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DUBLIN (Reuters) – British supermarket group Sainsbury’s (SBRY.L) said on Thursday that its Argos grocery business would exit the Irish market, losing 580 jobs and closing 34 stores.
The group said it intended to close all Argos stores and operations in Ireland at the end of June.
Sainsbury’s acquired Argos, a company selling toys, technology and appliances, for £1.1 billion ($1.4 billion) in 2016.
In the UK, the company’s strategy was to close most independent Argos stores while opening stores inside Sainsbury supermarkets. However, the group does not have a supermarket in Ireland.
“Argos has concluded that the investment required to develop and modernize the Irish part of the business is not viable and that the funds would be better spent in other parts of the business.
A Sainsbury’s spokeswoman said Argos’ departure from Ireland had nothing to do with Brexit.
Sainsbury’s said there were no changes to Argos in Northern Ireland, Scotland, England and Wales, where 253 independent sites and 422 stores within Sainsbury’s supermarkets were doing well.
The group said Argos workers in Ireland would benefit from an enhanced redundancy package that goes beyond their statutory obligations.
The Mandate union expressed its disappointment at Sainsbury’s decision.
Last week, Sainsbury’s, whose shares were down 18% from last year, reported better-than-expected Christmas trading.
Reporting by Conor Humphries, Dublin and James Davey, London; Editing by William James and Paul Sandle
Our standards: Thomson Reuters Trust Principles.
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