Sainsbury's introduces its "Next Level Sainsbury's" strategy, which builds on the success of the Food First strategy initiated in November 2020. This strategic approach further elevates shareholder returns by capitalising on market momentum and reinforcing core business operations.
Sainsbury's aims to solidify its leadership position in the grocery market by expanding the accessibility of its food range, targeting increased market share, and attracting larger basket primary shoppers.
The company seeks to enhance its loyalty platform, Nectar, into a world-leading, personalised, and rewarding system integrated with retail media capabilities.
Efforts will be made to optimise Argos by leveraging its convenience and value strengths, improving range and efficiency to drive higher frequency and spending.
Investments will be directed towards enhancing capabilities across technology and infrastructure and achieving £1 billion in structural cost reduction.
By March 2027, Sainsbury's pledges to achieve volume growth exceeding market rates, profit leverage from sales growth, increased customer satisfaction, £1 billion in cost savings, elevated colleague engagement, £1.6 billion+ in retail free cash flow, fulfilment of Plan for Better commitments, and improved return on capital employed.
Retail operating profit growth is anticipated from the outset of the plan, with increased capital expenditure and targeted investments. Expectations include at least £500 million in annual retail free cash flow and implementing a progressive dividend policy.
Simon Roberts emphasised Sainsbury's commitment to becoming the preferred destination for food, leveraging its scale, brand, and workforce to deliver value for customers and shareholders alike.
Sainsbury's will expand its food offerings across stores, emphasising value, freshness, and innovation while investing in supermarket locations and customer service. It will also enhance its Nectar loyalty platform, offering personalised rewards and integrated retail media, fostering strong customer engagement.
Efforts will focus on transforming Argos by enhancing convenience, value, and digital capabilities to increase customer visits and basket sizes. It aims to achieve £1 billion in cost savings while investing in technology, automation, and process optimisation to drive efficiency and growth.
Sainsbury's has reinforced its commitment to delivering exceptional value, quality, and service, with a renewed focus on customer-centric strategies to drive sustainable growth and shareholder returns.
