Sainsbury’s will carry out 125 major category reviews and invest a further £500 million in price, chief executive Mike Coupe has confirmed.
Speaking today (25 November) at the Sainsbury’s Farming Conference, Coupe gave a business update and outlined the retailer's future strategy.
“Over the next year, we will carry out 125 major category reviews, which will touch around 60 per cent of our food sales,” he said, adding that Taste the Difference ready meals, on-the-go products and the ‘free from’ range are among those that will be reviewed.
Online and convenience continue to be key areas of growth for Sainsbury’s, Coupe said, with online now accounting for seven per cent of weekly sales, and convenience having grown by six per cent during the last half.
“We are looking at other ways of rolling out our convenience channel. For the first time we are franchising our stores through a new partnership with Euro Garages,” he said.
Speaking about the impact of Brexit, Coupe said Sainsbury’s is working with trade bodies to ensure the industry’s views are heard. But he said: “The most critical issues we face have nothing to do with Brexit. We have a huge tax burden from property and skills – we are the sixth-largest tax payer in the UK. Brexit is important but my message to politicians is if you want to help mainstream retailers then there are policies you can change.”
Number one on Sainsbury’s four-point future strategy is to “further enhance the food proposition”, Coupe said, while another states that Sainsbury’s will “continue its cost savings programme and maintain balance sheet strength”. 'We are committed to a further £500 million in price investment over the next three to four years,' he said.
Coupe also focused on speed of delivery as one of the biggest changes in grocery retail. “Today the currency of the market is same-day delivery, or even within the hour delivery, and this puts pressure on our business.
“Five years ago it was inconceivable that a company like Sainsbury’s would see a taxi company as a competitor. Now we have UberEATS in London that is trying to take share of the lunchtime market.”
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