CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Where now for Sainsbury’s share price as it unveils new strategy?

Last week, Sainsbury’s laid out its ‘Plan B’ in the wake of its failed Asda merger which will see it consolidate hundreds of supermarkets and Argos stores and significantly reduce costs and debt.

Sainsbury’s announced its ‘Plan B’ strategy to restore growth after its failed Asda merger that will see it close 125 supermarkets and Argos stores and open 200.

The supermarket chain will also stop selling new mortgages and plans to significantly reduce costs and the amount of debt on its balance sheet as part of its new strategy.

Its three-year net debt reduction target increased to at least £750 million from £600 million, with Sainsbury’s looking to reduce its debt pile by at least £300 million in FY19/20.

Since announcing the new strategy, Sainsbury’s share price has rallied 2% to 221p a share as of 11:15 GMT on Tuesday.

Technical analysis from our experts

'To understand the current technical position for Sainsburys, it makes sense to look at things from a long-term perspective, utilising the monthly chart. The past four-months have seen a number of attempts to break below £1.88, and while we have seen it breached, each occasion has failed to hold.'

Read the full detailed analysis in our platform now

Create a live or demo account to read.

Sainsbury’s looks to expand its value brands to drive sales

Sainsbury’s said that it remains focused on reducing prices on every day food and grocery products and expanding its range of value brands, which continue to be popular with consumers.

"Sales momentum was stronger in all areas and we further improved our performance relative to our competitors, particularly in Grocery,’ Sainsbury’s CEO Mike Coupe said in its second quarter results.

‘At the same time, we are investing significantly in our supermarkets, driving consistent improvements to service and availability,’ he added.

Second quarter total retail sales up 0.1 per cent (excluding fuel), with grocery sales up 0.6% and clothing sales up by 3.3%.

Argos has continued to grow market share, but sales were impacted by reduced promotional activity and the timing of new gaming and toy releases.

Start trading Sainsbury's shares with an IG demo or live account

Sainsbury’s warns investors of half-year profit dip

The supermarket chain warned investors that it expects first-half underlying profit to fall by around £50 million year-on-year, blaming cost savings, unseasonal weather and higher marketing costs for the decline.

However, the company left its full-year guidance unchanged, with it expecting a strong performance in the second-half of the financial year.


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.