Another of the major chains pledges to hand back cash as a growing number of retailers explain why they won’t follow suit
Three of the “big four” chains of supermarkets in the UK have now confirmed their plans to return a total of nearly £1.3bn in COVID-19 aid back into the public purse.
Sainsbury’s had revealed on Thursday morning that it would be discussing with officials how it would hand back an expected £410m; following in the footsteps of its biggest rival Tesco, as well as Morrisons.
The second-largest supermarket chain in the UK has said that it had been discussing such a move since the second national lockdown in England was announced in October. It ended this Wednesday.
The company said that it took the decision because it had benefited from its essential status as a retail business.
This comes after Debenhams is to be wound down following JD Sports pulling out of talks on a rescue takeover, placing 12,000 jobs at risk in a horror week for UK retail. The decision has been taken after a sale process, initiated by administrators after the collapse of the troubled 242-year old department store in April, was officially concluded.
Its statement said: “As a result of this, Sainsbury’s sales and profits have been stronger than originally expected, particularly since the start of the second national lockdown in England and we have therefore taken the decision to forego the business rates relief on all Sainsbury’s stores.”
This leaves Asda as the only current member of the big four supermarkets to confirm whether it will return its COVID-19 business rates relief, which was granted to all retail businesses, as well as those within the hospitality and leisure sectors in England for 12 months starting in April.
The Co-op has said that it will make a decision early in the new year, citing the high COVID-related costs while the owner of Waitrose, the John Lewis Partnership (JLP), appears to have ruled out the decision by saying that proceeds have been invested the company’s operations.
Chief executive Simon Roberts said: “While we have incurred significant costs in keeping colleagues and customers safe, food and other essential retailers have benefited from being able to open throughout.”
“With regional restrictions likely to remain in place for some time, we believe it is now fair and right to forego the business rates relief that we have been given on all Sainsbury’s stores.”
This comes after Doctors, scientists and the hospitality industry all say that Boris Johnson’s plans for a Christmas bubble is a mistake; for five days between the dates of the 23rd and the 27th of December, people throughout the UK will be able to mix with other families in a Christmas bubble.
He continued by saying:
“We are very mindful that non-essential retailers and many other businesses have been forced to close again in the second lockdown and we hope that this goes some way towards helping them.”
“We continue to urge government to review the business rates system to create more of a level playing field between physical and online retailers.”
