J Sainsbury plc · LSE:SBRY
J Sainsbury — Q3 2020/21 Earnings Presentation
12 slides from J Sainsbury's earnings presentation, January 2021
Slide 1: Q3 Trading statement 2020/21
Q3 Trading statement 2020/21
Slide 2: Q3 and Christmas performance
2 Q3 and Christmas performance • Strong operating performance despite external challenges • Good availability • Continued acceleration of online grocery capacity growth • Record customer satisfaction scores • Argos digital transformation delivered through peak trading • Q3 LfL sales growth 8.6%1 • 9
Slide 3: Retail sales growth by category
3 Retail sales growth by category Grocery Clothing General Merchandise Total Retail sales sales sales sales growth 1 Argos 10.5% 10.7% 10.9% 8.5% 8.4% 7.4% 7.2% 7.6% 6.8% 6.0% 5.1% 5.2% Q1 Q2 Q3 0.4% Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Total GM (5.4)% (7.5)% (6.9)% (9.3)% (26.7)% Sainsbury’s GM 1 Ex
Slide 4: Q3 digital sales of £4bn
4 Q3 digital sales of £4bn Strong digital participation Total digital Clothing online Argos digital Groceries online sales 81% sales 5144%% sales 49% sales 128% 44% 15% 87% 3% C&C 15% Delivery 10% 26% 63% 0.2% 9% Q3 Q3 Q3 Q3 Q3 Q3 Q3 Q3 19/20 20/21 19/20 20/21 19/20 20/21 19/20 20/21 Digital partici
Slide 5: Grocery sales performance versus market
5 Grocery sales performance versus market Grocery Q3 20/21 value growth 1 Total Sainsbury’s Morrisons Lidl grocers Tesco Asda Aldi 1 Kantar Total Grocery 12-week value YoY growth, 12 weeks to 27 Dec 2020. Includes Food, Beverages, Alcohol, some Household and Health & Beauty categories J Sainsbury pl
Slide 6: Grocery sales performance versus market
6 Grocery sales performance versus market Food and Drink Q3 20/21 value growth 1 Sainsbury’s Morrisons Lidl Total grocers Tesco Asda Aldi 1 Kantar Total Food & Drink 12-week value YoY growth, 12 weeks to 27 Dec 2020. Includes Fresh & Chilled, Ambient Groceries & Frozen Food. Excludes Alcohol, Househ
Slide 7: Customers recognising our investment in service
7 Customers recognising our investment in service Supermarkets Customer Satisfaction2 Customer satisfaction index 1 Speed of Availability Sainsbury’s checkout of products +16% +6% Tesco Variety of Availability Morrisons items of colleagues Asda +10% +10% Value for 19/20 Q4 20/21 Q1 20/21 Q2 20/21 Q3
Slide 8: We have continued to grow online grocery capacity
8 We have continued to grow online grocery capacity Online sales growth1 Online weekly orders (12 week rolling avg.) 2 140% Sainsbury’s 800,000 120% Asda 700,000 100% Tesco 80% 600,000 60% 500,000 40% Ocado 20% Total online 400,000 0% 300,000 (20)% 19/20 20/21 19/20 20/21 1 Nielsen Panel Data; Total
Slide 9: Groceries Online: driving productivity
9 Groceries Online: driving productivity Rapid profitable expansion leveraging technology investments Orders per van Items picked per hour Online Customer satisfaction index3 +56%1 +14% Sainsbury’s Tesco +13% Average basket size +10% +9% Asda Click and Collect Morrisons participation from 3% to 16%
Slide 10: Nearly 90% of Argos sales online in peak quarter
10 Nearly 90% of Argos sales online in peak quarter Customers have changed the way they shop 100% Home delivery 80% +58% 60% Click and Collect (paid online) 40% +235% 20% Check & reserve Walk-in 0% Q3 19/20 Q3 20/21 J Sainsbury plc Q3 Trading Statement 2020/21
Slide 11: In the next 3 years we will transform our business
11 In the next 3 years we will transform our business We are clear on our priorities • Better value and innovation • Customer and profit focus • Structurally lower operating • Supporting the core food costs to fuel investment in • Underpinned by buying business the core benefits and lower cost to se
Slide 12: 7 key metrics
12 7 key metrics Delivering for customers and driving stronger financial outcomes Operational Financial • Strong customer satisfaction scores • UPBT growth • Maintain strong colleague engagement • Grocery market share performance • Deliver our Net Zero commitment • 200bp+ reduction in retail operati