Sainsbury collapses to £ 261million as Covid costs hit nearly half a billion pounds Business News

Sainsbury’s fell to a loss of £ 261million despite increased sales during the pandemic, with Covid-related costs approaching half a billion pounds.

The UK’s second-largest supermarket chain reported sales up 7.8 percent during the year, through March 6, as online orders more than doubled.

It has seen an 8.3 percent increase in non-food sales, with competitors selling items deemed non-essential being forced to shut down during lockdowns. Argos sales grew 10.9%, including a 68% increase in digital sales.

With fewer car travelers, fuel sales fell 45 percent, offsetting some of the boom in grocery sales.

Sainsbury’s has incurred £ 485million in costs related to the pandemic, including updating its stores to make them secure by Covid.

He has also spent money to restructure his business, a process that has seen 500 head office jobs cut and another 650 employees likely to leave if they cannot be relocated.

Despite the challenges, Sainsbury’s will pay a dividend to shareholders of 7.4p, up from 7.3p a year ago.

Chief Executive Officer Simon Roberts said: “This year’s financial results have been heavily influenced by the pandemic.

“Food and Argos sales are significantly higher, but the cost of protecting colleagues and customers during the pandemic has been high.

“Our direct costs of Covid-19 for the full year amounted to £ 485million, resulting in a 39% drop in underlying profit for a full year.

“We are delighted to propose a full year dividend that is in line with last year’s dividend, protecting shareholders’ income from the full impact of Covid-19 on earnings.”

More about this article: Read More
This notice was published: 2021-04-28 13:45:05