Sainsbury’s boss to unveil new cost saving targets

Sainsbury’s boss Simon Roberts is reportedly set to unveil the next phase of its strategy next week which is thought to include a new set of cost saving targets, according to Reuters.

The outlet reported that the chief executive will announce the new strategy on the 7 February in order to finance lower prices and a 9% pay hike for around 120,000 staff worth around £200m.

Reuters also said analysts expect Roberts to reveal growth opportunities and the launch of a share buyback scheme.

Last month Sainsbury’s revealed that its retail sales jumped 6.5% for the 16 weeks ended 6 January 2024.

As a result of this the company has reiterated its expectations of an underlying full-year profit of between £670m and £700m.

Alongside this, the company’s grocery sales were up 9.3% while its Christmas grocery sales were up 8.6%, with stronger volume growth offsetting lower inflation.

At the time Roberts said: “We enter 2024 with strong momentum and next month we will share our updated strategy, building on all we’ve done to put food back at the heart of Sainsbury’s over the last three years. There is a lot to be excited about and we remain absolutely committed to delivering for our customers, colleagues and shareholders.”