Sainsbury’s Argos purchase to create over 1,000 jobs 
Sainsbury's has said that it will create over 1,000 shop staff jobs over the next three years, following its £1.4bn purchase of Argos. Chief executive Mike Coupe said the plan would go ahead in spite of Britain's recent Brexit vote. The retailer is looking to exploit Argos' online and delivery expertise to drive sales and will open more Argos concessions within its stores. More than 200 Argos shops will close as a result of the takeover, together with up to 600 head office and back office roles, but the deal's prospectus says 1,000 new shop floor positions will be created. The combined company will be larger than the clothing and general merchandise businesses of Tesco, John Lewis and Marks & Spencer, selling 100,000 products from 2,000 stores.

Sainsbury’s has promised to create more than 1,000 shop staff jobs in the next three years after its £1.4bn purchase of Argos – despite roles in head office being put at risk.

The supermarket yesterday published a 188-page prospectus for the deal and said that despite Brexit it would push ahead with the plan.

Sainsbury’s chief executive Mike Coupe said he remained ‘absolutely convinced by the strategic rationale of the deal, regardless of what economic conditions prevail’. But he warned: ‘There is a danger that we’ll talk ourselves into a crisis.’

Sign of the times:Sainsbury’s chief executive Mike Coupe said he remained ‘absolutely convinced by the strategic rationale of the Argos deal

The prospectus said the fees paid to advisers and bankers totalled nearly £50m. This included up to £6.3m paid by Sainsbury’s for legal fees, £2m for public relations paid by Home Retail Group and £25.8m for both sides’ banking and corporate broking advice.

Sainsbury’s hopes to use Argos’ online and delivery skills to boost sales and will open further Argos concessions in its supermarkets.

It is expected to eventually close more than 200 Argos shops but its prospectus to the City yesterday detailed plans to create 1,000 new jobs on the shop floor.

The £1.4bn takeover will mean up to 600 jobs in head office and back office functions will be lost. Argos’ parent Home Retail Group’s head office is in Milton Keynes, Buckinghamshire, while Sainsbury’s is in London.

Sainsbury’s finance boss John Rogers will take over running its non-food business with Argos, and will be based in Milton Keynes but remain a member of the Sainsbury’s group operating board and the J Sainsbury Plc Board. Ed Barker, Sainsbury’s director of group finance, will be appointed chief financial officer of Sainsbury’s on an interim basis, replacing Rogers.

The company is in consultation with those at risk of redundancy.

The combined Sainsbury’s and Argos business will sell 100,000 products from 2,000 stores and will be bigger than the clothing and general merchandise businesses of Tesco, John Lewis and Marks & Spencer.