Sainsbury’s

Sector: Food, drug and mass retailers Countries of operation: UK Key product categories: Apparel and accessories, food and beverage, fuel, general merchandise, and health and beauty Annual Metrics [caption id="attachment_151422" align="aligncenter" width="700"] Latest fiscal year ended on March 5, 2022
*Excluding VAT
**Excluding fuel [/caption]   Summary Sainsbury’s was founded in 1869 and is headquartered in London, England. The company sells clothing, general merchandise and groceries and operates retail outlets of various formats, including supermarkets and convenience stores, under the Argos, Habitat and Sainsbury’s banners. Sainsbury’s also provides various financial services including credit card insurance, loans and travel money. The company operates a property development business, which has entered joint ventures with British Land Company and Land Securities Group. As of March 5, 2022, the company operates 598 supermarkets and 809 convenience stores across the UK and Republic of Ireland. Company Analysis Coresight Research insight: Sainsbury’s is one of the UK’s leading supermarket chains and is classed as one of the “Big Four” grocers in the country. While the company has historically distinguished itself from its rivals through upscale product positioning, it has been underperforming relative to other supermarket chains due to a lack of responsiveness to an increasingly value-oriented UK consumer base. We expect the company to invest excess cost savings back into the business through price investments, narrow the price gaps versus its competitors and regain momentum among the ‘Big Four’ grocers, especially against the backdrop of the growth of discounters and high inflation. The company’s latest Price Lock commitment, which covers over 2,000 everyday products, and its Aldi Price Match scheme will be central to enhancing its superior value perception versus its competitors.

Tailwinds	Headwinds
Diversified business reducing the company’s reliance on the core grocery retail sector Consistently higher quality perception than its Big Four peers Increasing footprint of new convenience stores and Neighborhood Hub format stores from 2020 through 2023	Large price gap relative to discounters such as Aldi and Lidl; the company is the least price-competitive operator among the Big Four High exposure to convenience segment in urban areas, which leaves it vulnerable to the growth of instant grocery delivery startups

  Strategy Sainsbury’s aims to improve its financial performance and deliver stronger shareholder returns by focusing on the following four key areas: 1. Place food first

• Build on Sainsbury’s strong brand heritage and reputation to offer customers more consistent value, while making shopping more convenient.

2. Focus on brands that deliver Refocus on its brand portfolio to ensure the company drives sustainable and profitable growth to support its core food business. 3. Save to invest

• Accelerate cost-saving plans by simplifying its organization and structurally reducing its operating cost base.
• Reinvest the saved costs to improve its food offerings and meet the needs of customers shopping across a broad range of channels.

4. Plan for Better

• Commit £1 billion ($1.4 billion) to reduce carbon emissions within its operations and increase the use of renewable energy to become a net zero business by 2035.

Revenue Breakdown (FY22)   Company Developments

Date	Development
May 30, 2022	Sainsbury’s announces that it has injected £500 million ($632 million) in price investments since March 2021 to help customers manage inflation.
March 17, 2022	Sainsbury’s opens a new 1,938 sq.ft Sainsbury’s Local store on Hampstead High Street in London.
November 29, 2021	Sainsbury’s introduces checkout free shopping innovation SmartShop Pick & Go at Holborn Circus convenience store using Amazon’s ‘Just Walk Out’ technology.
September 13, 2021	Sainsbury’s announces that it will keep all its stores including supermarkets, convenience stores and petrol stations shut on Boxing Day.
May 5, 2021	Sainsbury’s announces that Paula Nickolds, formerly Managing Director of John Lewis, will join the company as General Merchandise and Clothing Commercial Director in June.
March 26, 2021	Sainsbury’s announces that it will eliminate 18.5 million plastic straws from circulation every year as part of its commitment to reduce plastic packaging by 50% by 2025.
February 10, 2021	Sainsbury’s launches a value campaign to price-match 250 products with the equivalent at rival supermarket Aldi.
December 9, 2020	Sainsbury’s announces that it will recruit over 12,000 seasonal associates to support its online business.
November 27, 2020	Sainsbury’s extends its opening hours to encourage customers to shop early and safely ahead of the festive season.
November 25, 2020	Sainsbury’s inaugurates a new 20,000 square foot supermarket store in Brackley, Northamptonshire.
November 12, 2020	Sainsbury’s opens two new stores in Neighborhood Hub format in Bishop’s Waltham and Midhurst.
November 4, 2020	Sainsbury’s announces a £5 million fund toward community support plan ahead of the second lockdown.
October 18, 2020	Sainsbury’s opens a new convenience store, including a click-and-collect point for Argos and Tu clothing.
September 28, 2020	Sainsbury’s plans to increase the capacity of online grocery to 700,000 orders per week by the end of October, almost doubling the capacity since the beginning of March.
August 17, 2020	Sainsbury’s extends home delivery for large items, including fridges and furniture, to 98% of residents living on the main Scottish islands.
July 27, 2020	Sainsbury’s announces that it is testing a virtual queuing app at five of its stores to help customers shop conveniently and safely in stores.

  Management Team

• Martin Scicluna—Chairman
• Simon Roberts—CEO
• Kevin O’ Byrne—CFO

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Source: Company reports