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Home » Our strategy | Sainsbury’s
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Our strategy | Sainsbury’s

adminBy adminApril 25, 2024No Comments4 Mins Read136 Views
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Next Level Sainsbury’s

In February 2024, we set out our Next Level Sainsbury’s strategy, driven by our new purpose: to make good food joyful, accessible and affordable for everyone, every day.

Focusing on four key outcomes, our strategy is designed to give customers more of what they come to Sainsbury’s for: outstanding value, unbeatable quality food and great service.

Our Plan for Better is fully integrated through the way we operate as a business to deliver commercial and sustainability outcomes.

module-plain-copy-module

Food

First choice for food will take Sainsbury’s to the next level

Our update strategy builds on what’s driven our success since 2020. We’re determined to be First choice for food, that means more space for our food offer, while still delivering the general merchandise products customers want from us; and playing a leading role creating a more resilient UK food system.

Launching our updated strategy

Find out more about our plan


image

We’re determined to be First Choice for Food, ensuring more customers in more of our stores can enjoy more brilliant Sainsbury’s food.


First choice for food

Attract many more people to choose Sainsbury’s as the place they come to for good food – and play a leading role in creating a sustainable food system in the UK

  • More food choice for more customers
  • Consistent value, every day
  • The leader in freshness, availability and innovation
  • A complementary range of relevant products and services
  • A more resilient food system

Loyalty everyone loves

Build a world-leading loyalty platform – more personalised, joyful, rewarding and transparent – for everyone

  • Personalised, rewarding and integrated loyalty
  • Joy and connection beyond transactions
  • World-leading Nectar360 capabilities
  • Strong coalition of partners
  • Always transparent use of data

More Argos, more often

Unleash and transform Argos around the three things that have always made it brilliant – curated range, famously convenient experience and great value – so more customers buy more complete baskets more often

  • Famous for convenience
  • Inspiring choice, always great value
  • Supercharged digital capabilities
  • Accessible and relevant credit, care and services
  • Next level service, efficiency and stock flow

Save and invest to win

Save £1 billion and invest in transforming our capabilities – taking another big leap forward in efficiency, productivity and customer focus, continuing to build a platform for growth

  • £1 billion of structural cost reduction
  • Well-invested technology platform protecting, competing and unlocking the next level
  • Simplified, automated, more process-led business
  • Right-sized organisation, set up to win

module-plain-copy-module-commitment

Our Commitments

We are making eight commitments that the strategy will deliver by March 2027:

  • Food volume growth ahead of the market
  • Deliver profit leverage from sales growth
  • Customer satisfaction higher FY27 vs FY24
  • £1bn of cost savings over three years to FY27
  • Colleague engagement higher FY27 vs FY24
  • £1.6bn+ retail free cash flow over three years to FY27
  • Deliver our Plan for Better commitments
  • Higher return on capital employed


Creating value for our stakeholders

We create value for stakeholders by building on the heritage and scale of our food business and our strong assets.
Being a sustainable business is vital to our success and we have a clear plan to be Net Zero across our own operations by 2035. This requires fundamental change and we are making good early progress.

Customers

Customers

We listen carefully to our customers, and we invest in what matters to them. Our focus is on offering a broad range of great value, high quality products, strong availability and excellent customer service, all delivered through attractive stores and convenient digital channels.

Colleagues

We invest in our colleagues. By creating an engaged workforce that is invested in the progress of the business and the role they play in our success, we will achieve high retention rates and deliver superior customer service.

Communities

We play an active role in local communities. Our customer feedback programme and customer surveys help shape our community programmes.

Suppliers

We are proud of our strong supplier relationships and we work collaboratively with them to grow our business and theirs. By improving technology and simplifying processes we are making it easier for our suppliers to do business with us.

Shareholders

We are committed to continuing our track record of strong cash generation. This allows us to reinvest in the business and consistently generate free cash flow which accrues to shareholders through consistent dividends and net debt reduction.

Fruit and Veg



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