LONDON (dpa-AFX) - Sainsbury(J) PLC said its Food First strategy has delivered on its promise over the last three years. With an updated purpose, the Next Level Sainsbury's strategy focuses on four key outcomes: first choice for food; loyalty everyone loves; more Argos, more often; and save and invest to win. The Group anticipates retail operating profit growth from the start of the plan.
Sainsbury said it will invest, particularly enhancing choice in fresh food. The Group will focus on around 180 of these highest potential stores over the next three year. Also, the Group plans to open around 75 new Sainsbury's Local convenience stores over the next three years. Sainsbury now forecasts an incremental 100 million pounds of Nectar360 profit contribution over the three years to March 2027.
The Group said it will unlock a further 1 billion pounds of operating cost savings over the next three years. The Group continues to forecast retail free cash flow of at least 500 million pounds per year and now forecasts at least 1.6 billion pounds over the next three years. Capital expenditure are projected to increase to between 800 million and 850 million pounds per year over the next three years.
The Group said it will make an additional 70 million pounds investment in fiscal 2024/25 in Smart Charge Electric Vehicle charging network. Sainsbury will now commit to a progressive dividend policy from the start of next fiscal year and the commencement of a share buyback programme, with 200 million pounds of share capital to be bought back over the course of the next financial year.
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