Return to office drives surge in big weekly shopping, says Sainsbury's CEO

In the UK, the chief executive of Sainsbury’s, Simon Roberts, revealed that a decline in remote working has led to an increase in the traditional weekly grocery shopping model. According to Roberts, with more employees returning to their offices post-Covid, customers are finding themselves short on time, which incentivizes them to stock up weekly. He argues that this change challenges the notion that consumers prefer smaller, more frequent shopping trips. Sainsbury’s has seen growth in its market share, attributed to this resurgence in weekly trolley shopping. Under Roberts' leadership for nearly five years, the supermarket has strategically focused on improving its food offerings while also planning to refurbish 180 supermarkets. The investments will reduce the space allocated to non-food items and expand food lines available to shoppers. Additionally, Sainsbury’s plans to open 40 new stores, aiming to enhance its presence in a competitive market where rivals are also vying for shopper loyalty. The company has adjusted its operations in budget adjustments and staffing to remain agile amidst rising costs. The company’s adjustments come as rising employment costs due to increased national insurance and minimum wage laws have challenged profit margins. As a result, Sainsbury’s faced a significant reduction in its shares and market value last year, prompting tough choices like cutting 15,000 jobs as part of restructuring efforts after pandemic-related hiring boosts. Roberts also addressed concerns regarding shoplifting, which has been exacerbated by shifts in shopping behaviors and employment cuts. Sainsbury’s has implemented new technology to combat theft and improve store efficiency, providing customers with flexible payment options. Despite these challenges, the focus on larger weekly shops appears to resonate with consumers, signaling a shift back to pre-pandemic shopping habits even as the grocery market landscape changes rapidly.