Less Ads, More Data, More Tools Register for FREE

Sainsbury aims to be leading AI-enabled grocer as inks Microsoft deal

Fri, 17th May 2024 10:10

(Alliance News) - J Sainsbury PLC and Microsoft Corp on Friday signed a five-year strategic partnership, designed to help deliver the food retailer's Next Level Sainsbury's strategy.

Sainsbury, the London-based supermarket operator, said it would harness Microsoft's artificial intelligence and machine learning capabilities to improve store operations and drive greater efficiency delivering stronger returns for shareholders.

Clodagh Moriarty, Sainsbury's chief retail and technology officer, said the collaboration will "accelerate our ambition to become the UK's leading AI-enabled grocer."

"It's one of the key ways we're investing in transforming our capabilities over the next three years, enabling us to take another big leap forward in efficiency and productivity, continue to provide leading customer service and deliver returns for our shareholders."

Clare Barclay, chief executive Microsoft UK, said it was "delighted" to be working with Sainsbury's.

UBS said while no financial information was disclosed, this partnership "should deliver cost savings" under the save and invest to win programme that is targeting GBP1 billion structural cost reduction from technology and automation investments.

"This partnership helps gain confidence behind the strategy to gain competitive cost advantage but the update itself is likely to be neutral to the share price in our view," UBS analysts said.

Shares in J Sainsbury rose 0.3% to 283.00 pence in London on Friday.

Microsoft closed down 0.5% at USD420.93 in New York on Thursday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2024 Alliance News Ltd. All Rights Reserved.

Related Shares

More News
Today 09:42

Wet weather sees slowdown in grocery sales

(Sharecast News) - Fresh data released on Tuesday revealed a slowdown in take-home grocery sales, which increased by just 1.0% over the four weeks to ...

Today 08:36

TOP NEWS: Food price inflation falls in June on wet spring weather

(Alliance News) - Food price inflation fell for the sixteenth month in a row while sales ticked higher, figures on Tuesday showed.

Today 08:00

UK grocery inflation edges lower again ahead of election, Kantar says

*Kantar: Grocery inflation at 2.1% in 4 weeks to June 9

13 Jun 2024 08:59

Shein committed to engage on sustainability, labour when joined UK retail group, BRC CEO says

LONDON, June 13 (Reuters) - Fast-fashion group Shein committed to engage on issues including sustainability and ethical labour policies when it was ...

7 Jun 2024 12:23

UK's Asda says TDR Capital to become majority owner

TDR to buy Zuber Issa's 22.5% stake, giving it 67.5% *

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.