Sainsbury announces shift away from banking activities

18th Jan 2024 07:19

(Sharecast News) - Sainsbury has announced a "phased withdrawal" from its banking operations as it continues to pursue its so-called 'Food First' strategy.

The supermarket giant said that, following a strategic review of the Financial Services (FS) division, FS products will now be offered through dedicated FS providers through a distributed model, like it already does with its insurance products.

"Over time this will result in a phased withdrawal from our core Banking business. There will be no immediate changes to the products or services that we provide to customers as a result of this decision," the company said.

Jim Brown will retire from his role as chief executive of Sainsbury's Bank and will be succeeded by Robert Mulhall, the former head of Allied Irish Bank's UK division.

"We have been clear since we launched our Food First strategy in 2020 that we would concentrate our efforts on our core retail businesses and today's announcement reflects that strategic focus," said chief executive Simon Roberts.

"It's business as usual for now at Sainsbury's Bank and there will be no immediate changes to products and services as a result of today's announcement. We will of course communicate directly to customers well in advance of any changes to their products and services."