J Sainsbury Announces Strategy Update and Share Buyback Program

J Sainsbury, the British grocer, has unveiled its strategy update, which includes a share buyback program, with the aim of saving £1 billion ($1.26 billion) in structural costs over the next three years. The company plans to invest in technology and infrastructure to drive growth and efficiencies.

Investing in Capabilities

In order to achieve its growth objectives, J Sainsbury plans to invest in its capabilities across technology and infrastructure. By doing so, it anticipates achieving over £1.6 billion of retail free cash flow in the next three years. Additionally, it plans to implement a progressive dividend policy from the beginning of the next financial year.

Driving Volume Growth and Profit Leverage

J Sainsbury expects to outpace the market in terms of food volume growth. It also aims to leverage sales growth to drive retail operating profit growth from the start of its plan. To support these efforts, the company will increase its capital expenditure to between £800 million and £850 million per year over the next three years.

Share Buyback Program

As part of its financial strategy, J Sainsbury has initiated a £200 million share buyback program. This, along with other strategic initiatives, is intended to strengthen the company's financial platform and deliver enhanced returns to shareholders.

Overall, J Sainsbury is placing a strong emphasis on refocusing its core offering and positioning itself for future growth. By resetting its competitive position and capitalizing on emerging opportunities, the company is confident that it can create value for both its customers and shareholders.