Sainsbury’s gives update on next level of strategy
Sainsbury’s has given an update on the next level of its strategy as it looks to build on the success of its Food First strategy launched in November 2020.
The supermarket will be aiming to make further grocery market volume share gains by “bringing more of Sainsbury’s food range to more customers, becoming the first choice for food for more people, and continuing to attract more bigger basket primary shoppers”.
To do this, Sainsbury’s will focus its investment on around 180 stores that have been identified as having the most potential over the next three years. Work will include creating more space for food by reallocating some space currently occupied by general merchandise and clothing.
The supermarket will also be looking to align its in-store general merchandise and clothing ranges more closely with customers’ grocery shopping missions and ensure that the ranges are ” relevant and irresistible at the right moments”.
Simon Roberts, chief executive of Sainsbury said: “Our Food First strategy has delivered on its promise over the last three years, making Sainsbury’s a stronger business with a much sharper position on value and a major refocus on our innovation. Customers have recognised the progress we’ve made, as our market share gains have shown.
“Our Next Level Sainsbury’s strategy is about giving customers more of what they come to Sainsbury’s for – outstanding value, unbeatable quality food and great service.
“We’re going to build on what’s driven our success since 2020. We’re determined to be First Choice for Food, ensuring more customers in more of our stores can enjoy more brilliant Sainsbury’s food.
“That means more space for our food offer, while still delivering the general merchandise products customers want from us. That way, not only will we find more ways to delight new and existing customers, we will also continue growing volume market share.”
Other plans include building on the success of its Nectar loyalty platform by offering personalised, rewarding and integrated loyalty and “market-leading” retail media capabilities.
The supermarket will also build on the Argos brand’s strengths in convenience and value by growing frequency and spend through improved range and relevance. With customers visiting Argos on average only three times per year, Sainsbury’s believes there is a significant opportunity to increase awareness of the brand’s proposition and grow the frequency of visits and basket spend.
As part of the strategy, Sainsbury’s will invest further in its technology and infrastructure while delivering another £1 billion of structural cost reduction.
Roberts added: “While I’m proud of the progress we’ve made to date, we’re only just at the beginning of rediscovering quite what this business is capable of. By taking Sainsbury’s to the next level, delivering for customers and colleagues, we will also deliver enhanced returns for shareholders through a share buyback and committing to a progressive dividend.”
The supermarket plans to open around 75 new Sainsbury’s Local convenience stores over the next three years.