Sainsbury"s unveils store upgrade in Surrey to boost sales

Sainsbury's has initiated a program to refurbish 100 of its stores, aiming to enhance market growth and sales. A recent visit by market analysts to the Cobham superstore, which underwent renovations three months ago, revealed significant changes, including an expansion of grocery space by approximately 3,000 square feet and a more prominent display of Argos signage. The Tu clothing platform has also been streamlined as part of the upgrade. This refurbishment aligns with Sainsbury's Next Level strategy launched in February, which focuses on investing in technology and improving customer satisfaction over the next three years. The company aims to reduce operating costs by £1 billion and generate over £1.6 billion in retail free cash flow by 2027 to ensure healthy returns for shareholders. The stores selected for refurbishment are categorized into gold, silver, and bronze, with Cobham being classified as a gold store. The Cobham outlet has increased its food space by 13%, adding 130 new bays and 1,000 additional products. The store has also prioritized its food-to-go, food-for-now, and food-for-tonight offerings, which have reportedly had a positive initial impact on sales. Analysts express cautious optimism about the changes, noting that the true test will be whether customers notice and appreciate the improvements in the coming years. Recent data from Kantar indicates a 5.6% rise in Sainsbury's sales over the 12 weeks leading up to early September, slightly surpassing Tesco. Despite a slight decline in market share, Sainsbury's is gaining ground with a transformed grocery business, laying a solid foundation for future growth.