J Sainsbury PLC

Good food 
for all of us
Annual Report and 
Financial Statements 
2024

We make good food joyful, accessible 
and affordable for everyone, every day
 
Offering delicious, great quality food at competitive 
prices has been at the heart of what we do since 
Sainsbury’s was founded in 1869. Today, inspiring 
and delighting our customers with tasty food remains 
our priority. 
Our Next Level Sainsbury’s strategy is about giving 
customers more of what they come to Sainsbury’s for 
– outstanding value, consistently excellent quality 
and great service.

Strategic Report
Governance Report
Financial Statements
J Sainsbury plc Annual Report and Financial Statements 2024  1
Performance highlights
Strategic Report
1	
Performance highlights
2	
Chair’s letter
4	
Chief Executive’s letter
8	
Our business model 
10	
Our strategy
12	
Delivering on our outcomes
15	
Plan for better
18	
Our people
22	
Our Section 172 statement
23	
Engaging with our stakeholders
30	
Climate change and Task Force on 
Climate-related Financial Disclosures 
(TCFD) 
41	
Climate Transition Plan (TCFD) 
44	
Key performance indicators
46	
Financial review
53	
Principal risks and uncertainties
62	
Statement of viability
64	
Non-financial and sustainability 
information statement
Governance Report
66	
Introduction to the governance report 
68	
J Sainsbury plc – Board of Directors 2024/25
71	
J Sainsbury plc – Operating Board 2024/25
73	
Board leadership and Company purpose
81	
Composition, succession and evaluation
84	
Division of responsibilities
85	
Nomination and Governance 
Committee report
89	
Corporate Responsibility and Sustainability 
Committee report
92	
Audit Committee report
99	
Annual Statement from the Remuneration 
Committee Chair
102	 Summary of 2023/24 remuneration 
decisions
103	 Summary of remuneration for 2024/25
104	 Remuneration in context 
106	 Annual Report on Remuneration
118	 Additional statutory information
Financial Statements
123	 Statement of Directors’ responsibilities
124	 Independent auditor’s report to the 
members of J Sainsbury plc
132	 Consolidated income statement
133	 Consolidated statement of comprehensive 
income/(loss)
134	 Consolidated balance sheet
135	 Consolidated statement of changes 
in equity
136	 Consolidated cash flow statement
137	 Notes to the consolidated financial 
statements
194	 Company balance sheet
195	 Company statement of changes in equity
196	 Notes to the Company financial statements
199	 Alternative performance measures (APMs)
204	 Additional shareholder information
206	 Glossary
See our KPIs  
on pages 44 to 45
Financial highlights
Non-financial highlights
6.8%
Retail sales growth (excl. fuel) versus the 2022/23 financial 
year. Including fuel sales increased 3.2%
£780m
Invested in lowering prices over the past three years, 
since the launch of Food First strategy
£701m
Underlying profit before tax, up 1.6% versus the 2022/23 
financial year
£500m
Invested into colleague pay over three years
22.1p
Underlying basic earnings per share, down 3.9% versus 23.0p 
in the 2022/23 financial year. Basic earnings per share 5.9p
51.7%
Reduction in absolute greenhouse gas emissions within 
our own operations, from our 2018/19 baseline
£639m
Retail free cash flow, versus £645 million in the 2022/23 
financial year. Statutory net cash generated from operating 
activities was £1,965 million, versus £2,170 million in the 
2022/23 financial year
£36m
Raised for good causes
£966m
Retail underlying operating profit, up 4.3% versus the 
2022/23 financial year
12.9%
Relative reduction in own brand plastic packaging, from our 
baselines in 2018 for food and 2020 for general merchandise
£277m
Statutory profit before tax down 15.3% versus the 2022/23 
financial year
8.3%
Return on capital employed, up 70 basis points versus the 
2022/23 financial year

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2  J Sainsbury plc Annual Report and Financial Statements 2024
Chair’s letter
We had another strong year 
at Sainsbury’s, continuing 
to deliver for our customers, 
colleagues and shareholders 
and deepening our 
relationships with suppliers. 
As we look back on our performance over the last year, our results reflect the 
success of our three-year Food First strategy and provide a strong platform 
from which to grow as we progress our new Next Level Sainsbury’s plan.
Reflecting on Food First
The Food First strategy has transformed Sainsbury’s, creating a stronger 
business with a much sharper value position and a refreshed focus on 
innovation. Customers have recognised the progress we’ve made, as our 
market share gains have shown. 
The sector continues to face huge pressures, with an increasingly complex 
and cost-heavy legislative environment. We have proven our resilience 
against significant macroeconomic challenges and, against this backdrop, 
we have supported our customers and colleagues. We invested £780 million 
over the last three years in value and passing on cost savings to customers, 
helping transform our value proposition. We also invested £500 million in 
colleague pay over three years, including our biggest ever single investment 
in colleague pay in March of this year.
We delivered on our priorities and continue to make bold decisions to speed 
up the pace of change and development across the business. Over the course 
of Food First, we delivered a £1.3 billion cost savings programme, improving 
the structural efficiency of the business and enabling us to continue to 
invest at scale where it matters most. Our programme to transform our 
Argos store estate has also been significantly progressed, driving the 
digitisation and resilience of Argos.
Over the last year, we have also made necessary decisions to improve our 
business model. In January, we announced the completion of a strategic 
review of our Financial Services division which will, over time, result in a 
phased withdrawal from our core Banking business. 
We remain firmly committed to protecting our planet, helping customers 
move to healthier and more sustainable diets and supporting our suppliers, 
colleagues and the broader communities we operate in. Our accelerated 
carbon reduction targets have been approved by the Science Based Targets 
Initiative and we have reduced plastic packaging from our own brand 
products by 12.9 per cent in relative terms versus our baseline. Read more on 
our Plan for Better progress on page 15. 
Our updated strategy and commitments 
We have spent the past three years putting food back at the heart of the 
business and now, as we look ahead at the next three years, our new Next 
Level Sainsbury’s strategy will build on this momentum. We have reset our 
competitive position and created a strong financial platform from which we 
will grow, invest in further strengthening the business and deliver enhanced 
returns to shareholders. 
To progress our Next Level Sainsbury’s plan, we are making eight commitments 
that we will deliver over the three years to March 2027. First, we will deliver 
grocery volume growth ahead of the market. This commitment is 
underpinned by our transformed value perception, great range and 
consistently high levels of customer service. 
Next, we commit to deliver profit leverage from sales growth. This means 
we’ll put more volume over our largely fixed cost base. We will invest to 
bring more of our range to more customers, particularly enhancing choice 
in fresh food, and will create more space for food in many locations. 
We expect this to be a key driver of grocery volume gains. 
We’ve built a leadership position on customer satisfaction over the other 
full choice competitors in the market and we’re really committed, over the 
life of this plan, to build on this level of performance. Our core belief is that 
well-motivated and engaged colleagues deliver excellent service, leading to 
higher productivity. This is why we will maintain our commitment to invest 
in our people and continue to improve productivity over the course of this 
plan, with colleague engagement ahead of where we are now by March 2027. 
We’re fully committed to our goal of reaching net zero by 2035 in our own 
operations and to delivering all of our commitments across healthier diets, 
climate, nature and people. This is why Plan for Better is integrated into 
each of our four key outcomes and will continue to underpin our ambitions 
into the future. 
We’re also committing to deliver £1 billion of structural cost savings over the 
life of this plan, improving efficiency, offsetting operating cost inflation and 
enabling us to continue to invest in the customer offer. 
Our strong financial position and momentum mean we’re able to invest 
more capital to drive growth and strengthen the key strategic capabilities of 
this business in areas like technology and automation. We will be investing 
with a clear focus on efficiencies and productivity, helping drive higher 
returns. We will capitalise on our scale and invest at a time when many 
others can’t, further building on our competitive advantage and reducing 
our cost base. 
This higher level of capital investment is balanced with a reinforced 
commitment to strong free cash flow generation– at least £500 million 
every year, growing as we deliver higher profits. 
We have committed to delivering stronger returns for our shareholders. 
Specifically, a progressive dividend from the start of the next financial year 
and a share buyback programme, starting with a £200 million buyback this 
financial year.
Building a business for the future 
As we look ahead to the next three years and well beyond, we’re driven by 
a clear purpose: to make good food joyful, accessible and affordable for 
everyone, every day. Our new purpose is all about how we deliver for our 
customers, how we do business and how we work right across our industry 
to create a more sustainable UK food system. Central to this is our Plan for 
Better. It is a core part of our broader strategy and is fully integrated into 
the way we operate as a business, driving improved commercial and 
sustainability outcomes. The way we partner with our suppliers is vital 
to this, with longer term relationships that will help to drive the resilience 
of our businesses and the broader food system. 

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Through our Plan for Better, we have reduced our carbon emissions by 
transitioning to 100 per cent renewable electricity across the whole of our 
store estate through the long-term purchasing of new-to-planet energy, 
significantly reducing our reliance on fossil fuels. In February, we were the 
only UK supermarket awarded an A rating for our environmental 
commitments on climate change for the tenth consecutive year by the 
Carbon Disclosure Project and we were also recognised as a 2023 Supplier 
Engagement Leader.
We continue to build on this progress and to evolve our ambitions around 
key issues, including healthy, sustainable diets; plastic and nature – 
growing sales of plant-rich foods, improving protein diversity, considering 
packaging holistically and protecting and restoring nature. We will continue 
to work with our entire value chain, supporting our suppliers wherever 
we can – including through longer-term partnerships. We also remain 
committed to supporting our colleagues and will be setting out new 
gender and ethnicity targets to further increase diverse representation. 
Financial Review
We delivered another strong performance this year, demonstrating the 
success of our Food First strategy, with profit and free cash flow results 
above the top end of our guidance range. Our grocery performance was 
particularly strong, with record market share gains and volume growth 
accelerating every quarter. This delivered better profit leverage, with retail 
underlying operating profit of £966 million, up 4.3 per cent versus 2022/23 
as the strong grocery performance and continued strong delivery of cost 
savings more than offset softer Argos trading. Including a weaker contribution 
year-on-year from Financial Services and higher finance costs, underlying 
profit before tax of £701 million, up 1.6 per cent versus 2022/23. 
Statutory profit before tax was £277 million, which was down 15.3 per cent 
on 2022/23, with non underlying items predominantly reflecting impairments 
relating to the restructuring of the Financial Services division. Retail free 
cashflow was £639 million, broadly flat year-on-year. 
Net debt including leases reduced by £790 million to £5,554 million, 
reflecting strong cash generation and a £372 million reduction as a result of 
the Highbury and Dragon property transaction. Underlying basic earnings 
per share was 22.1 pence and basic earnings per share was 5.9 pence, with 
both reflecting the impact of the increase in the corporation tax rate. 
It should also be noted that over the last three years we have paid over 
£2.8 billion in taxes borne. This includes £1.38 billion of business rates, 
£646 million in Employer’s National Insurance Contributions and £181 million 
in Corporation Tax, as well as other tax obligations. As we strive to invest in 
our colleagues and deliver consistently great value, a reformed business 
rates system would enable us to do even more. Long-term reform will not 
only benefit Sainsbury’s, but boost growth, create jobs and revitalise our 
high streets.
More information on our financial performance can be found in the 
Financial Review on page 46. 
Delivering for our shareholders
The Board proposed a final dividend of 9.2 pence, bringing the full-year 
dividend to 13.1 pence per share, which is in line with last year. Our policy of 
paying a dividend of around 60 per cent of underlying earnings has allowed 
us to maintain a full-year dividend which is flat year-on-year, despite the 
impact on underlying earnings per share of the higher corporation tax rate.
Remuneration 
When determining incentive outcomes and total remuneration received by 
the Executive Directors, the Remuneration Committee carefully assesses 
performance against a framework – including several factors, like executive 
pay in the context of the broader workforce and investments – to ensure 
that incentive outcomes are aligned to the underlying performance of the 
business and the experience of shareholders. 
Simon’s remuneration for the year reflects the strong performance of the 
business over the period and considers the prevailing market and economic 
conditions. Under Simon’s leadership, Sainsbury’s has made great progress 
in delivering the Food First strategy as well as developing the Next Level 
strategy, including operating model changes that will deliver further 
cost savings. 
For more information on this year’s remuneration awards, please see 
pages 99 to 117. 
Operating board changes 
We move into the next phase of our strategy with a more focused structure 
for our Operating Board, now with eight members. 
To help drive Next Level Sainsbury’s, Graham Biggart has taken on new 
responsibilities as Chief Transformation Officer and General Merchandise 
Commercial Officer, helping to further accelerate both our transformation 
and our performance. Rhian Bartlett’s role on the Operating Board is now 
Chief Food Commercial Officer, recognising the continued acceleration of 
our Food First strategy. This change to our leadership came as Paula Nickolds, 
General Merchandise Commercial Director, made the decision to leave the 
business, having led much progress across Argos, Habitat and Tu.
Jim Brown, Chief Executive Officer of Sainsbury’s Bank, decided to retire. 
Jim joined the business in 2019 and his strategy to align Financial Services 
to loyal Sainsbury’s customers resulted in the Bank paying its first dividend 
in 2022. Robert Mulhall has been appointed as CEO of Sainsbury’s Bank, 
reporting into the Bank Board and connecting into the Sainsbury’s Operating 
Board via Bláthnaid Bergin, our Chief Financial Officer.
Finally, Tim Fallowfield has decided to retire from his role as Company 
Secretary and Corporate Services Director at our AGM in July, after more 
than 22 years with Sainsbury’s. Tim joined the business in 2001, becoming 
an Operating Board Director in 2004 and he has made a major contribution 
to Sainsbury’s. His role as our Board sponsor for disability and carers and his 
leadership and support to the Government in raising awareness of the 
benefits of recruiting, retaining and developing disabled people led to his 
being awarded an OBE in the 2020 New Years Honours List.
I would like to personally thank Jim, Paula and Tim, who have each made an 
outstanding contribution to the success of Sainsbury’s and we wish them all 
the very best for the future.
Final thoughts
I would like to thank all of my colleagues; you are at the heart of everything 
we do at Sainsbury’s and your dedication to serving and helping every 
customer is critical to the long-term success of our business. 
I also want to thank the Operating Board and Simon for their huge efforts 
and support over the past year. There is no clearer demonstration of the 
ability of this management team to execute than the progress the business 
has made in the last three years. The Board and I have seen the impact this 
has made throughout the organisation. When I look to the new Next Level 
Sainsbury’s strategy we’ve set out, it is ambitious but it is also grounded in 
the progress we’ve made and I have every confidence in the ability of Simon 
and his team to deliver.
Martin Scicluna
Chair
24 April 2024

