J Sainsbury plc · LSE:SBRY
J Sainsbury — Q1 2021/22 Earnings Presentation
12 slides from J Sainsbury's earnings presentation, July 2021
Slide 1: Q1 Trading Statement 2021/22
Q1 Trading Statement 21/22 2021/22 J Sainsbury plc
Slide 2: Q1 performance
2 Q1 performance • Sales of Grocery, General Merchandise and Clothing all higher than expectations throughout Q1 – Grocery sales benefitted from higher in-home consumption as COVID-19 restrictions continue – General Merchandise sales lower than last year’s elevated levels but ahead of expectations •
Slide 3: Retail sales growth by category
3 Retail sales growth by category Grocery General Merchandise Clothing Total Retail sales growth sales growth sales growth sales growth 1 +11.3% +5.6% Argos +57.6% +10.3% +6.7% Yo2Y (3.7)% YoY Sainsbury’s GM +11.2% +15.5% Yo2Y (1.4)% +1.6% +0.8% YoY Yo2Y 0.9% YoY Yo2Y YoY Yo2Y YoY YoY Yo2Y Q1 21/22
Slide 4: Customer behaviour normalising gradually
4 Customer behaviour normalising gradually Supermarket transactions and basket size trends Basket size, £ Transactions, m FY 19/20 FY 20/21 Q1 21/22 J Sainsbury plc Q1 Trading Statement 2021/22
Slide 5: Continued growth in digital sales, significantly ahead of 19/20
5 Continued growth in digital sales, significantly ahead of 19/20 Total Digital Argos Digital SmartShop Groceries online +139% +69% +415% +142% 18% 14% 8% Yo2Y (11)% +29% +7% +11% YoY Q1 Q1 Q1 Yo2Y YoY Yo2Y YoY Yo2Y YoY 19/20 20/21 21/22 Sales growth Sales growth Sales growth Sales growth Online par
Slide 6: Ahead of the market on a one-year and two-year basis
6 Ahead of the market on a one-year and two-year basis Grocery volume growth 1 Q1 21/22 vs Q1 20/21 and Q1 19/20 25% 20% 15% 10% Yo2Y 5% YoY 0% -5% Total Sainsbury’s Tesco Asda Morrisons Aldi Lidl -10% grocers 1 NielsenIQ Panel volume growth YoY and Yo2Y. Total FMCG (excluding Kiosk & Tobacco), 15 w
Slide 7: Customer satisfaction ahead of competitors
7 Customer satisfaction ahead of competitors Supermarkets Online Customer satisfaction index 1 Customer satisfaction index 1 Availability Friendliness Speed Sainsbury’s Sainsbury’s +24% +5% +11% YoY 2 YoY2 YoY 2 Tesco Asda Morrisons Morrisons Asda Tesco Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 20/21 20/21 20/2
Slide 8: Value: encouraging early results on price investment
8 Value: encouraging early results on price investment Price index vs Aldi 1 Price index vs Tesco 1 Total Total Q1 22 vs Q4 21 Q1 22 vs Q4 21 improved flat 190bps - Centre of plate2 Centre of plate2 Q1 22 vs Q1 22 vs Q1 22 vs Q1 22 vs Q4 21 FY 213 Q4 21 FY 21 improved improved increased improved Q4
Slide 9: Online demand down from peak, but still high, IPH improving
9 Online demand down from peak, but still high, IPH improving Online weekly orders1 Items picked per hour (IPH) up 900,000 30 42% YoY 800,000 25 up 700,000 Q1 Q1 FY Q1 11% 20 19/20 20/21 20/21 21/22 Yo2Y 600,000 Supermarket 15 500,000 transactions 10 Basket size, £ 400,000 down 300,000 5 12% YoY 200
Slide 10: Argos digital participation remains strong
10 Argos digital participation remains strong Flexible fulfilment options 100% Home delivery 80% 38% 60% Click and Collect (paid online) 40% 52% 20% Check & reserve 8% Walk-in 0% FY FY Q1 19/20 20/21 21/22 J Sainsbury plc Q1 Trading Statement 2021/22
Slide 11: We are delivering on our priorities
11 We are delivering on our priorities • Better value and innovation • Customer and profit focus • Structurally lower operating • Underpinned by buying • Supporting the core food costs to fuel investment in benefits and lower cost business the core to serve • Cutting complexity and increasing pace o
Slide 12: Key metrics
12 8 key metrics Delivering for customers and driving stronger financial outcomes Operational Financial • Grocery market share performance • UPBT growth • Strong customer satisfaction scores • 200bps+ reduction in retail operating cost to sales • Maintain strong colleague engagement • Dependable ret