19/10/2004

Customer service at heart of Sainsbury's 'sales-led' strategy

In an attempt to turnaround its profits slide, troubled retailer Sainsbury's has unveiled a new "sales-led" strategy which will see an extra 3,000 floor staff recruited and £400 million pumped into customer services over the next three years.

Sainsbury's anticipate that its profit recovery plan, which flowed out of a comprehensive review of its business, will create £2.5 billion more in sales by the end of 2008.

A new management team with "retail expertise and track record of delivery" will also seek to restore the retailer's "unique brand proposition of great quality food at fair prices".

But in order to make its customer service commitments, the company has said that it will seek out at least £400 million in savings, and tighten up cash flow management.

Chief executive Justin King said that in regaining its brand image, the store would have to deliver great quality food at fair prices. The company had not delivered that effectively in the past, Mr King conceded.

"We are clear on the actions we need to take. We have strengthened our management team and already put in place a number of actions to restore the effective delivery of our customer offer," he said.

"The purest measure of customer satisfaction will be increased sales and we believe plans outlined today will grow sales by £2.5 billion over the next three years."

Chairman Philip Hampton said that the new plan was the "right approach" for Sainsbury's to deliver "long term sustainable performance and profit recovery".

(gmcg/mb)

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