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4  J Sainsbury plc Annual Report and Financial Statements 2024
Chief Executive’s letter
As we embark on the next 
phase of our strategy, 
Next Level Sainsbury’s, 
Simon Roberts reflects on 
the last three years, why 
food is now firmly back at 
the heart of Sainsbury’s 
and how we are delivering 
for customers, colleagues, 
communities and 
shareholders.
When John James and Mary Ann Sainsbury opened their very first store in 
1869, their purpose was clear: to provide good quality food at affordable 
prices. More than 150 years later, I am proud to say Sainsbury’s has stayed 
true to these values. 
Over the last three years, we have reset the business and food is now firmly 
back at its heart. It’s from this position that in February, we launched our 
new purpose: We make good food joyful, accessible and affordable for 
everyone, every day. This is a clear statement of our intent and commitment 
about what Sainsbury’s is here to do consistently, every day. Above all else, 
it sets a high bar for our future ambition.
It is our purpose that has driven every decision we have made in building 
our strategy for Next Level Sainsbury’s – and we believe that to deliver on 
our plan and purpose means us taking a leading role in building a more 
resilient UK food system. We are, first and foremost, a food company and 
we know that making the difference here will be fundamental to ensuring 
we develop and grow our business for decades to come.
The last three years
Food First was all about refocusing and resetting Sainsbury’s core food business. 
And we have delivered. We have significantly improved our value, 
innovation, availability and service. More customers are now doing more of 
their grocery shopping with us and this is driving record market share gains 
and volume growth.
When we launched Food First in November 2020 we were just too expensive. 
Since then we have invested £780 million into lowering our prices, fundamentally 
resetting our competitive position. While some of this investment has been 
in specific response to support our customers through a period of higher 
food inflation, our major strategic focus since 2020 has been to consistently 
deliver much better value for all our customers. We have transformed our 
value position and significantly improved price perception with customers.
Nectar Prices has been a game changer, bringing market leading offers 
across our food and grocery range: launched in April 2023 with just a few 
hundred products, Nectar Prices are now available on around 7,000 products 
across our stores and online, saving customers £12 on a typical £80 shop. 
We have also continued to grow Aldi Price Match, now with over 600 products, 
at least 75 per cent of which are Healthy or Better for you products. Most 
recently, we launched our newest value proposition, Low Everyday Prices, on 
over 1,000 big brand products, giving customers the reassurance that 
whatever is in their basket and trolley, they can always be sure of great 
value at Sainsbury’s. 
£780m
investment in lowering prices 
over three years
Nectar Prices on around
7,000
products

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While significantly improving our value position, we have not compromised 
on quality. In fact, we have made a step-change in our quality and product 
innovation, launching over 4,000 new products over the last three years and 
at the same time reformulating, or improving, thousands more. Our Taste 
the Difference product ranges have been particularly popular with 
customers and sales have grown to £1.6 billion this year. Taste the Difference 
is proportionately the biggest premium own label brand of the full choice 
grocers and has contributed to our market outperformance through every 
key seasonal event of the year.
Over the last three years, our Brands that Deliver – Argos, Nectar, Tu, Habitat, 
Sainsbury’s Bank – have been refocused to ensure that they contribute 
positively in their own right and support our core food business. We have 
made real progress, but we still have further to go here. 
Argos has been through a major transformation in the past three years, moving 
from a catalogue business to become a digital-first retailer – we have 
integrated Nectar, improved our same-day coverage and now 70 per cent 
of Argos sales start online. As a result of these changes and in response to 
changing customer shopping behaviours, nearly 70 per cent of online 
Click & Collect orders are now available for immediate collection from over 
1,000 Argos collection points. All of this has enabled Argos to become a 
structurally more resilient business with a lower cost to serve than in 
previous years. We have taken more than three percentage points out of 
our costs to sales ratio and improved the core profitability of the business. 
The job of continuing to transform and improve Argos, of course, continues 
as this will always be a cyclical business. As technology and customer 
behaviour continues to change, there will always be more to do, which 
we are addressing through Next Level Sainsbury’s.
Looking to our other brands, our trading approach on Tu over the period of 
Food First has delivered a more profitable sales mix, with higher full price 
sales and stronger gross margins. However, clothing sales declined over the 
last year, given both the more promotional market dynamics and more 
periods of unseasonable weather. Some of our clothing ranges also weren’t 
where they needed to be and we had interruptions in availability in the final 
quarter. We have taken action to improve our ranges and availability as we 
look ahead. 
Turning to our Financial Services business, we announced in January a 
phased withdrawal from core banking, so while it is business as usual for our 
customers for now, the financial services we continue to offer in the future 
will be provided by dedicated financial services providers through a 
distributed model. 
We are really clear we are a food first, people first business. I am proud we 
again led our industry in improving colleague pay and in making the right 
decisions to support and invest in our people over the last three years. This 
is because we fundamentally believe that the more engaged our colleagues 
are, the better customer service we deliver and the more productive we can 
become. Our approach has led us to achieve improved customer satisfaction, 
ahead of our competitors over the last three years and more people are now 
choosing Sainsbury’s more often. 
Since 2018, we have increased colleague pay at Sainsbury’s by 50 per cent. 
In January this year we became the first full choice supermarket to 
announce we would pay colleagues £12 per hour nationally, £13.15 in London. 
This brings our rate of pay in line with the new Real Living Wage and takes 
our three-year total investment in colleague pay to over £500 million. 
We also announced that we would extend free food during shifts and 
increase the frequency of additional colleague discounts. 
Having a diverse workforce is so important to us. Three years ago we set 
ourselves ambitious gender and ethnicity targets because it matters that 
Sainsbury’s is a place where everyone can thrive and where our leadership 
reflects the colleagues and communities we serve. While we haven’t met 
all of our targets given the high bar we set, I am pleased to report we have 
made significant progress. Representation of women, ethnically diverse and 
black colleagues in senior leadership have all increased and we were one of 
only two retailers in the Times Top 50 list for gender equality. There is clearly 
still much more to do in working to build on our industry leading position 
and we will be setting out our gender and ethnicity targets for the next 
three years as part of Next Level Sainsbury’s. 
We are a food first, 
people first business. 
Simon Roberts
Chief Executive
We have increased  
colleague pay by
50%
since 2018
We work with over
15,000 
British farmers

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6  J Sainsbury plc Annual Report and Financial Statements 2024
Chief Executive’s letter continued
The last three years continued
Turning to our suppliers, we recognise the significant pressures faced in 
food supply chains, particularly with our farmers and growers. We work with 
over 15,000 British farmers, sourcing £2 billion worth of produce every year 
– and our close relationships give us real insight into the issues they are 
facing. From increasing business operating costs and climate change to 
policy challenges, we are committed to working together with our suppliers 
to build resilience in their businesses, benefitting not just our supply chain 
but ultimately, the resilience of the UK food system. That’s why, over the 
past two years, we have moved increasingly to offering longer term 
contracts with a number of our key suppliers, providing them with the 
security they need to plan and invest in their businesses. We are also 
working in collaboration with many of our suppliers on new and emerging 
methods of production and with new technologies, allowing us to develop 
better surety of supply, while helping us towards achieving targets across 
our Plan for Better. For example, working with ABP Food Group and more 
than 540 trusted British farmers, in September we launched a new, first to 
market reduced carbon beef range, offering high quality, great tasting 
steak, with 25 per cent reduced carbon compared to the industry average.
I’ve addressed the investments and the consistent and balanced choices we 
have prioritised for our customers, colleagues, suppliers and communities 
over the last three years. None of these would have been possible without 
the significant cost savings delivered through our Save to Invest programme. 
We have achieved the £1.3 billion of cost savings we targeted since March 
2021, doubling the rate of cost savings compared to the three years prior to 
Food First. 
We have transformed and simplified our logistics operations and continued 
to implement leading automation and machine learning into our food 
supply chain, with new systems driving end-to-end efficiencies, reducing 
manual tasks and leading to better outcomes across supply chain, 
commercial and retail teams.
We made clear choices and deliberate investments over the course of our 
Food First strategy to become a more profitable and sustainable business, 
doing the right thing for our customers, colleagues and suppliers while 
ensuring we deliver for our shareholders. More customers are doing more 
of their shopping with us, we have more engaged and productive colleagues 
and strong relationships with our suppliers and partners. We continue to 
invest where it matters, growing our volumes and market share versus our 
key competitors and delivering strong financial results, creating long-term 
value for our shareholders.
Moving to the Next Level
Our updated strategy, Next Level Sainsbury’s, is driven by our reset and 
refreshed purpose. Underpinning our strategy are four outcomes: First 
choice for food, Loyalty everyone loves, More Argos, more often and Save 
and invest to win. These build on the success of our Food First strategy and 
ultimately, will give customers more of what they come to Sainsbury’s for 
– outstanding value, unbeatable quality and great service.
First choice for food 
While Food First was about refocusing and resetting back on the core food 
business, First choice for food represents a very different ambition to bring 
more customers to do more of their shopping with us. Currently, only 15 per 
cent of our 600 supermarkets offer our full food range and so our key focus 
is investing to bring more of our range to more customers. We will be adding 
more chilled space to offer more choice from our fresh food range and 
improving the look and feel of 180 of our highest potential stores. Through 
making more of our food range available to more of our customers, we have 
a unique opportunity to drive grocery volume gains by becoming first choice 
for more customers.
Within the 180 stores, we will tighten the range and space allocated to 
general merchandise , aligning our offer more closely to customers’ 
grocery shopping missions. By providing customers with more of the 
right products they want and in combination with improved profit 
densities from food, we will generate significantly better sales and 
profit returns from our store space. 
We will also build on the strength of our supermarket locations and 
customer traffic, by investing in our Smart Charge ultra-rapid EV charging 
network. We launched Smart Charge at 40 supermarkets this year and will 
increase our network over the new financial year as we build on the strength 
of our supermarket locations and customer traffic, helping customers to 
reduce their carbon emissions. 
Over the last three years, we have fully integrated our Plan for Better into 
the way we operate and work as a business to drive improved customer, 
commercial and sustainability outcomes – and in the way we partner with 
our suppliers. Our new purpose is about how we show up for customers, how 
we do business and how we work right across our industry. The UK food 
system requires significant change – we all know that – and we’re committed 
to play a leading role in improving it, focusing on how we source our 
products and how we help our customers to have access to good food. 
Over the next three years, we are making a clear commitment to enable and 
drive food system change, collaborating with all parts of our industry, our 
suppliers and policy makers to begin to realise the change we need to see.
Loyalty everyone loves 
Our Nectar ecosystem is split in two halves: our customer-facing Nectar 
loyalty scheme, rewarding customers with pricing and reward points to be 
spent at Sainsbury’s or with one of our nine redemption partners, and 
Nectar360, our fully integrated loyalty, insights and media services agency. 
Over the last three years, we have made strong progress in developing 
our Nectar loyalty scheme, moving towards a more digital customer 
experience and building our personalisation capability. However, the 
major transformational change has been the introduction of Nectar Prices, 
which has been one of the key drivers in our improved value perception. 
We are learning more about the importance of loyalty in grocery for 
customers and we have a clear plan to continue growing and strengthening 
Nectar within our business, increasing personalisation, improving digital 
integration and growing the coalition, while always remaining transparent 
with customers over how we use their data.
Our retail media business, part of Nectar360, allows brands to advertise 
to our customers in a tailored way to ensure both brands and customers 
benefit. We believe retail media has huge untapped potential in the UK and 
we aim to build on our first-mover advantage and become world-leading in 
our capabilities. We expect Nectar360 to deliver an incremental £100 million 
of profit contribution over the next three years.
More Argos, more often 
We have been progressing well with our plans to transform Argos, 
significantly reducing the standalone store estate and opening many 
more Argos stores and collection points inside Sainsbury’s making it a 
more profitable business. We have also made changes to how and where 
we move and hold our stock, driving efficiencies through our local 
fulfilment network and making sure we have the right stock close to 
customers, at the right time. 

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Looking ahead, we have a real opportunity. Half of households in the UK 
shop with Argos and the customer feedback on what is most important is 
clear: value, convenience and ease. But we are not always front of mind for 
customers. By providing a more inspiring range of desirable brands and 
design-led own label and encouraging more frequent browsing occasions, 
we have ambitions to grow customer basket sizes, frequency of visits and 
encourage customers to shop across our full range of products. We also 
have plans in improving our digital proposition, increasing awareness of 
our market-leading Click and Collect service and will be continuing our 
programme of transforming our operating model, benefitting customers 
while providing efficiencies in our business.
Save and invest to win 
Our Save to Invest programme has been at the very heart of delivering Food 
First, creating the fuel to reinvest back in the customer proposition and reset 
our value position. We’ve changed the way this business approaches cost 
and we’ve made bold decisions as a team about what really matters, 
doubling the rate of our cost saving delivery. 
We achieved some big structural wins early in Food First, saving £1.3 billion 
over the course of the strategy, and we will continue this momentum with 
our new Save and invest to win outcome.
We’re confident we can maintain our current run rate of cost savings, and 
so unlock another £1 billion worth of cost savings over the next three years. 
Our high returning investments in technology and automation will drive 
big steps forward in our efficiency and in improving what we deliver for 
customers. We’ve signalled before that we will be unlocking productivity 
benefits more and more through these end-to-end programmes, taking cost 
out of an entire cross functional chain of costs, rather than just looking at 
siloed divisional savings. 
We enter this next phase of 
our strategy with a clear plan, 
strong momentum and the 
necessary focus to realise 
our goals, deliver for our 
customers, colleagues, 
communities and shareholders 
and take Sainsbury’s to the 
Next Level.
Simon Roberts
Chief Executive
And it’s not just cost and productivity that are benefitting: Plan for Better 
targets are integrated across all our outcomes. We are rolling out the latest 
in integrated refrigeration and heating technology, removing the need for 
fossil fuel gas heating and running on natural CO2 refrigeration. We have also 
committed to buy 100 per cent of the electricity produced by Longhill Burn 
Wind Farm, which when all turbines are operating at maximum capacity has 
the capability to power up to 33 per cent of our estate. We have also started 
to roll out double-decker trailers in our fleet, which will reduce the number 
of vehicles on the road, thereby reducing our carbon footprint, while 
maintaining the same levels of stock movement.
Save and invest to win is about driving more cost out of our business, 
improving our people and technology capabilities, fuelling investment 
in our customer proposition and as a result, improving our performance. 
In moving to the next level, we are making strategic and deliberate choices 
to invest capital in a very targeted way and with a clear focus on unlocking 
further efficiency, driving new capabilities and productivity and enabling 
our growth.
Taking Sainsbury’s to the Next Level
We firmly believe that our plan for the next three years will lead to strong 
delivery and returns for our shareholders. We are also committing to a 
progressive dividend policy from the start of 2024/25 and to the start 
of a share buyback programme, with £200 million of share capital to be 
bought back over the course of the year. 
We have a fantastic team right across Sainsbury’s. Our people are at the 
heart of everything we do and I want to thank every one of my colleagues 
for the brilliant job they do in delivering for our customers, supporting each 
other and looking after this business. 
I feel inspired by our renewed purpose, to make good food joyful, accessible 
and affordable for everyone, every day. And to deliver on this, we will be 
ambitious and proactive in collaborating with all our stakeholders to drive 
the change that will enable a more resilient UK food system. 
We enter this next phase of our strategy with a clear plan, strong 
momentum and the necessary focus to realise our goals, deliver for our 
customers, colleagues, communities and shareholders and take Sainsbury’s 
to the Next Level.
Simon Roberts
Chief Executive 
24 April 2024

