J Sainsbury PLC on Thursday said it has completed a strategic review of its Financial Services division and is exploring a number of options, while it has appointed a new chief executive officer for its Bank division.
The London-based supermarket chain said it is exploring options in order to improve the financial services offered to its customers and ‘consistent with the clear focus on our retail businesses’.
Sainsbury’s said its financial services products will continue to be offered in the future and will be provided by ‘dedicated financial services providers through a distributed model’. It noted that ‘we already do this successfully with our insurance products’.
This will result in a phased withdrawal over time from its core Banking business, Sainsbury’s said. with no immediate changes to the products or services that we provide to customers as a result of this decision.
‘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 Sainsbury’s CEO 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.’
Meanwhile, Sainsbury’s said Jim Brown will retire from his role as CEO of Sainsbury’s Bank.
It has appointed Robert Mulhall as his successor, who will take up the role at the end of March after a transition period. Mulhall’s appointment is also subject to regulatory approval.
‘Robert is an experienced retail banking leader with a strong track record of delivering successful transformation,’ the company said, noting he was CEO of Allied Irish Bank PLC’s UK division until 2022, having previously led its Irish retail banking division.
Since 2022, Sainsbury’s said Mulhall has the global financial services consulting business of Vision Consulting Ltd, focused on business transformation.
Shares in Sainsbury’s were up 0.2% to 286.00 pence each in London early Thursday.
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