Massive grocery chain closing 61 key businesses immediately
The large retail giant is contracting a key part of its business.
It's a pretty tough time to operate any kind of retail business right now.
Brick and mortar operations, for example, struggle with dwindling foot traffic as more shoppers choose to make their purchases online.
Related: Bankrupt retail chain suddenly closing all stores
Online businesses struggle with supply chains and keeping their inventory up to date as demand contracts and expands with a volatile market.
Smaller operations find a hard time competing against larger corporate incumbents, who have far more cash and brand power.
And large operations struggle with notoriously razor thin margins, as keeping lots of SKUs means taking on liability for potentially little upside.
Such is the chaotic landscape for the retail industry. Nobody's really a clear winner, particularly in the grocery space. 
Grocery has always been a hard business
Operating a grocery store has always been a challenge.
Customers are price-sensitive and don't tend to be very brand loyal. Which means they'll leave a store in search of better prices if they perceive they're not getting a good deal.
This means supermarkets must constantly compete to undercut each other, which in turn results in lower margins.
More closings:
- Iconic retail chain closing nearly 500 stores
- Another discount retailer closing over 1,000 stores
- Another struggling mall retail chain closing more stores
The typical grocery store only gets between 1-3% profit margins, and that's on a good day.
In addition, grocery stores have to carry a lot of inventory to attract a wide base of customers. Some prefer organic ingredients, while others buy private labels. Some prefer national brands or indulgent and fresh bakery goods. It's a constant game of trying to please everyone -- and can be incredibly costly.
Top supermarket closing 61 key operations
So it's no surprise when a supermarket chain makes the tough decision to close one aspect of its business.
In the case of Sainsbury's, one the U.K.'s top grocery chains, one key business getting cut is its cafes.
Sainsbury's will shutter 61 of its cafe's, which it claims were underutilized by patrons.
Related: Another discount retailer closing over 1,000 stores
It announced it also plans to close its patisserie, hot food and pizza counters, plus lay off some of its corporate workforce in the near future.
The changes are expected to affect about 20% of senior management postings.
Sainsbury's announced all 61 cafe locations are due to close on April 11, 2025.
"In January, we shared the difficult decision that our remaining Sainsbury's cafes would be closing and this will take place on April 11. We are sorry for any disappointment this may cause," the company said in a statement.
