Sainsbury’s is in a strong position to understand its customers, deliver personalised shopping experiences and help them discover new products, according to a new whitepaper.
Leveraging AI and search to get ahead in a saturated market, in association with Semrush, looks at the supermarket’s focus on giving customers more of the value, quality food and great service that they go to Sainsbury’s for.
The grocer aims to drive growth and efficiencies, deliver £1bn of structural cost reduction and become the first choice for more customers as it attracts a greater share of primary shoppers and invests in capabilities across technology and infrastructure.
“Thanks to our scale, our brand and our people, we are in a unique position to deliver for customers across Sainsburys, Argos and Nectar,” said Simon Roberts, chief executive of J Sainsbury plc.
Sainsbury’s is in a strong position to understand its customers, deliver personalised shopping experiences and help them discover new products. Its Nectar loyal programme generates more than 260mn different personalised offers each week. More than a million customers use Your Nectar prices every week, even when they were only available to online and SmartShop customers.
Nectar360 manages Sainsbury’s and Argos retail media services, where insights, first-party data and media expertise combine to connect the UK’s biggest brands – including 870 direct clients – with shoppers. Sainsbury’s is expanding its team and unifying capabilities across instore, onsite and offsite, with Nectar360 now forecast to contribute an incremental £100mn to group profit.
The grocer’s technology transformation programme, spearheaded by SAP, Accenture and AWS, will see it further move away from legacy systems.
Sainsbury’s is also working with Microsoft’s artificial intelligence and machine learning capabilities to improve store operations, create more interactive online shopping experiences and improve customers’ search experience.
The strategy does come at a cost to personnel, with Sainsbury’s announcing a reduction of 3,000 roles at the end of the first year of the Next Level strategy. This includes a 20% decrease in senior management roles.
This is one case study featured in the new white paper Leveraging AI and search to get ahead in a saturated market, in association with Semrush. The white paper investigates the critical intersection of artificial intelligence and search within the evolving retail landscape.
The analysis is illustrated with company profiles showcasing the approaches being taken by six retailers:
Adidas, Chanel, H&M, Ikea and Kroger
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