Sainsbury's Capital Markets day - key takeaways



Since the collapse of the Sainsbury's Asda merger, investors have been cautiously looking at Sainsbury's for clarity on their new strategy and whether this includes current Chief Executive Mike Coupe, the architect of the proposed merger or a new successor. In September the share price rose 12% as Coupe committed himself to continuing to lead the grocer and announced a range of initiatives that were well received by the market.


Key takeaways:


Improved efficiency

  • 60% same day delivery coverage

  • 40% increase in hourly pick rate

  • 2500+ self checkouts (every 1% of items moving to self checkout = £4.6m saving


In store investment

  • Investment into 250 supermarkets this year - redesigned and more integration with food concession, beauty, wellness etc

  • Concession predicted to contribute £45m pa by 2023

  • 10,000 stores refurbished in 2019 (£200m annual capital budget)


Costs

  • 150-200bps operating cost ratio improvement by 2023/24


Acquisitions + disposals

  • 10 new supermarkets set to open

  • Aiming to raise between £270m- £350m developing surplus land

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Telephone: +44 20 3790 8087,  Email: contact@atratocapital.com

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Supermarket Income REIT plc is listed on the London Stock Exchange. SUPR acquires UK supermarket sites that form a key part of the future model of grocery in the United Kingdom. SUPR aims to provide long-term RPI-linked income, from institutional grade tenants and the potential for capital growth through active asset management. Atrato Capital is the Company's Investment Adviser.

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