J Sainsbury Plc · LSE:SBRY
J Sainsbury — Investor Presentation (March 2018)
26 slides from J Sainsbury's investor presentation, March 2018
Slide 1: Welcome to Redhill
Welcome to Redhill March 2018 1 Redhill Store Visit - March 2018
Slide 2: Running order
Running order Time Activity Location 13.15 - 13.30 Meet and greet Colleague canteen Presentations/Q&A Colleague canteen 13.30 - 13.40 Mike Coupe, Group CEO 13.40 - 13.55 Paul Mills-Hicks, Food Commercial Director 13.55 - 14.10 Simon Roberts, Retail and Operations Director 14.10 - 14.30 Q&A 14.30 - 1
Slide 3: Sainsbury's Redhill
Sainsbury’s Redhill Pizza Counters Cooked to order Present in Redhill since 1899 Patisserie Valerie products in bakery Sushi Daily Concession Oct 2017 Re-opened after 3 year extension and refurbishment Argos 3,000 sq.ft. store in store >61,000 people New Tu store layout. 12,000 sq.ft within a 10 min
Slide 4: Mike Coupe
Mike Coupe Group Chief Executive 4 Redhill Store Visit - March 2018
Slide 5: Our strategy
Our strategy 1 2 Grow Further enhance our General Merchandise differentiated and Clothing and food proposition deliver synergies 3 4 Continue Diversify cost savings and and grow maintain balance sheet Sainsbury’s Bank strength 5 Redhill Store Visit - March 2018
Slide 6: Paul Mills-Hicks
Paul Mills-Hicks Food Commercial Director
Slide 7: Grocery competition continues to increase
Grocery competition continues to increase UK net grocery space cumulative impact on sales Average no. of fascia shopped per week 3.40 3.30 3.20 3.10 3.00 2.90 06/07 08/09 10/11 12/13 14/15 16/17 April Jan Jul Jan Jul Jan 2015 2016 2016 2017 2017 2018 Source: Company estimates Source: Nielsen 7 Redhi
Slide 8: Winning customer transactions
Winning customer transactions Total Grocery YOY Transactions Growth % by Retailer 4.5% LY Growth 3.1% LY Growth 2.4% TY Growth 1.1% TY Growth Total Grocers Sainsbury's Source: Nielsen Panel, Rolling 52 we P13 201718 8 Redhill Store Visit - March 2018
Slide 9: We are maintaining our sales advantage
We are maintaining our sales advantage 101 Total Grocery– 52w Rolling Sales Indexed 100 Total Sainsbury 99 98 Rest of Big 4 97 96 2015/16 2016/17 2017/18 Source: Nielsen Panel, Rolling 52 we P13 201718 9 Redhill Store Visit - March 2018
Slide 10: Enhancing our differentiated food proposition
Enhancing our differentiated food proposition Be Deliver Serve new Consistent Colleagues competitive distinctive and food and experience make the on commodity exclusive grocery across channels difference with product products missions personal service 10 Redhill Store Visit - March 2018
Slide 11: Competitive on commodity product
Competitive on commodity product New Lower Speciality Price 65p vs Aldi 65p Quality Option Was £1.60 Everyday New Lower Price £1.10 vs Tesco £1.60 Importance of Commodity Base £1.80 Emotional Promo £1.00 Quality Great Regular Price Importance of Functional Quality £1.00 11 Redhill Store Visit - Marc
Slide 12: Distinctive products: Slow Cook
Distinctive products: Slow Cook Average sales per week (£m) Mar 2016 - Nov 2016 - Apr 2017 - Sep 2017 - Oct 2016 Mar 2017 Aug 2017 Mar 2018 2016 BBQ range Slow Cook Range expansion Range refresh (March) First Launch 2017 (May) 2017 (October) 2016 (November) Source: Nectar Loyalty data, we 10.03.2018
Slide 13: Now market leader in Slow Cook
Now market leader in Slow Cook 35% 30% Marks & Spencer 25% 20% 15% 10% Sainsbury’s 5% 0% 2016 2017 2018 Source: Kantar data, we 28.01.2018 13 Redhill Store Visit - March 2018
Slide 14: Distinctive products drive success
Distinctive products drive success 7% 6% Total 5.7% 1.0% 5% 1.8% 4% 3% 2.9% 4.7% 2% LfL price increases 1% Mix: existing SKUs Mix: new SKUs 0% Impulse ASP Christmas 2017 trading data 14 Redhill Store Visit - March 2018
Slide 15: Simon Roberts
Simon Roberts Retail & Operations Director 15 Redhill Store Visit - March 2018
Slide 16: Enhancing our differentiated food proposition
Enhancing our differentiated food proposition Be Deliver Serve new Consistent Colleagues competitive distinctive and food and experience make the on commodity exclusive grocery across channels difference with product products missions personal service 16 Redhill Store Visit - March 2018
Slide 17: Our retail priorities
Our retail priorities Customers Colleagues Stores Quality & Will have an Trusted and Operationally Availability effortless and empowered to sharper and more Obsessed with the personalised deliver what matters efficient quality of our experience most for customers products and people 17 Redhill Store
Slide 18: Save to invest: £1 billion
Save to invest £1 billion over 6 years 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 £540m £500m+ Guidance – Interim results, November 2017 18 Redhill Store Visit - March 2018
Slide 19: Cost base reduction
Cost base reduction 600 Total £540m 500 400 £m 300 200 Central 100 Logistics & Distribution 0 Stores 15/16-17/18 Guidance – Interim results, November 2017 19 Redhill Store Visit - March 2018
Slide 20: Whilst our Net Promoter Score has been improving
Whilst our Net Promoter Score has been improving 65 Net Promoter Score 2016/17 to 2017/18 60 55 50 45 2016/17 2017/18 Forecast 20 Redhill Store Visit - March 2018
Slide 21: Store operating model
Store operating model Create winning The best Effortless and Enabling smart leadership teams colleagues personalised stores through agile service support and technology 21 Redhill Store Visit - March 2018
Slide 22: Simplifying our structures
Simplifying our structures 22 Redhill Store Visit - March 2018
Slide 23: Colleagues – the 'new deal' covers….
Colleagues – the ‘new deal’ covers…. Trusting and rewarding colleagues fairly 23 Redhill Store Visit - March 2018
Slide 24: Enhancing our differentiated food proposition
Enhancing our differentiated food proposition Be Deliver Serve new Consistent Colleagues competitive distinctive and food and experience make the on commodity exclusive grocery across channels difference with product products missions personal service 24 Redhill Store Visit - March 2018
Slide 25: Q&A
Q&A 25 Redhill Store Visit - March 2018
Slide 26: Introducing the team
Introducing the team Bringing our strategy to life Food Strategy Food Strategy Paul Mills-Hicks, Food Commercial Director James Bailey, Director of Grocery Colleagues & Customer Service Our Space Simon Roberts, Retail & Operations Director Graham Biggart, Director of Commercial Operations Grocery On