UK retailer Sainsbury’s has published its ‘Next Level’ strategy, which it said builds on the ‘Food First’ strategy launched in 2020.
According to the retailer, the strategy will deliver further grocery market volume share gains by “bringing more of Sainsbury’s food range to more customers”, as well as continuing to improve its Nectar loyalty scheme and investing in infrastructure.
Sainsbury’s said that it was making eight commitments that the strategy would deliver by March 2027:
- Food volume growth ahead of the market
- Customer satisfaction higher FY27 vs FY24
- Colleague engagement higher FY27 vs FY24
- Deliver on its ‘Plan for Better’ commitments
- Deliver profit leverage from sales growth
- £1 billion of cost savings over three years to FY27
- Over £1.6 billion retail free cash flow over three years to FY27
- Higher return on capital employed.
The retailer also said that it planned on “unlocking” a further £1 billion of operating cost savings over the next three years, as well as extending its product range in some areas and opening a projected 75 new Sainsbury’s Local stores.
Simon Roberts, chief executive of Sainsbury’s, 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.
“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.
“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.”