Grocer decides to focus on food business
Supermarket company Sainsbury’s is set to gradually withdraw from banking as part of its strategy to concentrate on its core food business.
According to a statement released on Thursday, it decided to implement a phased withdrawal from the banking business, with the company exploring various options while assuring that there will be no immediate changes to existing products or services.
The supermarket chain has been contemplating the sale of its banking unit, due to a perceived lack of benefit to shareholders. For the fiscal year ending February 28, 2023, the company reported a 9% decrease in underlying profit before tax from financial services, amounting to £58 million.
Sainsbury is planning a “phased withdrawal” from the banking division as part of its wider aim to focus on its core food business https://t.co/77wWcHZ7ZS
— Bloomberg UK (@BloombergUK) January 18, 2024
In 2023, Sainsbury’s Bank decided to sell its mortgage book – comprising about 3,500 customers and balances of around £479 million – to the Co-Operative Bank.
“We have been clear since we launched our Food First strategy in 2020 that we would concentrate our efforts on our core retail businesses, and today’s announcement reflects that strategic focus,” Simon Roberts, chief executive at Sainsbury’s, stated.
Today’s announcement also revealed changes to Sainsbury’s key personnel, starting with the retirement of Jim Brown, the current chief executive of Sainsbury’s Bank. He will be succeeded by Robert Mulhall at the end of March.
In addition, the report confirmed the departure of Paula Nickolds, general merchandise commercial director, who is set to assume the role of chief executive at The White Company starting end of March.
Graham Biggart, chief transformation officer, will assume responsibility for general merchandise and clothing, assisted by business unit director Matt Leeser, as part of Sainsbury’s streamlining of its operating board in the next phase of its strategy.
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