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8  J Sainsbury plc Annual Report and Financial Statements 2024
Our business model 
We make good food joyful, accessible 
and affordable for everyone, every day
We want to be first choice for food, attracting many more people to choose Sainsbury’s as the place they come to for good food 
– and play a leading role in creating a sustainable food system in the UK. We create value for stakeholders by building on the 
heritage and scale of our food business and our strong assets. Everything we do is underpinned by data and technology 
innovation. And the infrastructure that supports our brands enables us to drive value and efficiency. 
  Find out more about Plan for Better  
on page 15
Building on our brand and strong assets
Sainsbury’s 
brand and own 
brand heritage
Scale 
advantage 
Second largest 
full choice 
supermarket
Reputation for 
service, quality 
and range
Growing 
customer base
Volume growth
Nectar and 
Nectar360 
investment in 
loyalty and 
personalisation
Financial 
strength
Strength in  
real estate  
and online scale 
and capability
Strong supplier 
relationships
Winning culture 
and higher 
productivity
Underpinned by data, technology innovation and capability
Our Plan for Better is integrated into everything we do and critical to building 
long-term resilience in our business and across our supply chains. We are committed 
to playing a leading role in creating a more sustainable UK food system. 
Creating value for our stakeholders
Customers
Colleagues
Communities
Suppliers
Shareholders

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J Sainsbury plc Annual Report and Financial Statements 2024  9
The Sainsbury’s difference 
Sainsbury’s brands
Sainsbury’s is a trusted, well-loved brand that has been bringing 
high quality, great value food to customers for over 150 years. 
Argos, Nectar, Tu, Habitat, Smart Charge and Sainsbury’s Bank are 
complementary brands and give customers more reasons to shop 
with us.
Scale advantage
We offer customers a choice of quality products. We have scale 
positions in both food and general merchandise and can profitably 
deliver a wide range of products and services to customers. Our scale 
also gives us the unique ability to drive collaboration and action 
towards a more sustainable UK food system.
Reputation for service, quality 
and range
Customers come to Sainsbury’s for our outstanding customer service 
and our 148,000 colleagues are integral to our long-term success. Our 
consistent quality, responsible sourcing and tailored assortment in 
each store provides customers with everything they need.
Growing customer base
Sainsbury’s is a trusted brand, loved by millions of customers 
across the UK. We serve an attractive, growing customer base. 
Around 70 per cent of the UK population have shopped with 
Sainsbury’s over the last year with a bias to a more affluent 
sociodemographic than key competitors.
Volume growth
The investments we are making, particularly in our fresh food range, 
are helping us to continually grow grocery volumes ahead of the 
market, driving profit leverage. 
Nectar and Nectar360
Nectar aims to be a world-leading loyalty programme and provides 
a vital competitive advantage to our food business, our brands and a 
wide range of partners. It has strong profit growth prospects through 
data monetisation and growing coalitions. It enables us to offer our 
customers personalised, joyful rewards for their loyalty. We are 
committed to a transparent use of data.
Financial strength
Our strong financial position allows us to reinvest in our customer 
offer and make targeted investments in areas like technology, while 
also paying dividends and strengthening the balance sheet.
Strength in real estate and 
online scale 
Our stores are well-placed, with a strong presence in the South and in 
high footfall convenience locations. This helps us offer customers 
complementary products, through Tu, Argos, Habitat and carefully 
selected concession partners, as well as complementary services 
such as Smart Charge. 
We continue to improve the productivity of Groceries Online, 
consistently improving the speed of items picked. Last year, Argos 
was the UK’s fourth most visited retailer website; we are making good 
progress to reduce the number of Argos standalone stores we have 
and to offer more Argos stores inside Sainsbury’s stores.
Strong supplier relationships
We are proud of our strong supplier relationships and we work 
collaboratively with them over the longer term to grow and 
strengthen the resilience of our business and theirs. By improving 
technology and simplifying processes we are making it easier for our 
suppliers to do business with us.
Winning culture and higher 
productivity 
We invest in our colleagues. By creating an engaged workforce that is 
invested in the progress of the business and the role they play in our 
success, and unlocking productivity benefits, we achieve high 
retention rates and deliver superior customer service.

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Our strategy
Purpose
Outcomes
Valued 
Behaviours

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J Sainsbury plc Annual Report and Financial Statements 2024  11
In February 2024, we set out our 
Next Level Sainsbury’s strategy, 
driven by our new purpose. 
Focusing on four key outcomes, our strategy is 
designed to give customers more of what they come 
to Sainsbury’s for: outstanding value, unbeatable 
quality food and great service. 
First choice for food
Attract many more people to choose 
Sainsbury’s as the place they come to 
for good food – and play a leading role 
in creating a sustainable food system 
in the UK
•	 More food choice for more customers
•	 Consistent value, every day
•	 The leader in freshness, availability and innovation
•	 A complementary range of relevant products and services
•	 A more resilient food system
More Argos, more often
Unleash and transform Argos around 
the three things that have always made 
it brilliant – curated range, famously 
convenient experience and great value 
– so more customers buy more 
complete baskets more often
•	 Famous for convenience
•	 Inspiring choice, always great value
•	 Supercharged digital capabilities
•	 Accessible and relevant credit, care and services
•	 Next level service, efficiency and stock flow
Loyalty everyone loves
Build a world-leading loyalty platform 
– more personalised, joyful, rewarding 
and transparent – for everyone
•	 Personalised, rewarding and integrated loyalty 
•	 Joy and connection beyond transactions
•	 World-leading Nectar360 capabilities
•	 Strong coalition of partners
•	 Always transparent use of data 
Save and invest to win
Save £1 billion and invest in 
transforming our capabilities – taking 
another big leap forward in efficiency, 
productivity and customer focus, 
continuing to build a platform 
for growth
•	 £1 billion of structural cost reduction
•	 Well-invested technology platform protecting, competing 
and unlocking the next level
•	 Simplified, automated, more process-led business
•	 Right-sized organisation, set up to win
Plan for Better
Our Plan for Better is fully integrated through the way we operate 
as a business to deliver commercial and sustainability outcomes. 
  Find out more about Plan for Better  
on page 15

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Delivering on our outcomes
In February we announced our Next Level Sainsbury’s strategy, building on 
the success of the Food First strategy launched in 2020. Food First put food 
back at the heart of Sainsbury’s, reset our competitive position and created 
a strong financial platform from which we will grow, invest in further 
strengthening the business and deliver enhanced returns to shareholders. 
Next Level Sainsbury’s is underpinned by a new purpose: We make good 
food joyful, accessible and affordable for everyone, every day. The strategy 
focuses on four key outcomes: First choice for food, Loyalty everyone loves, 
More Argos, more often and Save and invest to win. 
First choice for food
Our work on improving value, innovation and service has driven volume 
market share gains over the course of our Food First plan. Our performance 
was particularly strong over the last financial year, with volume growth 
every quarter and at an accelerating rate of growth. More customers are 
choosing Sainsbury’s and we are growing primary and secondary customers 
ahead of all full choice competitorsa). 
Value that sticks
We reset our pricing position over the course of Food First, investing £780 million 
to improve our value versus all competitors. We are now the most competitive 
we have ever beenb) and we are gaining volumes from all key competitorsc). In 
2023/24, we invested £220 million in lowering prices on the products customers 
buy most often and we passed on less inflation than our competitorsd). We also 
launched Nectar Prices in April 2023, rapidly rolling out to around 7,000 products 
over the year. Customers are noticing, with value perception scores improving 
through the year and now the strongest they have been for six yearse). 
In January we doubled the number of products price matched to Aldi, with 
over 600 products now included across fresh, grocery and household ranges. 
We also made it easier for customers to identify lower prices in store by 
moving all of our entry price point products into a single brand, Stamford 
Street and by introducing Low Everyday Prices, which has replaced Price Lock 
and includes over 1,000 products, primarily branded. 
Innovate to lead
We are being bold and ambitious on innovation, bringing more new products to 
customers. We launched over 4,000 products over the course of Food First and 
grew our Taste the Difference brand from £1.2 billion in 2019/20 to £1.6 billion in 
2023/24. We launched nearly 1,200 new products in the year, 40 per cent of those 
in Taste the Difference, growing the Taste the Difference range by 7 per cent 
year-on-year. More customers are choosing to treat themselves: sales of our 
Premium tier grew 12 per cent year-on-year and significantly ahead of the 
marketf). Ready-prepared meals, Bakery, Food to Go and FreeFrom all performed 
particularly well. 
Customer favourites across the year included our Taste the Difference 
Mushroom, Mascarpone and Truffle Pizza, our Signature Beef Burger and at 
Christmas, our Buttermilk Turkey Crown with maple cured bacon and buttery 
sage and onion stuffing. 
We consistently outperformed the market at every seasonal eventg), finishing Q4 
with a strong Valentine’s Day, with standout sales across flowers, confectionery 
and our Taste the Difference meal deal, which was the best value in the market. 
We are well set up to continue our momentum in events and began 2024/25 with 
a record-breaking Easter week, performing ahead of the marketg) with our 
biggest ever Easter grocery sales. 
A more resilient food system 
Our strong, long-term relationships with suppliers put us in a strong position 
to play a leading role in creating a resilient and sustainable food system in the 
UK. We continue to make investments and changes to the way we work with 
and support British farmers. This year, for example, we have introduced a cost 
model with a predictable margin for our potato suppliers, working closely 
together to protect supply. On a global scale, working in collaboration with 
longstanding partner Fairtrade, we are contributing towards paying banana 
workers a living wage three years ahead of the industry commitment. 
Alongside this, we are increasingly moving to more long-term partnerships 
with key suppliers to enable them to invest for the future with confidence. 
For example, in March 2023 we began a new long-term partnership with 
Moy Park which has provided our chickens with 20 per cent more space than 
industry standard along with environmental enrichments such as perches and 
play bales. Results indicate that our birds are happier and more comfortable. 
We have made this change while keeping our price position as sharp as ever 
and our chicken market share has grown since launchh). 
We were the first large supermarket to launch a dedicated ‘Best of British’ 
page on our Groceries Online website, better championing British grown and 
produced products. The page highlights over 450 products which are 100 per 
cent British sourced, including popular fruit, vegetable, meat, dairy, eggs 
and chilled essentials.
More food choice for more customers
Our strengths in fresh food, range and innovation are at the heart of 
Sainsbury’s heritage and brand promise, Good Food For All Of Us. However, we 
do not currently offer our full range to enough customers in enough locations, 
with just 15 per cent of our supermarkets offering our full range. We are 
investing to bring more of our range to more customers, particularly 
enhancing choice in fresh food, focusing on around 180 of these highest-
potential stores over the next three years. While carrying out these changes 
we are also updating the look and feel of many stores and selectively 
introducing innovations which we have trialled in a number of stores in recent 
months, bringing customer and efficiency benefits.
We opened two new supermarkets in Q4, Talbot Green and Southport, both 
centred around a food hall designed to help customers rediscover the joy of 
food. Offering our full range, both stores also feature new digital signage 
and displays designed to help customers feel more inspired and make the 
stores easier to navigate. To support our Plan for Better targets, each store 
has a unified refrigeration, ventilation and heating system that removes the 
need for fossil fuel gas heating and runs on natural CO2 refrigeration, with 
100 per cent LED lighting throughout. These new supermarkets are 
performing significantly ahead of expectations. 
Products and services that complement the Food offer
We are tightening our general merchandise and clothing ranges, aligning 
them more closely to customers’ shopping missions. In combination with a 
more profitable food offer where it’s needed, this will generate significantly 
better sales and profit returns on store space. 
Tu clothing continued to maintain a disciplined trading approach in the year. 
Versus a 2019/20 base, this trading approach has created a more profitable 
sales mix over the last three years, with higher full price sales, significantly 
lower markdowns, stronger gross margins, higher average selling price and 
lower stock. This helped protect profitability over 2023/24 in a seasonally 
weak and promotionally-driven market. However, our performance during 
the year and particularly the fourth quarter, when we were further impacted 
by stock shortages, was below expectations and we have taken action to 
improve ranges in the year ahead. 
We continue to expand our Habitat range, with our new home fragrance 
collection performing ahead of expectations. Looking ahead, Habitat will 
celebrate its 60th birthday in May with an innovative 60 Years of Design 
collection in partnership with designers including Sebastian Conran, son of 
Habitat’s founder. 
In January, we launched our Smart Charge ultra-rapid EV charging network, 
now in 45 supermarket locations with 371 charging bays. Smart Charge 
provides a quick and reliable offer using 100 per cent renewable energy. We 
will build further on the strength of our supermarket locations and customer 
traffic, investing in Smart Charge to increase our network of reliable 
ultra-rapid charging bays. 
Engaged colleagues deliver leading customer service 
In January we announced that we would be investing £200 million to increase 
colleague pay in line with the new Real Living Wage, increasing pay to £12 per hour 
nationally and £13.15 for colleagues in London; leading the market and taking 
our investment in colleague pay over three years to more than £500 million. 
Over the course of Food First, we have improved our colleague engagement 
scores by nine percentage pointsi). We believe more engaged colleagues 
deliver better service, and our overall customer satisfaction scores were ahead 
of full choice competitors in the year, leading in areas including speed and 
ease of checkout and friendliness and availability of colleaguesj). 

