Sainsbury’s is gearing up for the next step in its strategy to win shoppers back from rival supermarkets Aldi and Lidl, with plans to be announced next week.
In a strategy update by Sainsbury’s chief executive Simon Roberts on 7 February, the CEO is expected to lay out new plans to woo customers back from the German-owned discounters, including introducing more competitive prices, reported Reuters.
His announcement is believed to include new targets for cost savings to help fund better prices and a 9% pay hike for 120,000 workers from March worth £200m ($254m).
Other areas analysts and investors predict Roberts to update on include profit growth opportunities such as retail media, and margin guidance. Plans for a share buyback are also expected to be revealed.
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“They have been doing a very good job of improving the efficiency of the business, I would expect to hear more on that,” a Sainsbury’s top 30 shareholder told Reuters.
The news follows in the wake of Roberts’ “Food First” strategy which he launched in 2020, shortly after being appointed as CEO.
Last month the plan, which placed focus on Sainsbury’s core food business, saw the wind down of the supermarket’s banking business.
In 2022 the CEO pledged to “take on Aldi” through a £550m price cut investment over two years in a bid to keep the supermarket’s “more competitive”.
Last year the grocer also demonstrated competitive pricing with the launch of a new loyalty pricing initiative, Nectar Prices as it looked to compete with leading retailer Tesco’s Clubcard scheme.
2 Comments. Leave new
I’d willingly go back, if our Sainsbury’s wasn’t self checkout only, with one harassed worker trying to keep it all running. They need to look at more than price.
I love shopping at sainsbury, the food are of good quality and with nectar discount plus voucher it work out cheaper and better quality food than aldi or lido.abanding aldi and return to sainsbury shopping from now on