UK supermarket chain Sainsbury’s has unveiled plans to use more robots and artificial intelligence (AI) to streamline its operations and cut costs. The move is part of a £1bn cost-cutting drive over the next three years. Sainsbury’s will increase the use of automated tills and warehouse robots, as well as AI forecasting tools to improve stock management and ensure the right products are available in stores. While Sainsbury’s CEO Simon Roberts did not rule out job cuts, he emphasized that workers would have the opportunity to adapt to new roles and ways of working.
Roberts highlighted the need to find more efficient ways of operating, stating that the company’s current legacy systems were slowing down processes and leading to unnecessary waste. By capitalizing on its scale and investing in automation, Sainsbury’s aims to maintain its strong position in the industry. In contrast, some competitors burdened by heavy debt from private-equity deals may struggle to make similar investments cost-effectively.
As part of its investment plan, Sainsbury’s will also revamp 180 supermarkets to create more space for fresh produce and reallocate products sold in its Argos outlets. Additionally, the company will install electric vehicle fast chargers at 70 supermarkets, following the success of existing sites. Sainsbury’s is expanding its Nectar loyalty scheme, incorporating new digital features, and expects the program to contribute £100m to its profits over the next three years.
The supermarket chain has gained market share by investing £780m in price reductions over the past three years, making it more competitive against rivals such as Aldi, Lidl, and Tesco. Roberts noted that despite these investments, there is still untapped potential within the business.
To enhance the shopping experience, Sainsbury’s plans to increase the number of food aisles in 180 stores, enabling more customers to access its full range of products and improving the availability of fast-selling items. The company will also open 25 additional convenience stores each year.
Sainsbury’s will continue to face scrutiny over its loyalty scheme discounts. While these offers have attracted more shoppers, the Competition and Markets Authority is investigating loyalty schemes operated by major supermarkets.
As Sainsbury’s implements its automation and AI-driven strategies, it remains to be seen how these changes will impact workers. The company must strike a balance between adopting new technologies and ensuring the well-being of its workforce.
Overall, Sainsbury’s aims to optimize its operations, enhance customer experience, and drive profitability through strategic investments and the integration of automated systems. The supermarket chain believes these measures will position it as a market leader in the evolving retail industry.