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Convenience sales grew ten per cent, with overall customer satisfaction improving 
by five percentage pointsk). We grew Groceries Online ahead of the market in the 
second halfl), supporting our strong grocery sales momentum. Increased 
customer numbers are driving higher sales volumes and we have improved 
customer satisfaction and retention through better availability and the launch of 
Your Nectar Prices on Groceries Onlinem). We have expanded our On Demand 
business to 1,157 stores, resulting in 69 per cent sales growth year-on-year. 
We are always looking for ways we can improve customer experience while 
saving money to invest back into our product offer. We have made significant 
progress in our programme of automating some simple customer services 
functions to provide a more seamless customer experience and free up 
colleague time to provide customers with better service. 
Plan for Better 
Plan for Better is at the heart of how we will deliver our new purpose, to make 
good food joyful, accessible and affordable for everyone, every day. We are 
committed to playing a leading role in offering affordable, high quality food 
that supports healthy and sustainable diets and helps customers reduce their 
impact on the planet. We know how important it is for our customers, 
colleagues, communities and shareholders that we deliver on our Plan for 
Better goals. We are making good progress on our plan, investing in resilient 
supply chains and continue to make progress towards our targets. 
We have a long history of providing good food and leading change to help 
our customers eat healthier, more sustainable diets. Our Healthy and Better 
for you sales tonnage as a proportion of total sales is at 80.9 per cent and we 
recognise there is more to do as we work towards our target of 85 per cent 
by 2025. Our progress is reflected in our market outperformance of Produce 
volume salesn), the fact that 87 per cent of our own-brand sales are Healthy 
and Better for you choices and that our primary customers rate us ahead of 
our competitors for making it easy for them to choose food that is healthy. 
We have also designed our value offering to complement this work and this 
year at least 75 per cent of our Aldi Price Match campaign featured Healthy 
or Better for you products like fresh produce, wholewheat pasta, salmon and 
alternative milk products. 
Plastic reduction initiatives launched in the year will save nearly 1,800 
tonnes of plastic per year and we reduced relative plastic packaging by 
2.8 per cent year-on-year and 12.9 per cent relative reduction from our 
baseline. We became the first UK retailer to switch from plastic to paper 
packaging across our entire own-brand toilet paper and kitchen towel 
ranges, saving 485 tonnes. Other plastic saving initiatives included leading 
the market in changing our range of babywear to cardboard hangers and 
reducing plastic in meat packaging ranges. 
In the last year, we raised £36 million for good causes and redistributed 57.8 
per cent more surplus food to communities through our partnership with 
Neighbourly. Over the course of this partnership, we have donated over 
23 million meals to communities. Our stores now support and donate to 
over 2,500 good causes across the UK. We also moved from use-by dates to 
best-before dates across our own-brand milk range, helping reduce food waste 
and impacting 730 million pints of milk sold by Sainsbury’s every yearo). 
We have restated the 2022/23 result for food waste to anaerobic digestion 
reported in the 2022/23 Annual Report from 23,443 tonnes to 30,399 tonnes 
due to an identified reporting error. The 2019/20 baseline is restated from 
31,615 tonnes to 34,609 tonnes. This means that in 2022/23 we reduced 
absolute food waste by 12.2 per cent rather than the 25.8 per cent reported 
versus our 2019/20 baseline. This year we have reduced food waste to 
anaerobic digestion by 12.5 per cent absolute and 13.9 per cent relative to total 
tonnes handled versus our 2019/20 baseline. We are focused on accelerating 
our progress and have put in place a number of new measures including a 
partnership with Olio to redistribute ‘use by’ foods from all of our stores and 
are extending trials on new ways to repurpose food waste for animal feed.
We are building the resilience of our business and accelerating our emission 
reduction commitments. In February, our revised commitments for lowering 
greenhouse gas emissions in our own operations and in our value chain were 
formally validated by the Science Based Targets initiative. In the same 
month, the Carbon Disclosure Project awarded us an A rating for our 
environmental commitments on climate change for the tenth consecutive 
year – the only UK supermarket to be recognised at this level. 
Loyalty everyone loves
We are continuing to build a world-leading Nectar loyalty platform, offering 
personalised, rewarding and integrated loyalty and market-leading retail 
media capabilities. This platform has been a key component in transforming 
our value offering and value perception. It has delivered ahead of our plan 
and is playing an ever-greater role for customers and within our business, 
with over 17 million digital subscribers.
We launched Nectar Prices in April last year and rapidly rolled it out across 
our ranges. It is now available on around 7,000 products and is saving customers 
an average of £12 on a typical £80 shop. The customer response to Nectar 
Prices has exceeded our expectations, strengthening value perception and 
driving Nectar participation levels, with more than five million new Nectar 
Digital Collectors since launch. In October, we also introduced Your Nectar 
Prices on Sainsburys.co.uk and our grocery app, with plans on track to roll 
this out more widely. Your Nectar Prices is powered by Nectar’s personalised 
offers which are world-leading in their scale, generating over 280 million 
different personalised offers each week. 
Nectar360 is well positioned within the fast-growing UK retail media market, 
with a scaled dataset and deep media capabilities. Nectar360 serves over 
870 brands directly and has built partnerships with the 10 key agency 
groups. Over the last year we signed two new partners, allowing advertisers 
to better target campaigns and launching a new supply chain data sharing 
and insight platform for our suppliers. We also announced the expansion of 
our connected digital screen network to over 800 screens. To continue to 
build stronger digital engagement and deliver even more value to Nectar 
customers, we are investing in high return growth by expanding our team 
and unifying our capabilities across instore, onsite and offsite. As we 
continue to build our coalition of strong partners, we are also investing 
further in the integration of Nectar across all our digital platforms and into 
payment solutions. 
Our Next Level Sainsbury’s strategy will continue to build a world-leading 
loyalty platform – one that’s even more personalised, joyful, rewarding and 
transparent – for everyone. We expect to generate an incremental £100 million 
of Nectar360 profit contribution over the three years to March 2027.
More Argos, more often
We are focused on transforming Argos around the three things that have 
always made it brilliant – curated range, famously convenient experience 
and great value – so that more customers buy more complete baskets more 
often. Over the last three years, we have significantly improved Argos’s 
profitability by transforming our store operating model, reducing the 
standalone store estate and opening more Argos stores inside Sainsbury’s. 
This has reduced the fixed cost base while expanding the number of points 
where customers can conveniently collect products. 
Argos sales and gross profit last year were impacted by poor seasonal weather 
against tough comparatives in challenging market conditions, but lower fixed 
costs helped reduce the impact of weaker sales on Argos profitability. 
Famous for convenience
Customers love and recognise Argos for the convenience and consistently 
great value we provide and this has remained at the heart of the Argos 
proposition over the last year. Half of UK households shop at Argos every 
yearp) and we have the fourth most visited retail website in the UKq). More 
than 70 per cent of sales start online, 70 per cent of sales are collected in 
store and nearly 70 per cent of online Click and Collect orders are available 
for immediate collection. Over the next three years our focus will be on 
building customer awareness of our great service and convenience, with 
an ambition to drive greater frequency of customers shopping with Argos. 

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Delivering on our outcomes continued
More Argos, more often continued
Inspiring choice, always great value
Our aim is to inspire customers to shop bigger baskets with Argos more 
often by continuing to improve our ranges and enhance customer experience. 
Gaming remains a strong contributor to growth, powered by strong Black 
Friday deals, consistent availability and continued demand for hardware 
and accessories. Mobile phone sales have also been strong, particularly 
iPhones, where we have had better stock allocations and as a result have 
grown market share. Premium product sales continue to perform well. 
Argos’s key brand health metrics significantly increased versus last yearr) 
and customer satisfaction improved over the course of the year in appealing 
promotions, value for money, quality and variety of itemss).
Supercharged digital capabilities
We are supercharging Argos’s digital capabilities by further developing the 
website, app and customer relationship management capabilities, with the 
aim of driving traffic, basket spend and conversion. We continue to improve 
the digital customer journey by testing new promotional and personalisation 
mechanics and enhancing search and browsing experiences – making 
checkout easier and faster. We recently re-launched our delivery checkout, 
providing a better customer experience and more stable platform.
Accessible and relevant credit, care and services
Having the right range of accessible and relevant credit solutions is 
important to help our customers buy what they want, when they want it. 
We announced in January the completion of a strategic review of our 
Financial Services division which will over time result in a phased withdrawal 
from our core banking business. Whilst financial services will continue to be 
an important part of the Argos proposition, we expect to move to third party 
provision of Argos financial services products, improving the range and 
quality of payment solutions we can offer customers and increasing 
penetration, currently 21 per cent of sales.
Next level service, efficiency and stock flow
We have significantly transformed Argos to be a digital first business and 
have integrated Nectar. At the same time, we have moved from standalone 
stores towards a store-in-store model, increased the number of our collection 
points and continued to build a market-leading fulfilment network, as well 
as completing our withdrawal from the Republic of Ireland.
We have made significant changes to how and where we move and hold 
stock, driving efficiency and improving availability by making sure we have 
the right stock closer to customers when they need it. The next phase of our 
store operating model refinement is moving to a clustering model, which 
will replace a one-size-fits-all approach. This approach will unlock efficiencies 
and reduce operational complexity. As a result, we will have better tailored 
ranges, availability and service, delivering cost-to-serve reductions 
alongside improved customer satisfaction. An example of this is our 
Croydon store, where we’ve already moved from three floors to one, 
resulting in faster service and improved customer satisfaction.
Save and invest to win
We have delivered £1.3 billion in savings over the last three years – double 
the rate of savings during Food First compared to prior years which has been 
central to the delivery of our strategy. This has created the fuel to invest in 
what matters for our customers and has reset our value position. In the next 
three years, we will create a further £1 billion in savings, more than 
offsetting cost inflation and taking another big leap forward in efficiency, 
productivity and customer focus. 
Our investments in technology and automation are driving big steps 
forward. More agile, flexible systems are bringing greater efficiency to 
decision-making and accelerating the speed at which we can improve 
customer experience. For example, we are unlocking significant savings 
through accurate real-time grocery forecasting that optimises the sales, 
waste and stock equation. 
We have already migrated all of our ambient grocery products to machine 
learning forecasting, resulting in availability gains of 170bps year-on-yeart) 
– the equivalent of 150 more products available in each of our supermarkets, 
driving up basket size. We are underway with rolling this out across our 
Fresh ranges, with the migration due to be completed by Summer 2024.
We are also simplifying our technology processes using cloud technology. This 
is helping with allocation and replenishment processes, enhancing customer 
personalisation and rewards and supporting the safety and stability of our 
ongoing operations. By automating some of the processes within our contact 
centre, we are delivering a more seamless customer experience and faster 
resolution times, while saving colleagues’ time. 
We are making bold decisions on business structure and propositions. 
We are simplifying our Store Support Centre structure and looking at 
where we can work more effectively with third party partners. We are also 
making good progress on the programme we began in 2022 to transform 
our eat-in, takeaway and home delivery food and drink offer, with fewer 
Sainsbury’s cafés and more third-party outlets.
A smaller proportion of cost savings will be driven by structural changes in the 
future, but we continue to transform our food service offerings to reduce cost 
and complexity across our business while enhancing our customer offer. For 
example, leading the market on freshly baked goods is an important part of our 
ambition to be First choice for food. We are well underway with a programme to 
move many stores to a more efficient way of freshly baking products in-store, 
improving range and quality but also unlocking significant savings.
Plan for Better is fully integrated into our Save and invest to win initiatives. 
We are rolling out the latest integrated refrigeration and heating 
technology, delivering both a saving on energy and helping reduce our 
carbon footprint. The Longhill Burn Wind Farm was completed in August 
and the wind turbines are the largest and most powerful onshore in the UK. 
When all the turbines are operating at maximum capacity together they can 
provide enough electricity to supply up to 33 per cent of our total electricity 
needs. We have also started to roll out double decker trailers in our fleet, 
which will reduce the number of vehicles on the road, thereby reducing our 
carbon footprint, while maintaining the same levels of stock movement.
a)	 Nielsen Panel data. Total FMCG excl. Kiosk and Tobacco. Customer numbers YoY growth, 
52 weeks to 2 March 2024
b)	 Value reality, 2023/24; Acuity, internal modelling. Data available from 2016
c)	
Nielsen Panel data. Total FMCG excl. Kiosk and Tobacco. Sainsbury’s to/ from net volume 
switching, 52 weeks to 2 March 2024
d)	 Nielsen Panel data. Total FMCG excl. Kiosk and Tobacco. Top 100 SKUS Average 4 weekly 
Trended ASP (Average Selling Price) vs Total Market - 52 weeks to 2 March 2024
e)	
YouGov Brand Index – Supermarket Value for Money Perception metric %
f)	
Nielsen Panel Premium Own Label Volume Growth YoY - Total FMCG excl. Kiosk and 
Tobacco. 52 weeks to 2 March 2024
g)	 Nielsen EPOS data. JS volume growth YoY% difference to Total Market growth YoY% for 
key events week growth versus last year events week 
h)	 Nielsen Panel data, volume market share % growth YoY, FY23/24 vs FY22/23, Chicken category 
(raw chicken)
i)	
eSAT scores March 2024 vs April 2021
j)	
CSAT Supermarket Competitor Benchmarking data – FY23/24 scores 
k)	 Lettuce Know Convenience customer satisfaction scores, FY23/24 vs FY22/23. Overall 
Satisfaction measure 
l)	
Nielsen, Sainsbury’s Online market share, 24 weeks to 2 March 2024
m)	 Lettuce Know Groceries Online customer satisfaction scores, FY23/24 vs FY22/23. Overall 
Satisfaction measure
n)	 Nielsen panel data, Produce category, volume growth YoY, 52w to 2nd March 2024
o)	 Includes all fresh and organic milk sold across England, Scotland, and Wales
p)	 Kantar Worldpanel. UK households vs ONS Total UK households 2022
q)	 SimilarWeb traffic share, 52 weeks to 2 March 2024
r)	
YouGov – General Retail Brand Health metrics
s)	
Argos E2E CSAT Survey
t)	
Q3 23/24 YoY improvement in availability

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Our Plan for Better sets out our sustainability goals across our whole business, outlining our priority areas of 
focus, our key commitments and our progress. We have aligned our focus to the UN Sustainable Development 
Goals and, through a materiality assessment, we have identified which issues matter most to our stakeholders 
so that we can make the biggest difference. Our plan has three interlocking pillars: Better for you, Better for the 
planet and Better for everyone.
We are committed to providing access to 
affordable, nutritious, diverse food to help make 
future generations and our planet healthier for 
longer. We believe everyone should enjoy good 
food and that means healthier, more sustainable 
diets for all.
In the face of the climate and nature crises, we 
need more leadership and collaboration than 
ever before. We are committed to playing our role 
in mobilising action across our value chain to 
protect and restore our planet.
We rely on people, locally and globally, to help us 
provide good food for the communities we serve. 
In a world of rising inequality, we are committed 
to championing human rights, ensuring fair 
treatment for both people and animals and 
creating a place where everyone can feel safe 
and supported.
Plan for Better
For over 150 years, providing 
affordable and good quality food 
for all has been at the heart of who 
we are and everything we do.
Today, we face significant global challenges, from climate 
change to social inequality to nature loss, and we need to 
do even more to build the resilience of our planet, our 
communities and our business.
Our Plan for Better
Our new purpose is to make good food joyful, accessible and affordable for 
everyone, every day. Delivering good food will only be possible by building 
resilience into our food system and only by collaborating across our industry. 
We need our many suppliers and partners to work together with us to build a 
resilient supply chain which enables us to offer good food to our customers, 
now and in the future. Without action, the challenges we already face such 
as climate change, resource pressure and biodiversity loss will become more 
intense and make our purpose increasingly difficult to achieve. Plan for Better 
sets out our ambition to play a leading role in creating a more sustainable 
food system. To create a new culture of collaboration and long-term 
partnership and enable a food system which supports farmers and growers, 
improves planetary outcomes, helps enable a healthier population, and 
drives economic growth and shared value across the system. 
We continue to support our colleagues, customers and suppliers, which is 
why we made further investments across the value chain this year. We supported 
our customers, making good food affordable through strong price investment 
and promotions such as Aldi Price Match, which included at least 75 per cent 
Healthy or Better for you choices. We supported our colleagues through our 
biggest ever single investment in colleague pay, well ahead of inflation and 
the government’s 2024 National Living Wage. 
And we supported our suppliers both in the UK and internationally, building 
security through investment and longer-term partnership contracts, 
launching our Making It Happen action groups to drive action in soil health 
and fertiliser use and contributing towards paying a living wage for banana 
workers in our supply chain three years ahead of industry commitments. 
We continue to drive action on our environmental agenda, and, this year, 
we accelerated our emission reduction targets to align with limiting global 
warming to 1.5°C. As part of this, we updated our targets to be FLAG (Forest, 
Land and Agriculture) compliant and they were approved by the Science 
Based Targets initiative (SBTi). For the tenth consecutive year, we achieved 
an A rating for Climate Change by CDP. We were also recognised in industry 
awards, becoming the first UK supermarket to win both the Marine Stewardship 
Council (MSC) UK Supermarket of the Year and Aquaculture Stewardship 
Council (ASC) UK Retailer of the Year awards.
Through innovation we are helping our customers to make more sustainable 
choices. We launched the largest low carbon beef range in the UK and started 
to roll out our new customer ultra-rapid EV charging offer. We also delivered 
our biggest ever plastic packaging removal across our whole mushroom 
range and introduced first to market plastic innovations, reducing relative 
plastic packaging by 2.8 per cent year-on-year (12.9 per cent reduction from 
our baseline).a)
To effectively respond to the challenges we are facing, we need to continue 
to work with industry to align on data measurement and capture, advocate 
for effective, evidence based policy change and work collaboratively across 
our supply chain and sector to build a more resilient food system for 
future generations.
a)	 Relative: removing volume impact.

