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1 Redhill Store Visit - March 2018
Welcome to RedhillMarch 2018
2 Redhill Store Visit - March 2018
Running order
Time Activity Location
13.15 - 13.30 Meet and greet Colleague canteen
13.30 - 13.40
13.40 - 13.55
13.55 - 14.10
14.10 - 14.30
Presentations/Q&A
Mike Coupe, Group CEO
Paul Mills-Hicks, Food Commercial Director
Simon Roberts, Retail and Operations Director
Q&A
Colleague canteen
14.30 - 16.15 Store tour Shop floor/online area
16.15 - 17.00 Tea Colleague canteen
17.00 Event ends Colleague canteen
3 Redhill Store Visit - March 2018
Sainsbury’s Redhill
Present in Redhill since 1899
Oct 2017Re-opened after 3 year extension and refurbishment
61,677sq.ft
sales floor
>61,000 peoplewithin a 10 minute drive
Argos3,000 sq.ft. store in store
New Tu store layout. 12,000 sq.ft
Explore Learning concession (mezzanine level)
Patisserie Valerieproducts in bakery
Sushi DailyConcession
So MeConcession
42,000sq.ft
food
Pizza CountersCooked to order
Coffee Pod
4 Redhill Store Visit - March 2018
Mike CoupeGroup Chief Executive
5 Redhill Store Visit - March 2018
Our strategy
Further enhance our differentiatedfood proposition
GrowGeneral Merchandiseand Clothing and deliver synergies
Diversify and growSainsbury’s Bank
Continue cost savings and maintain balance sheet strength
1 2
3 4
Paul Mills-HicksFood Commercial Director
7 Redhill Store Visit - March 2018
Grocery competition continues to increase
UK net grocery space cumulative impact on sales
2.90
3.00
3.10
3.20
3.30
3.40Average no. of fascia shopped per week
April 2015
Jan2018
Jan2016
Jan2017
Jul2016
Jul2017
Source: Company estimates Source: Nielsen
08/09 10/11 12/13 14/15 16/1706/07
8 Redhill Store Visit - March 2018
Winning customer transactions
3.1%
4.5%
1.1%
2.4%
Total Grocers Sainsbury's
Total GroceryYOY Transactions Growth % by Retailer
LY Growth
TY Growth
LY Growth
TY Growth
Source: Nielsen Panel, Rolling 52 we P13 201718
9 Redhill Store Visit - March 2018
96
97
98
99
100
101
We are maintaining our sales advantage
Total Grocery– 52w Rolling Sales Indexed
Source: Nielsen Panel, Rolling 52 we P13 201718
2015/16 2016/17 2017/18
Rest of Big 4
Total Sainsbury
10 Redhill Store Visit - March 2018
Enhancing our differentiated food proposition
Be competitive on commodity product
Deliver distinctive and exclusiveproducts
Colleagues make the difference with personal service
Consistent experience across channels
Serve new food and grocery missions
11 Redhill Store Visit - March 2018
Competitive on commodity product
Base £1.80Promo £1.00
Great Regular Price
£1.00
Was £1.60
New LowerPrice
£1.10vs Tesco £1.60
New LowerPrice65p
Importance of Functional Quality
Importance ofEmotional
Quality
Quality Option
Commodity
Everyday
Speciality
vs Aldi 65p
12 Redhill Store Visit - March 2018
Distinctive products: Slow Cook
Range expansion2017 (May)
Range refresh2017 (October)
Slow Cook First Launch
2016 (November)
2016 BBQ range(March)
Average sales per week (£m)
Source: Nectar Loyalty data, we 10.03.2018
Mar 2016 -Oct 2016
Nov 2016 -Mar 2017
Apr 2017 -Aug 2017
Sep 2017 -Mar 2018
13 Redhill Store Visit - March 2018
Now market leader in Slow Cook
0%
5%
10%
15%
20%
25%
30%
35%
Source: Kantar data, we 28.01.2018
2016 2017 2018
Marks & Spencer
Sainsbury’s
14 Redhill Store Visit - March 2018
Distinctive products drive success
2.9%
1.8%
1.0%
0%
1%
2%
3%
4%
5%
6%
7%
Impulse ASP
Total 5.7%
4.7%
LfL price increases
Mix: existing SKUs
Mix: new SKUs
Christmas 2017 trading data
15 Redhill Store Visit - March 2018
Simon RobertsRetail & Operations Director
16 Redhill Store Visit - March 2018
Be competitive on commodity product
Deliver distinctive and exclusiveproducts
Colleagues make the difference with personal service
Consistent experience across channels
Serve new food and grocery missions
Enhancing our differentiated food proposition
17 Redhill Store Visit - March 2018
Our retail priorities
Customers Will have an effortless and personalised experience
ColleaguesTrusted and empowered to deliver what matters most for customers
StoresOperationally sharper and more efficient
Quality & AvailabilityObsessed with the quality of our products and people
18 Redhill Store Visit - March 2018
Save to invest
£1 billionover 6 years
2015/16 2016/17 2017/18 2018/19 2019/20 2020/21
£540m £500m+
Guidance – Interim results, November 2017
19 Redhill Store Visit - March 2018
Cost base reduction
0
100
200
300
400
500
600
15/16-17/18
£m
Central
Logistics & Distribution
Stores
Guidance – Interim results, November 2017
Total £540m
20 Redhill Store Visit - March 2018
Whilst our Net Promoter Score has been improving
45
50
55
60
65
Forecast
Net Promoter Score 2016/17 to 2017/18
2016/17 2017/18
21 Redhill Store Visit - March 2018
Store operating model
Create winning leadership teams
The bestcolleagues
Effortless and personalised service
Enabling smart stores through agile support and technology
22 Redhill Store Visit - March 2018
Simplifying our structures
23 Redhill Store Visit - March 2018
Colleagues – the ‘new deal’ covers….Trusting and rewarding colleagues fairly
24 Redhill Store Visit - March 2018
Be competitive on commodity product
Deliver distinctive and exclusiveproducts
Colleagues make the difference with personal service
Consistent experience across channels
Serve new food and grocery missions
Enhancing our differentiated food proposition
25 Redhill Store Visit - March 2018
Q&A
26 Redhill Store Visit - March 2018
Introducing the team
Food StrategyPaul Mills-Hicks, Food Commercial Director
Bringing our strategy to life
Colleagues & Customer ServiceSimon Roberts, Retail & Operations Director
Grocery OnlineClodagh Moriarty, Director of Online
Food StrategyJames Bailey, Director of Grocery
Our SpaceGraham Biggart, Director of Commercial Operations
ArgosJohn Rogers, CEO - Sainsbury’s Argos