- Sainsbury’s is phasing out its own banking activities
- The supermarket giant will instead offer financial products through third parties
Sainsbury is plotting a ‘phased withdrawal’ from its banking operations as the retailer continues to pursue its ‘Food First’ strategy.
Financial products will be offered through ‘dedicated financial services providers’ through a distributed model. Sainsbury’s already does this with its insurance policies.
Sainsbury’s currently offers a range of credit cards, loans and savings accounts.
Strategy: Sainsbury’s CEO Simon Roberts opts for a ‘Food First’ strategy
In a brief statement, Sainsbury’s said: ‘Over time, this will result in a phased withdrawal from our core banking activities.’
It added: ‘There will be no immediate changes to the products or services we provide to customers as a result of this decision.’
Jim Brown will leave his role as CEO of Sainsbury’s Bank and be replaced by Robert Mulhall, the former head of Allied Irish Bank’s UK division.
Simon Roberts, CEO of Sainsbury’s, said: ‘Since we launched our Food First strategy in 2020, we have been clear that we would focus our efforts on our core retail businesses and today’s announcement reflects that strategic focus.’
He added: ‘For now it is ‘business as usual’ at Sainsbury’s Bank and there will be no immediate changes to products and services as a result of today’s announcement.
‘We will of course communicate directly with customers well in advance about any changes to their products and services.’
The company sold its mortgage portfolio, which included 3,500 customers and balances of around £479 million, to the Co-operative Bank in August.
Nectar Prizes: Sainsbury’s has increased its use of Nectar-only card prizes in store and online
Record sales of pigs in blankets, mince pies and sparkling wine helped Sainsbury’s have a great Christmas.
It claimed to have outperformed rivals in food sales in the retail ‘golden quarter’.
Grocery sales in the sixteen weeks to January 6 were 9.3 percent higher than a year earlier, as more customers opted for the ‘Taste the Difference’ private label range.
Roberts reiterated hopes of a profit of between £670m and £700m for the full year.
“For the fourth Christmas in a row, grocery volumes have exceeded the market,” he says.
The group said sales were ‘powered’ by Nectar Price, which allowed consumers to save an average of £16 on an £80 Christmas shopping spree.
Tesco’s Clubcard prices and Sainsbury’s Nectar prices will be scrutinized by the UK’s competition watchdog in an investigation into supermarket loyalty schemes.