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16  J Sainsbury plc Annual Report and Financial Statements 2024
Plan for Better continued
Our most material 
issues 
Target
Progress
Key achievements 
Healthy and 
sustainable 
diets
At least 85 per cent 
Healthy and Better for 
you sales tonnage sold 
by 2025
80.9%
of our sales are 
Healthy and Better 
for you 
Down 0.4% 
year-on-year
Down 1.4% versus 
baseline
•	 We outperformed the market on produce volume sales and 87 per cent of our own-brand 
sales are also Healthy and Better for you choices
•	 We are making healthier food more affordable, and this year at least 75 per cent of our 
Aldi Price Match campaign featured Healthy or Better for you products
•	 We are making healthier food more appealing, with customers who participated in our 
fourth Fruit and Vegetable challenge buying 113 million portions of fruit and vegetables, 
which was 25 million more portions than the year before. We also issued 278 million 
points through the app, which is 2.5x more than last year. Through trials, we have 
identified that incentives can be one of the most impactful ways to promote healthier 
choices however, customer behaviour remains challenging to change
•	 Since 2015, we have reduced our sugar tonnage by 35 per cent in the top five sugar 
contributing categories (biscuits, cakes, ice cream, yogurts and puddings) and 85 per cent 
of our products meet the salt maximum target for 2024
•	 We won the Food Foundation’s Peas Please Pledger Champion Award for 2023, which 
recognises our work to embed our pledge to grow, serve and sell more vegetables across 
our organisation
Reduce 
carbon 
emissions
Reduce absolute 
greenhouse gas 
emissions from our 
own operations to net 
zero by 2035
Reduce absolute Scope 
3 greenhouse gas 
emissions in line with 
1.5oC trajectory
458,973 
tCO2e
of absolute 
greenhouse gas 
(GHG) emissions 
from our own 
operationsa)
Down 0.6% year-on 
year
Down 51.7% versus 
baseline
6%
of our Scope 3 
emissions have SBTi 
1.5oC net zero targets 
approvedb)
•	 We accelerated our emission reduction targets to align with limiting global warming to 1.5°C 
•	 Our carbon reduction targets for FLAG (Forest, Land and Agriculture) and Energy/
Industry emissions were approved by SBTi
•	 We were awarded with an A rating for Climate Change by the CDP for the tenth 
consecutive year, as well as an A rating for supplier engagement
•	 We committed to buy 100 per cent of the electricity produced by Longhill Burn Wind 
farm, which when all turnbines are operating at maximum capacity, has the capacity to 
power up to 33 per cent of our estate
•	 We continue to engage our suppliers to understand their journey to net zero. In addition 
to 23 suppliers (six per cent of emissions) who have approved SBTi 1.5oC net zero targets, 
a further 68 (36 per cent of emissions) have committed to have approved targets within 
two years or have another target already approved by SBTi
•	 218 suppliers (63.8 per cent of emissions) have also disclosed their emissions through CDP 
and 683 (57.2 per cent of emissions) have done so for Higg and Manufacture 2030
•	 We continue to work with industry to agree an approach to accurately measure Scope 3 
emissions to enable us to report on our Scope 3 target
•	 We launched our new Taste the Difference Aberdeen Angus range, with a 25 per cent 
lower carbon footprint compared to industry standard, the largest low carbon beef range 
in the UK
•	 We launched Smart Charge, powered by Sainsbury’s, our ultra-rapid EV charging service 
with 343 charging bays across 40 Sainsbury’s stores
Reduce food 
waste
Reduce food waste by 
50 per cent by 2030
0.627%
of food handled sent 
to anaerobic 
digestionc)
Down 2.7% 
year-on-year
Down 13.9% versus 
baseline
•	 We removed all ‘use by’ dates on our milk (including all fresh and organic milk sold 
across England, Scotland and Wales) and have moved over to ‘best before’ to help 
customers reduce food waste in their homes
•	 We joined FareShare’s Alliance Manufacturing programme, part of the Coronation Food 
Project, to redistribute surplus food to charities across the country
•	 We redistributed 57.8 per cent more surplus food to communities through Neighbourly 
and our other redistribution partners and over the entire course of this partnership we’ve 
donated over 23 million meals worth of surplus food
•	 Due to a restatement of our food waste figuresd) we recognise the need to accelerate 
progress. We have run a successful trial with Olio to redistribute ‘use by’ foods, which 
we are now rolling out to all of our stores and we are extending trials on new ways to 
repurpose food waste for animal feed
Reduce 
plastic 
packaging
Reduce our own brand 
plastic packaging by 
50 per cent by 2025, 
increase recycled 
content and recyclability
58,379 
tonnes
of own brand plastic 
packaging
Down 2.8% relative 
year-on-yeare)
Down 12.9% relative 
versus baseline
•	 On an absolute basis, our own brand plastic packaging tonnage increased by 1.3 per cent 
year-on-year and declined by 16.4 per cent versus our baseline
•	 We launched our biggest ever plastic packaging removal, moving to cardboard trays in 
our whole mushroom range, saving 775 tonnes of plastic per year
•	 Firsts in the market including a move to paper packaging on our own brand of toilet rolls 
and kitchen rolls and a move to cardboard hangers in our Tu clothing baby range, saving 
485 and 103 tonnes of plastic per year respectively
Our progress this year 

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Future priorities
•	 Evolve our approach to ‘Healthy and sustainable diets’, finding new ways to 
grow sales of plant-rich choices (fruit and vegetables, fibre-rich carbohydrates, 
beans and legumes), improve protein diversity and grow sales of better protein 
and influence the system through sector advocacy
•	 Evolve our approach on plastic to consider the broader impact that different 
processes and materials involved in our products’ packaging have on the 
planet and take a leading role to drive action in the sector, working with 
industry to align behind the right solutions
•	 Develop our approach to protecting and regenerating nature, including 
responding to emerging frameworks and investing in landscape initiatives 
that protect and restore nature, while also supporting sustainable farming 
in areas where there is a high risk of deforestation or land conversion, 
including Brazil and Indonesia
•	 Develop roadmaps for each of our Human Rights commitments
•	 Accelerate action on food waste, reviewing our approach, across the whole 
value chain to drive progress and identify further opportunities
•	 Collaborate with our supply chain partners on our climate, nature and human 
rights efforts to drive further progress in building more resilient supply chains
•	 Build further on the strength of our supermarket locations and customer 
traffic, investing in Smart Charge to increase our network of reliable 
ultra-rapid charging bays throughout 2024/25
Nature 
positive
•	 We have made great progress on our percentage of wild caught certified seafood, now at 86 per cent, while our sustainably certified farmed 
seafood remained at 100 per cent. In recognition of our sustainable fish sourcing policy, we became the winner of both the Marine 
Stewardship Council (MSC) UK Supermarket of the Year and Aquaculture Stewardship Council (ASC) UK Retailer of the Year awards, becoming 
the only UK supermarket to have ever achieved this
•	 We published new policies for key raw materials: Manmade cellulosic fibres, Palm oil, Cotton, Leather, Precious metals and minerals, Feather and down
•	 We have collaborated with our suppliers, mobilising action through our new working groups to target specific priorities, including soil health 
and the rollout of LandApp across key supply chains, to enable UK suppliers and farmers to strategically plan land use to balance food 
production and nature into the future
Minimise 
water use
•	 We reduced our water usage in our own operations by 1.3 per cent year-on-year, to 2,621,341m³ through better management of water in our 
estate and through leak prevention
•	 We committed over £750,000 over the next three years of additional funding to accelerate the implementation and delivery of the WRAP 
water roadmap
•	 We improved our CDP rating to achieve an A- for water
Increase 
recycling
•	 We launched a new recycling hub trial that brings our recycling offer together for customers and removes duplication with kerbside collections
•	 This year, we launched furniture recycling for our online customers in partnership with Clearabee
Support our 
communities
•	 We raised £36 million for good causes this year
•	 Across our community initiatives, including our Nourish the Nation programme with Comic Relief, we donated £11.4 million to tackle food 
poverty and redistributed 13.5 million meals to those who most needed them through our partnership with Neighbourly
•	 Through our Community Grant scheme, we supported 798 local good causes and committed over £1 million to initiatives supporting our 
local communities
•	 We continued to test mechanisms to encourage low-income families to try healthier food options, including trialling a new coupon mechanic 
this year targeting low affluent customers to redeem of fruit and vegetable purchases
Improve 
animal 
health and 
welfare
•	 Our sales volume from welfare standards above the UK industry baseline was 62.3 per cent
•	 78.5 percent of our animal health and welfare outcome KPIs achieved Sainsbury’s KPI performance targets
•	 86.7 per cent of our key animal supply chains achieved Sainsbury’s responsible use targets for total antibiotic use and 66.7 per cent for 
antibiotic critically important for human health
For ‘An inclusive place to work’ and shop and ‘Skills and opportunities for all’ pillars, please see pages 18-21 in this report.
Our progress this year continued
Key achievements
Our most material 
issues 
Target
Progress
Key achievements 
Championing 
human rights
Respect human rights 
across our value chain 
and ensure our 
businesses’ transition 
to net zero is just and 
equitable for the 
communities we 
source from
Roadmaps in 
development
•	 Working in collaboration with longstanding partner, Fairtrade, we are contributing towards 
paying banana workers a living wage three years ahead of the industry commitment
•	 We worked alongside industry to create and implement a corrective action plan in our 
tea supply chain to remediate human rights impacts
•	 We scored 92 per cent completion and 86 per cent public disclosure on the WDI Disclosure
a)	 We have received third party limited assurance on our Scope 1 and 2 greenhouse gas emissions. For more information go to page 119 in this report.
b) 	 While we work with industry stakeholders on establishing best practice to measure emissions reductions, we are using as a proxy metric the proportion of suppliers (by emissions) that 
have science-based targets. Our Scope 3 targets depend on our suppliers’ reducing emissions and this metric captures the proportion of emissions that should be on the same emissions 
reduction trajectory as Sainsbury’s Group. Sainsbury’s requests suppliers who represent the top 80 per cent of emissions to set science-based targets by the end of 2025/26 as part of our 
WWF’s Retailer’s Commitment for Nature.
c) 	 Going forwards we will be using the relative metric ‘food waste sent to anaerobic digestion as a percentage of total tonnes handled’ as our primary food waste metric as this is considered 
best practice by The Waste and Resources Action Programme (WRAP).
d)	 We have restated the 2022/23 result for food waste to anaerobic digestion reported in the 2022/23 Annual Report from 23,443 tonnes to 30,399 tonnes due to a reporting error identified. The 
2019/20 baseline is restated from 31,615 tonnes to 34,609 tonnes. This means that in 2022/23 we reduced absolute food waste by 12.2 per cent rather than the 25.8 per cent reported versus 
our 2019/20 baseline. This year we have reduced food waste to anaerobic digestion by 12.5 per cent absolute and 13.9 per cent relative to total tonnes handled versus our 2019/20 baseline.
e) 	 Relative: removing volume impact.

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18  J Sainsbury plc Annual Report and Financial Statements 2024
Our People
Building an inclusive culture 
Our vision is to be the most trusted retailer, where people love to work and 
shop. That means harnessing talent, creativity and diversity of colleagues in 
an environment where everyone can thrive. We are committed to being a truly 
inclusive employer where all our colleagues are treated fairly and with respect 
and are encouraged to develop their skills and fulfil their potential.
Our valued behaviours 
Our valued behaviours are embedded across everything we do 
in order to deliver our purpose and strategy. They enable all 
colleagues to understand our ways of working and what we expect 
from colleagues, leaders and managers to make a difference for 
our customers and colleagues.
•	 Do what you say you’ll do 
•	 Don’t walk past a problem
•	 Improve things for your customer
•	 Spot opportunities to simplify
•	 Walk in the shoes of your colleagues and customers
•	 Show care and respect to everyone
Aligned with our valued behaviours, we have set performance 
expectations for our leaders and colleagues. These provide a 
framework which enables colleagues to understand what’s 
expected of them, as well as what they deliver in their roles. 
These expectations underpin how we manage performance 
and support career and development conversations.
Investing in colleagues
We are committed to doing all that we can to support our colleagues and 
have continued to make significant investments in pay. During the year, 
we have made our biggest ever single investment to reward hourly paid 
colleagues, accelerating our commitment to always invest in our 
people first. 
To further support our colleagues, we provide free food for store and depot 
colleagues during their shifts and, in July 2023, we introduced free sanitary 
products across all sites and stores for colleagues. We have also increased 
the frequency of additional discounts at Sainsbury’s for all colleagues. 
The colleague discount on Sainsbury’s purchases increases from 10 per cent 
to 15 per cent every Friday and Saturday. This provides additional certainty 
to our colleagues and makes their weekly shop more affordable. 
Own It
Be 
Human
Make It 
Better
During the year, we introduced Simple Savings and Help to Save, where 
colleagues can save directly from salary, helping them to save more easily. 
Our partnership with Salary Finance includes loans and Pay Advance, which 
gives colleagues the option to access their pay ahead of pay-day. There are 
also a number of financial and emotional wellbeing resources available 
to colleagues, particularly those relating to budgeting, savings and 
debt management.
We continue to make an annual contribution to GroceryAid, a charity that 
supports grocery workers across a range of areas, including financial support.
Training and development
We have a wide variety of development programmes and opportunities 
available for colleagues. This includes personal development toolkits and 
programmes, including apprenticeships.
Under Plan for Better, we committed that at least 75 per cent of colleagues 
on an apprenticeship will successfully complete their programme, ahead of 
nationally reported apprenticeship completion rates. We offer a variety of 
apprenticeships across the business and have already supported 1,950 of our 
colleagues and managers with apprenticeship roles since 2016. We utilise 
apprenticeship programmes to enhance colleagues’ knowledge, skills and 
behaviours across a structured programme aligned to their job role, so they 
can make an even greater impact in their role and have greater confidence 
with their increased knowledge.
Colleagues have access to a learning platform which hosts a variety of online 
courses, including mandatory training and personal development. We also 
offer colleagues the opportunity to attend Skills Boosts, targeted 
development workshops on a single behaviour or skill. 
During the year, we hosted Company-wide webinars. In these sessions, 
thought leaders and experts share concepts, tools, and tips related to our 
valued behaviours and cultural initiatives. Colleagues have the opportunity 
to submit questions to the speaker via a chat during the session.
Our range of leadership programmes includes Leading@Sainsbury’s, 
Accelerate YOU and our Leadership Acceleration Programme, which helps 
colleagues develop the key leadership behaviours needed to thrive within 
the Sainsbury’s group. Under Better for Everyone, we aim for 70 per cent of 
colleagues who are on our Leading@Sainsbury’s programme to be promoted 
within nine months of its completion.

