Welcome to Redhill March 2018 1 Redhill Store Visit - March 2018 - - PowerPoint PPT Presentation

1 Redhill Store Visit - March 2018

Welcome to Redhill

March 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 2017 Re-opened after 3 year extension and refurbishment

61,677sq.ft sales floor >61,000 people within a 10 minute drive

Argos 3,000 sq.ft. store in store New Tu store layout. 12,000 sq.ft Explore Learning concession (mezzanine level) Patisserie Valerie products in bakery Sushi Daily Concession So Me Concession

42,000sq.ft food

Pizza Counters Cooked to order Coffee Pod

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Mike Coupe

Group Chief Executive

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Our strategy

Further enhance our differentiated food proposition Grow General Merchandise and Clothing and deliver synergies Diversify and grow Sainsbury’s Bank Continue cost savings and maintain balance sheet strength

1 2 3 4

Paul Mills-Hicks

Food Commercial Director

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Grocery competition continues to increase

UK net grocery space cumulative impact on sales

2.90 3.00 3.10 3.20 3.30 3.40

Average no. of fascia shopped per week

April 2015 Jan 2018 Jan 2016 Jan 2017 Jul 2016 Jul 2017

Source: Company estimates Source: Nielsen

08/09 10/11 12/13 14/15 16/17 06/07

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Winning customer transactions

3.1% 4.5% 1.1% 2.4%

Total Grocers Sainsbury's Total Grocery YOY Transactions Growth % by Retailer

LY Growth TY Growth LY Growth TY Growth

Source: Nielsen Panel, Rolling 52 we P13 201718

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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

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Enhancing our differentiated food proposition

Be competitive

• n commodity

product Deliver distinctive and exclusive products 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 £1.80 Promo £1.00

Great Regular Price

£1.00

Was £1.60

New Lower Price

£1.10

vs Tesco £1.60

New Lower Price

65p Importance of Functional Quality Importance of Emotional Quality

Quality Option

Commodity Everyday

Speciality

vs Aldi 65p

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Distinctive products: Slow Cook

Range expansion 2017 (May) Range refresh 2017 (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

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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

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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 Roberts

Retail & Operations Director

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Be competitive

• n commodity

product Deliver distinctive and exclusive products Colleagues make the difference with personal service Consistent experience across channels Serve new food and grocery missions

Enhancing our differentiated food proposition

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Our retail priorities

Customers

Will have an effortless and personalised experience

Colleagues

Trusted and empowered to deliver what matters most for customers

Stores

Operationally sharper and more efficient Quality & Availability Obsessed with the quality of our products and people

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Save to invest

£1 billion

• ver 6 years

2015/16 2016/17 2017/18 2018/19 2019/20 2020/21

£540m £500m+

Guidance – Interim results, November 2017

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Cost base reduction

100 200 300 400 500 600

15/16-17/18

£m Central Logistics & Distribution Stores

Guidance – Interim results, November 2017

Total £540m

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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

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Store operating model

Create winning leadership teams The best colleagues Effortless and personalised service

Enabling smart stores through agile support and technology

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Simplifying our structures

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Colleagues – the ‘new deal’ covers….

Trusting and rewarding colleagues fairly

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Be competitive

• n commodity

product Deliver distinctive and exclusive products Colleagues make the difference with personal service Consistent experience across channels Serve new food and grocery missions

Enhancing our differentiated food proposition

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Q&A

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Introducing the team

Food Strategy

Paul Mills-Hicks, Food Commercial Director

Bringing our strategy to life

Colleagues & Customer Service

Simon Roberts, Retail & Operations Director

Grocery Online

Clodagh Moriarty, Director of Online

Food Strategy

James Bailey, Director of Grocery

Our Space

Graham Biggart, Director of Commercial Operations

Argos

John Rogers, CEO - Sainsbury’s Argos