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Sainsbury’s has announced its latest strategy ‘Next Level Sainsbury’s’, aiming to build on its Food First Strategy it launches in 2020.
The company has laid out eight commitments which it aims to achieve by March 2027.
These include; having food volume growth ahead of the market, delivering profit leverage from sales growth, having higher customer satisfaction in FY27 vs FY24 and £1bn of cost savings over three years to FY27.
It also includes; more colleague engagement in FY27 than FY24, over £1.6bn retail free cash flow over three years to FY27, delivering its Plan for Better commitments and a higher return on capital employed.
Sainsbury’s capital expenditure will increase to between £800m and £850m per year over the next three years. The supermarket will also make an additional £70m investment in FY 2024/25 in its Smart Charge Electric Vehicle (EV) charging network.
With the updated strategy the company has also revealed four key outcomes it hopes to achieve by 2027. These were deemed as: “first choice for food, loyalty everyone loves, more Argos, more often and save and invest to win”.
The supermarket giant explained ‘first choice for food’ means trying to attract more people to choose Sainsbury’s as the place they come to for good food.
Loyalty refers to the company attempting to build on the success of nectar cards while more Argos refers to the company’s attempts to continue to build the Argos brand after acquiring it in 2016.
Lastly, the company wants to save £1bn in the period by reducing its costs.
Simon Roberts, chief executive of J Sainsbury plc, 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. Thanks to our scale, our brand and our people, we are in a unique position to deliver for customers across Sainsburys, Argos and Nectar.”
