Sainsbury’s plans to incorporate additional self-service checkout machines and automated warehouse robots, as well as utilize AI prediction tools, in order to efficiently manage inventory and reduce costs by £1 billion within the next three years.
The CEO of Sainsbury’s, Simon Roberts, did not deny the possibility of job cuts due to the changes. However, he did not make any statements about layoffs and assured that employees would have the opportunity to switch roles and adjust to the new work methods.
According to Roberts, the group’s outdated systems are causing delays and resulting in unnecessary wastage. He emphasized the need to improve and streamline processes.
According to him, Sainsbury’s is taking advantage of its size and making investments at a time when others are unable to. He stated that the company is currently in a formidable position and assured that they will be repurchasing £200 million worth of shares this year, as a bonus for shareholders.
Roberts commented on the significant financial obligations of competitors like Asda and Morrisons, who were acquired through private equity transactions in recent years. He stated that several of our rivals may not have the resources or ability to efficiently make similar investments currently, which he believes will ultimately determine the successful players in this sector.
Sainsbury’s plans to invest up to £850m each year for the next three years. This will include renovating 180 of its supermarkets to prioritize food, particularly fresh produce. Additionally, the company will be removing products that are also sold in its Argos stores, such as electronics.
This year, £70 million will be allocated to installing fast electric vehicle chargers at 70 supermarkets, following the success of 27 current sites.
Sainsbury’s is increasing the scope of its Nectar rewards program, incorporating advanced digital features. The company anticipates that the program will contribute an additional £100m to its profits within three years, surpassing its initial goal of £90m in four years.
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Last year, the scheme’s exclusive deals for members were praised for boosting Sainsbury’s customer base. However, the competition authority is now investigating loyalty programs offered by major grocery stores.
In the past three years, Sainsbury’s has invested £780m to remain competitive with Aldi, Lidl, and Tesco by controlling prices and attracting more customers, resulting in an increase in market share.
According to Roberts, the group has taken on the majority of the necessary financial investment and has also seen an increase in sales volume. While the focus will remain on maintaining its current standing, Roberts mentioned the possibility of investing in other aspects of the supermarket.
“I believe we have just scratched the surface of this business’s potential,” he stated.
According to Roberts, Sainsbury’s plans to expand the food aisles in 180 stores to allow more customers to access its full range of products. This will also increase the likelihood of having popular items in stock.
The team also intends to launch an additional 25 convenience stores annually.
Source: theguardian.com
