UK supermarket chain Sainsbury’s has revealed its three-year Next Level strategy as its implementation enters its second year.
The strategy aims to expand its core food ranges to a broader customer base while streamlining management and central divisions to enhance the performance of the Sainsbury’s and Argos brands.
As Sainsbury’s nears the end of the first year of Next Level, it reports strong momentum with seven quarters of volume growth, its “best-ever” value position, and “record” Christmas customer satisfaction.
The retailer plans to become “First Choice for Food” by repurposing space within its stores to accommodate an expanded selection of fresh food offerings.
Operations for the remaining patisserie, hot food and pizza counters will cease, with high-demanded products from these categories relocated to store aisles.
The retailer is set to offer revamped bakery recipes by summer 2025, complemented by new self-service bread-slicing amenities.
In a bid to further streamline operations, Sainsbury’s plans to close its remaining 61 cafés, pending consultation.
The retailer is revising its central management structures to bolster rapid decision-making capabilities.
Rhian Bartlett will assume the role of chief commercial officer while Graham Biggart will undertake dual responsibilities as managing director (MD) of Argos and chief strategy and supply officer.
Patrick Dunne will join the operating board as chief property and procurement officer and MD for SmartCharge.
Sainsbury’s is also optimising its central divisions and management structure as part of its Save and Invest to Win programme, which aims to realise £1bn ($1.2bn) in operating cost savings.
The restructuring will align head office departments with the specific needs of Sainsbury’s and Argos.
The changes will involve 20% cuts in senior management roles.
The overall strategy will remove 3,000 roles throughout the enterprise.
Sainsbury’s CEO Simon Roberts stated: “As we accelerate into year two and beyond of our strategy, we are facing a particularly challenging cost environment which means we have had to make tough choices about where we can afford to invest and where we need to do things differently to make our business more efficient and effective.
“The decisions we are announcing today are essential to ensure we continue to drive forward our momentum, but have meant some difficult choices impacting our dedicated colleagues. We’ll be doing everything we can to support anyone impacted by today’s announcements.”
In its fiscal year 2024/25 third quarter result, the retailer registered a 2.7% surge in total retail sales, excluding fuel.
