Cost savings

Improving the way we work

Our ‘Making Sainsbury’s Great Again’ recovery plan delivered significant operational efficiencies through the improvement of our supply chain and information technology infrastructure. This progress has continued over the last year where we have been able to offset 75 per cent of total cost inflation through cost efficiency programmes.

For example, we have introduced new checkout equipment that scans faster and prints double sided receipts that provide environmental benefits. Over 100 stores now have self-scanning tills that provide customers with check-out choices and shelf-ready packaging continues to improve replenishment.

In August 2008 we opened our flagship ‘green’ store in Dartmouth, Devon. This store reduces overall emissions by 54 per cent through the use of renewable energy and reduced consumption, while rainwater harvesting has reduced mains water usage by 60 per cent.

Over 200 other stores have now rolled-out new technology and enhanced housekeeping initiatives saving over 53,000 tonnes of CO2 every year as a result.

During the last year we have redefined the role of Deputy Store Managers to eliminate duplicated activities and setting out new accountabilities and reporting lines. This change has been supported by comprehensive training to ensure that we retain our customer focus. We have also introduced a Human Resources centre in Manchester to handle some of the store administration and allow more time to be spent in store on mentoring, training and leadership.

These are just a few of the changes we have made during the last year, with similar programmes being introduced on an on-going basis.

May 2009