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Health, safety and wellbeing
The health and safety of our colleagues and customers is a top priority 
and is essential to the smooth running of our business. As a result of the 
measures and processes we have put in place, there continues to be a 
reduction in injuries to both colleagues and customers. Reported colleague 
accidents have decreased by 27 per cent and customer accidents by 
49 per cent over the last seven years.
An independent safety team supports our retail and logistics operations and 
provides expertise, coaching and challenge to our line managers. We use 
our innovative risk mapping tool and data from a wide range of sources to 
identify those sites which require support. This ensures that we continue to 
reduce harm whilst ensuring we have the right level of compliance in place 
around key areas such as training, fire safety and adherence to procedures.
Our governance processes ensure colleagues can feedback on issues, 
regularly engage with unions and benefit from Board oversight. We have 
strong and well-established Primary Authority relationships in place that 
cover all our risk areas including health, food, fire and petroleum safety. 
These relationships are built on a foundation of trust and we openly share 
information with our Primary Authority.
Supporting the wellbeing of our colleagues really matters. It’s our aim that 
every colleague will have access to physical, mental and financial wellbeing 
support through benefits, tools and resources that enable them to make 
positive and proactive choices to thrive in all aspects of life. We offer a range 
of wellbeing programmes, initiatives and education, like our Employee 
Assistance Programme, to do just that.
At Sainsbury’s, we have empowered our colleagues to work differently. 
We introduced Smarter Working, which covers flexible working, hybrid 
working, meeting frameworks and our Core Days concept – all to maximise 
performance, productivity and flexibility. Smart Weeks are all about greater 
choice to work flexibly whilst meeting the needs of a seven-day-a-week 
business. We recognise that not every week is the same and Smart Weeks 
allows our colleagues flexibility in when they work by flexing the length of 
their days to accommodate workload peaks or personal commitments.
An inclusive place to work and shop
We get feedback from our colleagues through our annual engagement 
survey, regular ‘temperature check’ surveys and ongoing colleague 
listening. This helps us to understand what is important to our colleagues 
and to identify how we can continue to support them. After each colleague 
engagement survey, line managers discuss the results with their teams 
and work together to plan and implement actions that will help make 
Sainsbury’s a truly great place to work.
We continue to focus on representation and transparency across the 
business and again published our integrated Gender and Ethnicity Pay 
Report. In our most recent report, our mean gender pay gap has decreased 
from 8.5 per cent to 8.4 per cent, while our median gender pay gap has 
increased from 6.3 per cent to 6.7 per cent. While we have seen a further 
improvement in representation of women at senior levels in our organisation 
over the last year (up 5.4 per cent), the pay gap still exists as we have more 
men in higher-paid management and senior leadership roles. Our hourly 
paid retail colleagues are all paid the same base rate of pay, but certain roles 
attract a premium, including drivers and bakers, where men represent over 
90 per cent of the population. Our median pay gap increase is a result of 
recruitment of men into retail hourly paid colleague roles, with more men 
now receiving a skills premium compared to last year.
Our mean ethnicity pay gap is -2.9 per cent (-1.6 per cent in 2022) and 
median gap is -5.4 per cent (-4.0 per cent in 2022). Location pay is key in 
explaining our ethnicity pay gaps. Although all retail hourly paid colleagues 
receive the same base rate of pay, stores in London attract a location 
premium. Around 50 per cent of retail hourly paid Ethnically Diverse 
colleagues work in a London store, compared to only 5 per cent of 
White hourly paid colleagues.
Progress on our current Better for Everyone commitment to achieve diverse 
representation at senior leadership and senior management positions by 
2024 can be seen in the tables on page 21.
We are committed to being an inclusive employer with diverse representation 
at all levels of our business. We train senior managers who are responsible 
for recruitment to be inclusive in their decision-making and manage bias 
through the process. Our recruitment dashboard helps us to identify how 
successful we are in attracting diverse talent for our store support centre, 
retail and logistics roles and highlights any adverse impact in the 
recruitment process. Using this data, we work with our Talent partners 
across the business to agree interventions to support our inclusivity objectives.
Our range of leadership development programmes includes acceleration 
programmes to support a diverse talent pipeline. This year, we launched 
Accelerate YOU, which aims to accelerate the progression of high potential 
Ethnically Diverse colleagues by maximising talent and increasing cognitive 
diversity, creativity and competitiveness through targeted and personalised 
development. We also sponsored the Diversity in Retail Ethnic Future 
Leaders Programme. Their successful completion of the programme reflects 
our commitment to nurturing diverse talent within the business and industry.
I firmly believe we all need 
to take time to reflect on 
how we’re really doing, to 
ensure we’re as happy and 
healthy in all aspects of our 
lives as we can be. 
Clodagh Moriarty 
Operating Board Sponsor for Wellbeing

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An inclusive place to work and shop continued
Sainsbury’s Colleague Networks
Our networks are led by our colleagues are open to colleagues of that community and other allies.  
Over 13,000 colleagues are members of the networks.
Our EnAble network supports all colleagues with disabilities and long-term conditions to fulfil their potential by increasing 
awareness, boosting confidence and helping to simplify processes. It is sponsored by Tim Fallowfield, OBE, Company Secretary 
and Corporate Services Director, and Mark Given, Chief Marketing Officer. 
Most recently, the EnAble team hosted Sainsbury’s Disability Week 2024. This event explored the breadth of disability and 
neurodiversity that exists in our business, enabling colleagues to talk about the opportunities inclusivity presents and how 
to be effective allies through colleague panels and a keynote speaker.
Our I AM ME network aims to build ethnically diverse colleague confidence, support better progression, celebrate different 
cultures and build an inclusive culture. It is sponsored by Graham Biggart, Chief Transformation & General Merchandise 
Commercial Officer. In the year, the I AM ME team have hosted many business-wide events, including Race Equality Week, 
South Asian Heritage Month and Black History Month, providing our colleagues and allies with a voice to raise awareness 
and understanding whilst celebrating diverse cultures. 
Our Inspire network drives positive change within Sainsbury’s, creating an inclusive culture that inspires, connects, and supports 
colleagues to reach their potential, regardless of gender. It is sponsored by Rhian Bartlett, Chief Food Commercial Officer.
Throughout the year, the Inspire team have connected with colleagues to highlight key issues and provide guidance on how 
colleagues can overcome related challenges. The team marked many important events, including International Men’s Day, 
International Women’s Day and World Menopause Day.
Our Proud@Sainsbury’s network aims to create and nurture a workplace where everyone is free to be themselves, irrespective 
of gender identity, gender expression or sexual orientation. 
This year, the Proud@Sainsbury’s team and allies were a visible presence at more than 20 Pride events across the country. 
They marked many important moments, including Trans Awareness Week, International Day Against Homophobia, 
Transphobia and Biphobia, Non-Binary People’s Day, Bi Visibility Day and LGBT+ History Month.
Our We Care network aims to make caring visible by raising awareness and supporting our Carer colleagues to reach their full 
potential. It is sponsored by Tim Fallowfield OBE, Company Secretary and Corporate Services Director. During the year, the 
We Care network focused on providing resources, guidance and advice for our Carers and Line Managers. They also celebrated 
Carers Week, Young Carers Rights Day and Carers Rights Day and hosted informal support sessions throughout the year. 
We have a lot more to do, but with 71% of colleagues happy 
at work and 79% of colleagues able to be themselves at work, 
we are proud to be making progress in enhancing inclusivity 
across the business.
Prerana Issar
Chief People Officer
We are proud that our diversity, equity and inclusion initiatives have been 
recognised at a national level.
For the second consecutive year, we’ve been included as a ‘The Times’ Top 50 
Employer for Gender Equality, one of only two retailers recognised in the list 
and setting the benchmark for gender inclusivity in our industry. We are one 
of only 68 companies in the FTSE 350 to have met, or exceeded, the FTSE 
Women Leaders’ 40 per cent Women in Leadership Target. 
We were awarded the Leading Edge Employee Journey award from Diversity 
in Retail for the effort we have made in ensuring that inclusion is at the 
heart of each stage of the colleague lifecycle. 
We continue to be accredited as a Disability Confident Leader, which is the 
highest tier of accreditation in the government’s Disability Confident scheme.
We launched Thrive with Sainsbury’s in 2022, the UK’s first retail incubator 
programme for Black founded and owned brands. As a result, we were 
delighted to launch four new brands in our stores this year. 
Three Sainsbury’s colleagues were recognised in Diversity in Retail’s Women 
to Watch and Role Models for Inclusion in Retail Index. A Sainsbury’s 
colleague was also listed in The Grocer’s Top 10 activists to make grocery a 
better industry for the LGBTQ+ community and nominated for the 2024 
British Diversity Awards. Our I AM ME network has been recognised as a 
Top 10 colleague network by the Investing in Ethnicity Awards for the third 
consecutive year and our Proud@Sainsbury’s network was nominated for 
the LGBTQIA DIVA Award in the category Network of the Year. 
We are making progress in driving positive, sustainable change to improve 
the lived experience and opportunities for underrepresented groups. There 
is more that we can do and we continue to work with a number of partners, 
including Business Disability Forum, Carers UK, Stonewall, Business in the 
Community, Diversity and Inclusion in Grocery and Diversity In Retail.
  Further information can be found in the Better for Everyone section of our 
corporate website and in our Gender and Ethnicity Pay Report at  
www.about.sainsburys.co.uk
Our People continued

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Diversity and Inclusion targets
Senior leadership positions (the top 230 leaders)
Diversity and Inclusion targets
Senior management positions (the top 1,200 leaders beneath the top 230 senior leadership positions)
Total colleagues
  Women
50%
  Ethnically Diverse
12%
  Black
3%
  Women
43%
  Ethnically Diverse
12%
  Black
3%
  Women (76,247)
51%
  Men (72,251)
49%
2024 Target
2024 Target
  Women
46.6%
  Ethnically Diverse
10.1%
  Black
3.2%
2023/24
  Women
40.7%
  Ethnically Diverse
10.6%
  Black
1.2%
2023/24
  Women
44.2%
  Ethnically Diverse
9.3%
  Black
2.8%
2022/23
  Women
39.7%
  Ethnically Diverse
9.1%
  Black
1%
2022/23
We are committed to continue to work 
on diversity, equity and inclusion, and 
I am passionate about making sure 
that every one of our colleagues has 
a voice and is heard. 
Simon Roberts
Chief Executive

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Our Section 172 statement
Stakeholder considerations 
play an important part in 
the Board’s discussions 
and decision-making in 
promoting the long-term 
success of the Company. 
During the year ended 2 March 2024, the Board has acted in accordance with 
Section 172(1) of the Companies Act 2006. Each Director has acted in the way 
they consider, in good faith, would be most likely to promote the success of 
the Company for the benefit of its members as a whole.
In doing so, the Directors have regard to the interests of other stakeholders, 
whilst maintaining high standards of business conduct. Examples of how 
Directors have applied these matters in Board discussions and their 
decision-making are included throughout this Annual Report.
The Board considers the potential consequences of its decisions on 
stakeholders, recognising that decisions made will not necessarily result 
in a positive outcome for every stakeholder group. Processes are in place 
to ensure effective decision-making, which balances the needs of our 
stakeholders with the business’s strategic priorities, purpose, culture 
and values.
An overview of our key stakeholder considerations that influenced 
discussions and the outcomes of these discussions is outlined below. 
Further examples of how the stakeholder voice has been brought into 
the boardroom can be found in our Governance section on pages 66 to 80.
As we embed our Next Level 
Sainsbury’s strategy, strong 
stakeholder engagement will 
continue to be a key priority.
Simon Roberts
Chief Executive
Section 172 duties
Relevant disclosure and page number
The likely 
consequences of 
Board decision-
making in the 
long term
Chair’s letter on page 2
Chief Executive’s letter on page 4
Business model on page 8
Our strategy on page 10
Delivering on our outcomes on page 12
Plan for Better Report on page 15
Our people on page 18
Engaging with our stakeholders on page 23
Key performance indicators on page 44
Financial Review on page 46
Principal Risks and Uncertainties on page 54
Statement of Viability on page 62
Chair’s governance letter on page 66
Board leadership and Company purpose on page 73
Annual Report on Remuneration on page 104
The interests of 
our colleagues
Chair’s letter on page 2
Chief Executive’s letter on page 4
Business model on page 8
Delivering on our outcomes on page 12
Plan for Better Report on page 15
Our people on page 18
Engaging with our stakeholders on page 23
Key performance indicators on page 44
Chair’s governance letter on page 66
Board leadership and Company purpose on page 73
Annual Report on Remuneration on page 104
The need to foster 
our business 
relationships 
with suppliers, 
customers 
and others
Chief Executive’s letter on page 4
Business model on page 8
Our strategy on page 10
Delivering on our outcomes on page 12
Engaging with our stakeholders on page 23
Key performance indicators on page 44
Chair’s governance letter on page 66
Board leadership and Company purpose on page 73
Corporate Responsibility and Sustainability 
Committee Report on page 89
Section 172 duties
Relevant disclosure and page number
The impact of our 
operations on the 
community and 
the environment
Chief Executive’s letter on page 4
Our strategy on page 10
Delivering on our outcomes on page 12
Plan for Better Report on page 15
Task Force on Climate-related Financial 
Disclosures (TCFD) on page 30
Principal Risks and Uncertainties on page 54
Board leadership and Company purpose on page 73
Corporate Responsibility and Sustainability 
Committee Report on page 89
The desirability 
of maintaining 
a reputation for 
high standards of 
business conduct
Our strategy on page 10
Engaging with our stakeholders on page 23
Key performance indicators on page 44
Principal Risks and Uncertainties on page 54
Non-financial information statement on page 64
Chair’s governance letter on page 66
Board leadership and Company purpose on page 73
Composition, succession and evaluation on page 81
Division of responsibilities on page 84
Nomination and Governance Committee report on 
page 85
Annual Report on Remuneration on page 104
The need to act 
fairly between 
shareholders
Engaging with our stakeholders on page 23
Chair’s governance letter on page 66
Board leadership and Company purpose on page 73
Audit Committee Report on page 92

