with competitors.

The supermarket giant also paid for the restructuring costs, including closing 170 independent Argos stores.

Sainsbury’s 26 261 million loss for the year despite similar sales growth of 8.1%.

Online channel:

Argos did particularly well, with total sales up almost 11% as digital sales soared.

However, some Argos stores, not those inside supermarkets, were closed most of the year during the blockade.

Sainsbury’s online sales grew as coronavirus restrictions accelerated online shopping. During the year, the Internet jumped from 8% of food sales to 17%.

The retailer has already begun reorganizing, announcing in March that 1,150 jobs were in jeopardy.

Sainsbury's profit chart

Sainsbury’s profit chart

Emma Simpson, Business Reporter Analysis Box

Emma Simpson, Business Reporter Analysis Box

Despite the big jump in food sales, Sainsbury is nursing at a loss of 261 million pounds.

Supermarkets were among the big winners during the epidemic, but they also had huge costs – Covid-19 – ranging from keeping employees safe, to sick wages that they had to defend.

He also owed 617 million pounds for Sainsbury’s exceptional expenses. Much of this was the result of the closure of hundreds of independent Argos stores as it rebuilt the business.

The nurse says that like her customers, she looks forward to the situation in the coming months.

But what will the new normal look like for our big customers?

It’s not just online, merchants are thinking about the future of work, աշխատանքի how to respond if most of us do not return to the office five days a week.

Sainsbury’s is pushing for more convenience stores and plans to open stores in new neighborhoods. Small town mini-supermarkets, which can be a wise move if we work from home and shop locally.

CEO Simon Roberts praised the staff’s “heroic” efforts to get the business up and running during the epidemic, but added: “The cost of keeping partners and customers safe during an epidemic is high.”

Susanna Streeter, senior investment analyst at Hargreaves Lansdown, says the cost of working through the coronavirus crisis has “severely damaged” most of the supermarket giant.

To keep customers and staff safe, adjust the layout by paying in full to partners who required a shield, all added [to costs] “With ov 485 million spent on Covid-related costs,” he said.

Sainsbury 100 100 million was also spent on higher staff salaries and special recognition fees to colleagues “for their efforts during the crisis,” Ms Stritter added.

Interactive Investor equity analyst Keith Bowman says the results offer “broad optimism” for the future.

«[But] “Intense competition between the sector, including Aldi id Lidl discount retailers, can not be ignored,” he said.

Small store promotion

On Wednesday, Sainsbury announced again that he would open 25 to 30 convenience stores a year for three years.

Mr Roberts said it would boost the coronavirus trend as more people worked from home.

He said there would be “no return” of people working in the office for five days.

“As customers find new ways to work, it will inevitably mean working from home for part of the week,” he said. “We believe that convenience stores will play a big role in the local community.”

Sainsbury’s already has more than 800 convenience stores, those that “emerged as mini-supermarkets during the crisis, with 13% annual sales growth,” he said.

“These hundreds of stores will be in key locations for customers as they work locally,” he added.

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