In reaction to falling sales and changing consumer habits, Sainsbury’s looks set to downsize its food space in shops in favour of non-food space and in-store concessions.
The retailer has designated around 1.5 sq metres of store spaces across the UK for conversion to non-food space, that amounts to the space of approximately 40 Sainsbury’s stores.
Sainsbury's CFO John Rogers announced the proposed changes yesterday arguing that the the new non-food space is not needed anymore as food space due to strong competition from discounters and convenience stores and online delivery services.
Sainsbury’s is currently negotiating with different companies about subletting space, with the UK Telegraph reporting that deals for subletting already been agreed on with Argos and Jessops.
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