Sainsbury’s boss Simon Roberts has set a new cost savings target of £1bn over the next three years so the grocery giant can finance both better prices and higher pay for its workers.

The chief executive said he expects to boost the supermarket’s profit by putting food, Nectar card and convenience first under its ”Next Level Sainsbury’s” strategy.

Roberts said the updated plan, which builds on the momentum of its “Food First” strategy, will help take the grocery giant to the next level as it is ”just at the beginning of rediscovering quite what this business is capable of.”

The supermarket is planning to increase its grocery market volume share gains by ”bringing more of Sainsbury’s food range to more customers, becoming the first choice for food for more people, continuing to attract more bigger basket primary shoppers”.

It will also continue to build on its Nectar loyalty programme in the next three years, “offering personalised, rewarding and integrated loyalty and market-leading retail media capabilities”.

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Sainsbury’s said it plans to ”build on Argos’s strengths in convenience and value” through improved ranges and relevance while also delivering further operating model efficiencies.

The supermarket said it was looking to deliver another £1bn of “structural cost reduction” across the business on top of the £1.3bn it has achieved in the last three years.

Completion of the programme will mean the group has cut £2.5bn of costs over the last decade.

Roberts said: “Our Food First strategy has delivered on its promise over the last three years, making Sainsbury’s a stronger business with a much sharper position on value and a major refocus on our innovation.

“Our Next Level Sainsbury’s strategy is about giving customers more of what they come to Sainsbury’s for – outstanding value, unbeatable quality food and great service.

“We’re going to build on what’s driven our success since 2020. We’re determined to be First Choice for Food, ensuring more customers in more of our stores can enjoy more brilliant Sainsbury’s food.

“That means more space for our food offer, while still delivering the general merchandise products customers want from us. That way, not only will we find more ways to delight new and existing customers, we will also continue growing volume market share.

“By taking Sainsbury’s to the next level, delivering for customers and colleagues, we will also deliver enhanced returns for shareholders through a share buyback and committing to a progressive dividend.”

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