Food and Beverage Business
Manufacturing

Sainsbury’s implements new bakery model to cut costs

Sainsbury’s, a leading UK retailer, recently announced the initiation of a program aimed at implementing a more efficient way of freshly baking products in-store. This initiative is part of the company’s ‘Save and invest to win’ program, which also involves reducing approximately 1,500 roles to streamline operations and improve overall efficiency.

The supermarket has put forth various proposals to adapt its business model, such as simplifying the Store Support Centre structure, enhancing Contact Centre operations, optimizing the general merchandise fulfillment network, and upgrading bakery offerings and availability in stores. Sainsbury’s has already begun transitioning stores to the new method of in-store baking and intends to expand this model to more locations. This change is expected to provide customers with tastier, more distinctive products of consistently great quality, ensuring availability throughout the day.

As part of this transition, Sainsbury’s will engage in a consultancy process with bakers at select stores and endeavor to find alternative roles for affected colleagues where feasible. Simon Roberts, the chief executive of Sainsbury’s, emphasized the company’s commitment to its Next Level strategy, which focuses on offering outstanding value, unbeatable quality food, and excellent service. The Save and Invest to Win program is a key component of this strategy, aimed at making necessary decisions to better align the business for customer-centric growth.

Roberts acknowledged the unsettling nature of the recent announcements for affected colleagues and reassured them of the company’s support during this transition period. “Today’s news is unsettling for affected colleagues and we will do everything we can to support them,” Roberts stated. As Sainsbury’s continues to evolve its strategy to meet the evolving needs of customers, these changes are seen as vital steps towards delivering on its promise of providing good food for all and setting a foundation for future growth.

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