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Engaging with our stakeholders
Regular stakeholder engagement develops our understanding of key issues 
and underpins decision-making by the Board and Operating Board. Throughout 
the year, we endeavoured to build opportunities for two-way, open and 
positive engagement with all of our stakeholder communities.
Why they matter
Over two-thirds of the total retail shoppers in the UK have shopped 
with Sainsbury’s over the last year and there were over 22.3 million 
active Nectar users. Within Argos, we have 19 million active 
customers, and the website is the fourth most visited online 
retailer in the UK. In Financial Services, we have 1.8 million active 
Sainsbury’s Bank customers and 2.0 million Argos Financial 
Services customers.
Understanding the needs of our customers allows us to provide 
relevant products and services. Satisfied customers are key to 
our long-term success.
What matters to them
•	 Competitiveness and value
•	 Availability and range of products
•	 Convenience and location
•	 Great service levels
•	 Speed of Groceries Online delivery
•	 Quality of products
•	 Sustainability
How we engage
•	 3.2 million responses this year across all of our Sainsbury’s and Argos 
customer feedback programmes
•	 Nectar data, which helps us understand how customers are shopping
•	 Qualitative customer focus groups and quantitative surveys
•	 Social media listening
•	 Brand tracking, which assesses the performance and perception of our 
different brands
•	 I Care, a satisfaction survey which helps us understand the overall 
shopping experience for our customers
Engagement outcomes
Over 1,100
new products launched 
•	 The Board and Operating Board reviewed customer feedback and overall 
metrics on consumer sentiment and trends to inform our responses to the 
key issues impacting customers, such as price inflationary pressures and 
availability of products 
•	 The Chief Marketing Officer provided regular updates to ensure that the 
Board received feedback from our customer listening sessions
•	 The Board continues to focus on delivering for customers in line with our 
priorities in this final year of the current strategy and as we move into our 
Next Level Sainsbury’s strategy: 
	– First choice for food: customers choosing Sainsbury’s as the place they 
come to for good food, providing more food choice and consistent 
value, whilst offering a complementary range of relevant products
	– Loyalty everyone loves: we are building a world-leading loyalty 
platform that is more personalised, joyful, rewarding and transparent
	– More Argos, more often: providing a brilliant and convenient range of 
products at great value
	– Save and invest to win: ongoing internal transformation enabling us to 
reinvest in our customer offer
•	 Our strategy is underpinned by our Plan for Better: supporting our 
customers to eat healthily and sustainably, whilst delivering on our 
commitment to become net zero in our operations by 2035
•	 The Board used its understanding of our customers when evaluating and 
supporting the Next Level Sainsbury’s strategy, enabling the business to 
invest further in what really matters to customers
•	 We launched 1,100 new products as we continued to deliver food 
innovation to customers to put food back at the heart of Sainsbury’s
•	 The Board supported the launch of Smart Charge in response to our 
customers’ need for convenient EV charging and ongoing interest 
in sustainability
More information 
More information on our customer engagement activities can be found 
on page 12.
Customers

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Let’s Talk
As in previous years, direct dialogue between colleagues and the 
Board and Operating Board has been essential in creating a culture 
of open, honest feedback. This feedback has always informed 
decision-making within the business.
This year, we have introduced ‘Let’s Talk’ sessions to create more 
opportunities for colleagues to talk directly with the Operating 
Board. These colleague listening sessions provide the space for 
more colleagues to address the issues that concern them, while 
getting a better understanding of why our new purpose and 
strategy are so important for the future success of the business. 
Colleagues are also invited to continue the conversation between 
‘Let’s Talk’ sessions via our internal social network.
Feedback from these sessions will be shared with relevant 
colleagues and decision-makers in the business, so that 
appropriate and swift action can be taken.
Engaging with our stakeholders continued
Why they matter
Our colleagues include everyone who is employed by the 
business. Colleagues are at the heart of everything we do 
and their commitment to our purpose and values is critical 
to the business’s long-term success.
What matters to them
•	 Reward and benefits
•	 Career progression
•	 Colleague engagement
•	 Communication
•	 Training and development
•	 Wellbeing
•	 Health and safety
•	 Diversity, equity and inclusion
How we engage
•	 Regular Non-Executive Director, Chief Executive and Operating Board 
meetings with our workforce advisory panel, the National Make It Better 
Together group, to directly understand the views of colleagues from 
across the business via their elected peers
•	 Operating Board Director Listening Sessions to provide an opportunity 
to hear directly from colleagues across the business
•	 Continual two-way communication through internal channels, including 
monthly live presentations, question and answer sessions and internal 
social media discussions with the Operating Board
•	 Honest, confidential colleague feedback on what it is like to work for the 
business through our annual colleague engagement survey, ‘We’re Listening’, 
and regular pulse surveys
•	 Colleague feedback through topic-specific ‘temperature check’ 
surveys throughout the year, helping us to understand colleagues’ 
views and sentiments
•	 Regular updates provided to the Board and its Committees on culture, 
engagement, diversity, equity and inclusion, colleague pay and benefits 
and talent and succession
Engagement outcomes
£200 million
Investment into colleague pay
•	 Colleague feedback from all channels was shared and discussed at 
Board meetings. This provided the Board with insight and challenge, 
feeding into the review of the Next Level Sainsbury’s strategy and 
wider decision-making
•	 Decision-makers across the business received timely feedback, allowing 
colleague interests to remain a priority when considering key concerns, 
including the cost of living crisis and inflationary pressures, safety 
and communication
•	 Updates on decisions made as a result of colleague feedback were 
shared with colleagues through regular communications from the 
Chief Executive and Operating Board members
•	 We made our biggest ever single investment into colleague pay – 
£200 million. From March 2024, Sainsbury’s and Argos store colleagues 
receive a base rate of at least £12.00 per hour (£13.15 per hour for those 
in London). We continue to pay in line with the Real Living Wage and 
significantly ahead of the government’s National Living Wage
•	 Further supporting colleagues with cost of living, we continue to provide 
free food for colleagues in stores, depots, Local Fulfilment Centres and 
contact centres, and in response to colleague feedback, have moved 
colleague discount uplifts in Sainsbury’s to 15 per cent every Friday 
and Saturday
•	 We continue to deliver development and career growth opportunities 
for colleagues through apprenticeships, early-career engineering and 
technology programmes and acceleration programmes, resulting in 
increased engagement scores for colleague development
More information 
More information on our colleague engagement activities can be found on 
pages 18 to 21.
Colleagues

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Why they matter
We have over 96,000 shareholders, including large institutional 
investors and smaller individual shareholders.
Access to capital is vital to the long-term performance of 
our business. We provide fair, balanced and understandable 
information to shareholders and equity analysts and work to 
ensure they have a strong understanding of our purpose, strategy, 
performance and culture. Regularly engaging with shareholders 
helps us to inform strategic decision-making and to understand 
their views.
What matters to them
•	 How consumer spending habits are changing as cost of living pressures 
recede but higher interest rates persist, particularly in general 
merchandise spend
•	 How industry grocery volumes are trending now that inflation is falling
•	 Outlook for grocery inflation and possible price deflation, and what this 
means for industry dynamics
•	 Whether there are signs of a change in competitive behaviour
•	 Argos’s trading momentum and the outlook for sales and profit, as well as 
clothing performance
•	 Sustainability of Sainsbury’s grocery volume share momentum and 
sources of market share gains beyond value improvement 
•	 Providing detail on the Next Level Sainsbury’s strategy and drivers of 
profit growth
•	 Providing confidence in cash flow guidance, including capital expenditure 
discipline and the impact of working capital
•	 Providing clarity on ongoing shareholder returns and potential future 
share buybacks
•	 Understanding the moving parts of cost inflation, such as lower energy 
costs, but ongoing wage inflation
•	 The impact of exiting core Sainsbury’s Bank services, including the 
impact on profit guidance and future cash returns
•	 Progress against our Plan for Better sustainability targets
How we engage
•	 One-on-one investor meetings with the Chair, Chief Executive, Chief 
Financial Officer and Director of Investor Relations and Financial Planning
•	 Real-time feedback from investors after meetings and presentation
•	 The Annual General Meeting
•	 Capital Markets Day
•	 Attendance at results presentations, key investor conferences and tours 
of our stores 
•	 Regular email and telephone contact with investors and analysts
•	 A shareholder event for retail investors
•	 Dialogue with shareholder groups
•	 Regular engagement with investors on Environmental, Social and 
Corporate Governance (ESG), including holding a deep dive investor group 
meeting and issuing Investor ESG newsletters
•	 Analyst attendance at the Board Strategy meetings, providing insight and 
perspective on the retail sector
Engagement outcomes
Next Level 
Sainsbury’s
Launched updated strategy in February 2024
•	 The Board regularly received reports and updates on shareholder 
relations, summarising key feedback from our principal shareholders, to 
ensure that shareholders’ views informed decision-making throughout 
the year
•	 The Board used its understanding of investor viewpoints when evaluating 
and supporting strategy, ensuring the strategic outcomes and financial 
outcomes will deliver for shareholders over the course of the plan
•	 In February 2024, we hosted an in-person event for investors and analysts 
to launch our Next Level Sainsbury’s strategy, providing direct access to 
the Operating Board
•	 In October 2023, we engaged with our investors in an open Q&A around 
the successes we are seeing and challenges we are facing to drive bigger 
and faster results
•	 We commission a detailed Investor Study as part of our Next Level 
Sainsbury’s strategy formation. This activity involved interviewing 16 
leading investors, representing 34 per cent of the issued share capital, 
and reporting key findings back to the Board
Shareholders

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Suppliers as partners
Our suppliers have always been integral to the success of the 
business, helping us to provide good food and innovative products 
to meet our customers’ needs. We pride ourselves on building 
long-term relationships with our GFR and GNFR suppliers.
In planning for the launch of the Next Level Sainsbury’s strategy, 
we re-focused these supplier relationships in order to reframe our 
suppliers as partners. This approach has encouraged two-way 
conversation with suppliers to ensure ongoing high quality 
products and services for our business and customers. It is a key 
way in which we manage and improve the increasingly complex 
ethical, environmental and social challenges that we face to build a 
more sustainable food system in the UK.
Our partnership with Moy Park demonstrates this approach in 
action. In March 2023, we made improvements to our chicken 
welfare standards, becoming the first retailer of our scale to make 
this change to provide safe and healthier environments for 
chickens, while maintaining the great value that our customers 
expect. Working collaboratively with Moy Park, scientific experts 
and our trusted farmers on research and development projects also 
enabled us to use technology to improve the monitoring of welfare.
Engaging with our stakeholders continued
Why they matter
We have over 6,000 Goods For Resale (GFR) suppliers that supply 
products for food, general merchandise and clothing, and over  
1,700 Goods Not For Resale (GNFR) suppliers across the Group that 
support all functions, including logistics, marketing, technology 
and retail. Our suppliers range from large multi-national 
companies to small independently-run businesses.
Our GFR suppliers are fundamental to the quality and variety of 
products we sell and enable us to meet the high standards that we 
set ourselves.
Our GNFR suppliers provide operational excellence and access to 
new technology and innovation that ensures we keep pace with the 
evolving and changing needs of our business.
What matters to them
•	 Long-term relationships
•	 Cost-efficiency
•	 Responsible procurement, trust and ethics
•	 Technological advances
•	 Payment practices
How we engage
•	 Supplier events to bring suppliers and senior decision-makers together 
and share progress
•	 Consistent communication and updates with our supply base through 
online supplier portals
•	 Taking part in annual, independent surveys which benchmarked us 
against other retailers and highlighted areas for improvement; these 
included the Supplier Advantage survey and the Groceries Supply Code of 
Practice supplier survey
•	 Clearly communicated expectations in relation to our Plan for Better 
commitments through sustainability working groups for collaboration 
and engagement
•	 Publishing our Modern Slavery Statement to ensure suppliers understand 
the importance of preventing Modern Slavery and human trafficking to 
our business
•	 Setting up new sustainability working groups
Engagement outcomes
•	 Cognisant of the impact of its decisions on suppliers, the Board received 
regular updates on supplier relationships and encouraged collaborative 
working with our supplier partners
•	 In May 2023, we held our major food supplier event with over 2,000 
attendees, updating suppliers on our progress, strategy and priorities. 
Two-way engagement at this event enabled us to outline expectations 
and suppliers to explore the themes that mattered most to them. We also 
held a smaller event for our own brand food suppliers in September 2023 
to update them on key matters that were specific to suppliers of 
Sainsbury’s branded products
•	 In February 2024, we hosted a briefing for suppliers to launch our 
Next Level Sainsbury’s strategy
•	 Our management teams actively engaged with our supply chains to 
manage key short and longer-term risks, focusing on building more 
resilient supply chains for the future
•	 The Corporate Responsibility and Sustainability Committee received 
updates during the year on the outcomes of the annual, independent 
surveys, which helped shape supplier-related initiatives and prioritise 
focus areas to deliver tangible improvements for our suppliers 
•	 Our ongoing collaborative approach to our Plan for Better commitments 
has resulted in a greater understanding of progress towards net zero with 
23 of our suppliers (6 per cent of emissions) having approved SBTi 1.5oC 
net targets and 683 suppliers (57.2 per cent of emissions) are disclosing 
their emissions through Higg and Manufacture 2030
•	 In recognition of our engagement efforts, we were awarded an A rating 
for supplier engagement by the CDP
•	 The Corporate Responsibility and Sustainability Committee regularly 
discussed the approach and actions we are taking to mobilise action in 
our supply chains on all areas of sustainability
More information 
More detail on how we work with our suppliers on sustainability can be 
found on page 15 and in our standalone Plan for Better Report.
Suppliers

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Why they matter
We believe that everyone deserves access to good food. However, 
our communities continue to be impacted by the rising cost of 
living, with 15 per cent of UK households living in food insecurity  
in the UK. As a responsible retailer, we want to support the 
communities that we serve in the UK and internationally.
Nurturing resilient communities is at the heart of our brand 
heritage and we have a long history of making a positive difference 
to the communities we serve, both locally and internationally.
What matters to them
•	 Tackling food poverty for communities at risk now and in the future
•	 Improving access to food to prevent the risks of falling into food poverty
•	 Impacting our communities at a local and national level
•	 Supporting communities internationally exposed to humanitarian disasters
How we engage
•	 Ongoing partnerships with our food redistribution partners, including 
Neighbourly, FareShare and The Felix Project, to address the immediate 
need for access to food within our communities
•	 Longstanding partnership with Comic Relief on our Nourish the Nation 
community programme, providing us with first-hand insights into the 
needs of our communities and funded partners to inform funding 
decisions
•	 Consulting key NGOs to understand the context around food insecurity 
in the UK and their recommended changes
•	 Rallying customers and colleagues behind our efforts through fundraising 
and awareness campaigns
•	 Community champions in our stores and store support centres, who 
amplify our impact to ensure it is relevant to the communities we 
are serving
Engagement outcomes
13.5 million 
meals donated
•	 Our community and charity partnerships have raised £36 million for 
good causes
•	 Moving into its third year, our Nourish the Nation programme has raised 
£11.4 million to support Comic Relief. This will fund initiatives designed to 
tackle food insecurity and ensure communities have access to balanced, 
nutritional and sustainable food sources
•	 Together with some of our key suppliers, we have committed to donating 
over one million meals in support of the Coronation Food Project
•	 We distributed 13.5 million meals to those who needed them most 
through our partnership with Neighbourly
•	 Our community grants for local good causes supported 798 good causes 
aimed at helping to tackle food poverty
•	 We redistributed 57.8 per cent more surplus food to communities through 
our partnership with Neighbourly and other redistribution partners
•	 Our ongoing partnership with FareShare online has generated over 
£700,000 in customer donations
More information 
More information on our communities can be found on in our Plan for Better 
Report on www.about.sainsburys.co.uk
Communities

