Proactive Investors - J Sainsbury PLC (LON:SBRY) will take over and convert Homebase stores into its own supermarkets under a £130 million expansion plan.
As part of a deal with the DIY retailer, Sainsbury’s will buy 10 shops and convert these into its own sites for Christmas next year.
Some 1,000 jobs are expected to be created under the move, with Sainsbury’s set to offer interviews for at-risk Homebase staff.
Chief executive Simon Roberts commented: “Sainsbury’s food business continues to go from strength to strength.
“We want to build on this momentum which is why we are growing our supermarket footprint.”
The FTSE 100-listed supermarket also reiterated cash flow guidance for £500 million in the current financial year, alongside £1.6 billion in the three years to 2027.
“The addition of new locations means nearly 400,000 more people will be within a 10-minute drive of a Sainsbury’s supermarket,” the chain added.
“The new stores will showcase Sainsbury’s latest food offer with a refreshed, innovative look and feel.”
Shares climbed 0.6% to 290.57p.