Sainsbury’s is Set on Transformation

John Ibbotson

John Ibbotson / 9th November 2016

Sainsbury’s results are out and they are set on transformation, what do these figures tell us? Here are my thoughts:

‘There’s no denying that the Argos integration has proved a distraction for Sainsbury’s in a brutal climate for grocers, but these better than expected numbers suggest its plan is starting to work.

“Sainsbury’s is by no means out of the woods yet but having a plan and sticking to it can count for a lot in the current environment.

“Longer-term, the Home Retail Group deal will provide countless digital, logistical, brand and platform benefits to Sainsbury’s.

“There was always a risk that looking too far ahead in the current cut-throat environment could be a high risk strategy but for now it’s looking fairly robust.sainsburys

“Sainsbury’s is set on transforming itself into a much bigger multi-channel retailer, with the advantage of a food offer, and that could position it well given the underlying problems within the traditional grocery sector.

“Against a backdrop of an intense price war, resurgent Morrisons and Tesco, and fall in Sterling, Sainsbury’s had to dig in and on this account it has done just that.

“Sainsbury’s is playing a slightly longer game than some of its competitors but future-proofing itself in this way could pay dividends down the line.”

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