Sainsburys announces new £1bn cost-cutting investment plan

Sainsbury’s has launched its “Next Level Strategy” to build on the Food First Strategy it launched in November 2020.

The new strategy aims to make Sainsbury’s the first choice for food shoppers and reduce costs by £1 billion by investing in technology and infrastructure.

Additionally, the supermarket chain said it will continue to develop its Nectar loyalty platform and build on Argos' strengths in “convenience and value.”

Under the new strategy, Sainsburys expects capital expenditure to increase to between £800 million and £850 million per year over the next three years. The company will also invest an additional £70 million investment in its electric vehicle charging network.

Sainsburys said it does not offer its full range to customers in enough locations, with only 15 per cent of stores offering the full food range.

The supermarket retailer added that this impacts online range and perceptions of availability as online grocery orders are picked from stores.

To improve its offering, Sainsbury’s will focus investment on around 180 stores that have been identified as having the most potential over the next three years and reallocate space currently occupied by general merchandise.

It will also open around 75 new local convenience stories and offer a wider range of food on the move.

“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,” said Simon Robers, chief executive of J Sainsbury plc. “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.”

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