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