Sainsbury’s boss Simon Roberts is expected to present the next phase of the supermarket’s strategy, including a new target for cost savings, as it looks to build on the momentum of a strong 2023.
The cost savings are thought to be used to fund both lower prices for customers and a 9% pay rise for staff from next month worth £200m, Reuters reported.
Deleted: The supermarket’s strategy update is due to take place on 7 February.
Sainsbury’s analysts and investors predict the CEO will lay out profit growth opportunities for the business, such as retail media, and possibly share some margin guidance.
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They also expect the executive to unveil plans to start a share buyback, given its stronger balance sheet, with Barclays analysts claiming it can afford to spend as much as £300m per year.
The supermarket said last month it will wind down its banking business and offer financial products via third parties instead.
Earlier this week, Kantar figures revealed Sainsbury’s scooped up even more market share as its sales soared.
The supermarket’s revenues surged 8.1% in the 12 weeks to 21 January, accounting for 15.7% of the total market, up 0.3% on last year.
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