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Engaging with our stakeholders continued
Why they matter
The UK Government and devolved administrations in Scotland, 
Wales and Northern Ireland set the regulatory environment in 
which our business operates.
As a UK-based business and a major employer of over 148,000 
colleagues, it is appropriate and responsible for a business of 
our scale to engage in a transparent way with government 
and regulators.
What matters to them
•	 Openness and transparency
•	 Compliance with regulation, including Groceries Supply Code of Practice
•	 Action on sustainability matters
•	 Diversity, equity and inclusion
•	 Industry insight to support legislation
How we engage
•	 Engagement with government and policymakers through regular 
correspondence and attendance at parliamentary and political events
•	 Public responses to government consultations and through NGO/
industry groups
•	 Direct meetings, including store-based engagement with elected representatives
•	 Government-organised roundtables
•	 Participation in government-organised forums, such as the Retail Sector 
Council, Defra Retailer Forum, Department for Business and Trade Retail 
Forum and Food Data Transparency Project
•	 Liaison with key bodies and departments, including the Groceries Code 
Adjudicator, HMRC, Trading Standards, Food Standards Agency, 
Environment Agency and Department for Health and Social Care
•	 Trade association meetings, including those convened by the British 
Retail Consortium and the Institute of Grocery Distribution
Engagement outcomes
•	 The Board and the Corporate Responsibility and Sustainability Committee 
received updates in relation to our work with government and regulators 
to monitor developments and ensure Board engagement
•	 The Board and senior leadership have been in regular dialogue with 
ministers and officials, in respect of wide range of issues of relevance to 
our business sector
•	 We proactively engaged with these stakeholders on public policy issues 
affecting our customers and colleagues. Key areas of discussion this year 
include the reform of business rates and the removal of downward 
transitional relief; implementation of the Northern Ireland Protocol and 
Windsor Framework; implementation of new High Fat, Sugar and Salt 
restrictions in our stores; development of new schemes to improve 
recycling, such as the Deposit Return Scheme and Extended Producer 
Responsibility; and challenges facing the food supply chain, such as 
high energy and commodity costs and labour shortages
•	 We hosted a Health Policy discussion at Westminster Parliament, sharing 
Nectar insights on the gap between customer health attitudes and 
purchases, helping consumers adopt healthier diets
More information 
More information on our activities with Government, parliamentarians and 
regulators can be found in our standalone Plan for Better report.
Government, parliamentarians and regulators

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Why they matter
Non-governmental organisations (NGOs) are the force maintaining 
focus, facilitating collaboration and driving pace and change on 
pivotal issues across the spectrum within our industry. Through 
engagement with NGOs, our business is able to reflect on the 
progress made and identify the steps to go further in unlocking 
sector-wide challenges, which is particularly important at the 
launch of the Next Level Sainsbury’s strategy and through related 
business transformation.
What matters to them
•	 Openness and transparency
•	 Collaboration with NGOs and other members of the industry
•	 Business responsibility
•	 Insight from business leaders
•	 Dedication of time and resources to address key challenges and issues
How we engage
•	 Ongoing development of long-term partnerships with NGOs
•	 Regular industry meetings and collaboration, supported by NGOs
•	 Key figures within our partner NGOs provided upskilling sessions within 
the business 
Engagement outcomes
•	 The Chief Executive continued to meet with signatories to the WWF’s 
Retailers’ Commitment for Nature. We submit our data annually to 
support the monitoring of progress across UK retailers halving the 
environmental impact of UK baskets by 2030 through the WWF 
Basket Report
•	 We worked closely alongside many NGOs, including WRAP, to unlock 
sector-wide challenges on data definition and measurement in a variety 
of areas
•	 Under the Food Data Transparency Project, we have actively participated 
in the Data and Health working groups, supporting aligned definitions 
and disclosures for the food sector on healthier sales
•	 Through our work with the Obesity Health Alliance, we shared private 
sector perspectives with food system actors on this key topic
•	 Alongside IGD, FIO-FOOD and DIO-FOOD, we worked with academics 
to independently assess retailing interventions to establish successful 
methods for supporting customers shopping in line with the 
Eatwell Guide
•	 Our work with Mondra, IGD and FIO-FOOD explored data solutions 
to systemically build sustainability metrics into recipe information, 
allowing us to identify material areas for action and help support 
more sustainable sales in future 
Non-governmental organisations 

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Climate change and Task Force on Climate-related 
Financial Disclosures (TCFD) 
Introduction
With the impacts of climate change being felt around the world, we are 
acutely aware of the leadership role we must play in addressing the current, 
evolving and future climate risks faced. 
We have approved Science Based Targets initiative (SBTi) 1.5oC aligned targets 
to reduce greenhouse gas (GHG) emissions to net zero within our own 
operations by 2035 and in our Scope 3 emissions by 2050. We have proven 
success in reducing our own emissions and we are also collaborating closely 
with our suppliers to ensure we’re driving positive change across our supply 
chain (see pages 41 to 43 for an overview of our Climate Transition Plan).
No one business or organisation can tackle the challenge of climate change 
in isolation and collaboration across industry, NGOs, government and 
beyond is required if we are to deliver the action required to meet our 
collective targets. Collaboration with our supply base is a critical unlocker. 
However we must also look at sector-level action through initiatives like the 
World Wide Fund for Nature’s (WWF) Retailers’ Commitment for Nature to 
drive greater action as a collective force.
Taking action on climate change is not a new step for us. In fact we have 
taken many strides forward over the last decade in our efforts to decarbonise 
our business. However, we are very aware that climate change risk is 
evolving and we must look ahead and scenario plan to inform decisions 
over the short, medium and long term. Our Task Force on Climate-related 
Financial Disclosures (TCFD) explain how we have identified, responded to 
and monitored the impacts of climate-related risks and opportunities on our 
business, including how we incorporate our findings into our wider strategy 
to bolster our climate resilience. This is our fourth year of reporting against 
the recommendations set by the Task Force. We have complied with the 
Financial Conduct Authority listing rule LR 9.8.6R by including climate-
related financial disclosures consistent with all of the TCFD 
recommendations, which we discuss below.
Governance
Governance a) Board’s oversight of climate-related risks 
and opportunities
The Board
The Board is accountable for risk management, strategy and target 
setting, including climate-related matters. The Board monitors how we are 
responding to climate-related risks and opportunities, identified through 
the risk management process and scenario analysis. The Board also 
oversees our Plan for Better strategy, which includes climate-related 
matters and is responsible for setting targets and monitoring progress 
against our climate-related metrics.
The Board recognises the importance of ensuring that there is appropriate 
climate-related expertise within the business and has undertaken training 
by the Cambridge Institute for Sustainability Leadership. The Board 
continues to upskill in this area and understands that responding to the 
impacts of climate change involves everyone in the organisation. To date we 
have provided relevant training for the wider commercial teams across the 
food and general merchandise divisions. See page 68 to 70 for biographies of 
our Board members, including their skills and experience.
Board Committees
The Corporate Responsibility and Sustainability Committee reviews the 
sustainability strategy and monitors the business engagement with our 
key stakeholders, including climate-related matters.
The Remuneration Committee reviews remuneration for Executive Directors 
against our Plan for Better targets and metrics, including long-term targets 
for Scope 1, 2 and 3 GHG emission (see page 99 for more details). 
The Audit Committee reviews risks and confidence in the climate-related 
metrics that we disclose. Further information on the Corporate Responsibility 
and Sustainability, Remuneration and Audit Committees can be found on 
pages 74 to 80.
Governance b) Management’s role in assessing and 
managing climate-related risks and opportunities
Operating Board
The Operating Board defines and monitors the business-wide strategy, 
including climate-related matters, adapting to new regulatory requirements 
and trends and approving major investments including capital allocation. 
The Operating Board is chaired by the Chief Executive, who also sits on the 
Board and Corporate Responsibility and Sustainability Committee. Further 
information on the key climate-related discussions is on page 79.
Plan for Better Steering Committee
The Plan for Better Steering Committee supports the Operating Board 
and leads the operational execution of our Plan for Better strategy, by 
overseeing business activity and monitoring performance against our 
climate-related metrics. The Plan for Better Steering Committee is chaired 
by the Chief Marketing Officer and has cross-divisional representation at 
Director level. Climate risks are reviewed annually at the Plan for Better 
Steering Committee with Board level oversight from the Corporate 
Responsibility and Sustainability Committee. Climate risks and mitigations 
are monitored throughout the year by the Plan for Better business leads and 
Steering Committee. The Government Affairs team provides regular updates 
to the Plan for Better Steering Committee, Operating Board and Corporate 
Responsibility and Sustainability Committee on relevant legislation and 
regulation impacting Plan for Better, including those relating to climate.
Further information on the Corporate Responsibility and Sustainability 
Committee can be found in its report on pages 89 to 91, providing 
information on the governance structure, its responsibilities, meeting 
frequency and principal activities in the year.
Strategy
Strategy a) Climate-related risks and opportunities 
identified over the short, medium and long term
Climate change impacts our business over the short, medium and 
long-term. Climate-related risks are categorised into physical and transition 
risks. Physical risks could impact our operations and supply chain through 
extreme weather events, such as flooding or droughts. Transition risks, as a 
result of moving to a low-carbon future, could impact us through changing 
consumers preferences or climate-related regulation, such as carbon taxes. 
Climate change also presents opportunities to build business resilience and 
efficiency, create new climate-friendly products for our customers and 
develop and invest in new technology.
To classify climate-related impacts on our business we use our existing 
corporate processes (for risk management and financial planning cycles) to 
set the boundaries for financial impact ranges and time horizons (described 
further in the risk management section on page 53).
Financial Impact Ranges
Impact
Financial range (revenue)
High
Greater than £125 million
Medium
£25 million to £125 million
Low
Less than £25 million
Time Horizons
Time period
Years
Reason
Short
0 to 5 years
Aligned to our financial planning cycle
Medium
5 to 15 years
Nearer term focusing on transition risks and 
opportunities
Long
15 to 50 years
Longer term focusing on physical risks 
and opportunities

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The table below captures the key climate-related risks and opportunities impacting our business, identified through our risk management process and 
qualitative scenario analysis. The financial impacts assume that actions are taken by the business to mitigate the climate-related risks and maximise the 
climate-related opportunities (see pages 34 to 35 for key actions).
Risks
Risk Description*
Time Horizon
Risk Type
Classification
Financial Impact (assuming  
actions are taken to mitigate risks)
Introduction of a carbon price leading to an increase in 
the cost of higher GHG emission products
Short / 
Medium
Transition
Policy and Legal
Low revenue loss
Ban on the sale of new petrol/diesel cars and vans from 
2035 leading to a reduction in fuel sales
Medium
Transition
Policy and Legal
High revenue loss
Increased likelihood of heat events, flooding and 
droughts leading to a reduction in crop yields and 
increased sourcing costs
Short / 
Medium / Long
Physical
Acute
Medium / high revenue loss
Increased likelihood of flooding leading to water 
damage and closure of stores and depots
Short / 
Medium / Long
Physical
Acute
Low revenue loss / cost
Opportunities
Opportunity Description a)
Time Horizon
Risk Type
Classification
Financial Impact (assuming  
actions are taken to mitigate risks)
Climate-conscious consumers favouring lower GHG 
emission products
Short / 
Medium
Transition
Reputation
Revenue opportunity 
Investment in climate change solutions
Short / 
Medium
Transition
Technology
Equity growth opportunity
Increasing demand for electric vehicle charging
Medium
Transition
Policy and Legal
Revenue opportunity
a)	 There are interdependencies between the climate risks and opportunities identified, such as the introduction of a carbon price providing further incentive for climate-conscious customers 
to favour lower GHG emission products.
Strategy b) Impact of climate-related risks and opportunities on business, strategy and financial planning
Our climate-related strategy is designed to respond to and manage the impacts of climate-related risks and opportunities that we have identified as well 
as support us in our journey to net zero by transitioning to a low carbon economy. 
The table below shows the key actions we are taking to address the impacts of climate-related risks and opportunities. 
Key climate-related risk/opportunity
How our strategy addresses the risks and opportunities identified
Climate-conscious consumers 
favouring lower GHG emission 
products
  Healthy and 
sustainable diets
  Reduction in 
carbon emissions
Our aim is to make it easy for our customers to afford and access food that forms part of a healthy and sustainable diet. 
We know that consumer preferences are changing, with more customers wanting to make sustainable choices when it 
comes to food. We have an innovation pipeline of products geared towards supporting a healthy and sustainable 
portfolio with a focus on the development and promotion of lower GHG animal protein and nutritionally positive meat 
alternatives, to capture switching calories from existing and new customers. This year, after significant development, 
we launched a new Taste the Difference Aberdeen Angus beef range which offers a 25 per cent lower carbon footprint 
compared to UK average consumed beef.
We have collaborated with Mondra, a third-party provider, on a pilot that explores the composition of our products and 
helps identify opportunities where we can produce lower emission products. We also focus on ensuring that lower GHG 
products remain nutritionally positive. More information on Mondra and Scope 3 can be found on page 39.
We are increasing our use of recycled and alternative fibres, exploring projects focusing on durability in clothing 
blueprints to increase longevity of garments and looking into suitable options for circularity programmes, improving 
efficiency as well as appealing to climate-conscious consumers.
To better understand the financial impacts of these transition risks we have performed quantitative scenario analysis 
on our Meat, Fish and Poultry and Clothing categories (see page 34 for more details).
Introduction of a carbon price 
leading to an increase in the 
cost of higher GHG emission 
products
  Reduction in 
carbon emissions

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32  J Sainsbury plc Annual Report and Financial Statements 2024
Key climate-related risk/opportunity
How our strategy addresses the risks and opportunities identified
Investment in climate 
change solutions
  Reduction in 
carbon emissions
  Reduction in food waste
We continue to invest significantly in engineering innovation, energy efficiency and carbon reduction initiatives in order 
to achieve our net zero targets. This investment is embedded into our corporate financial plans and has been approved 
by the Board. 
Our capital expenditure is prioritised on the areas that will help us meet our Scope 1 and 2 net zero target by 2035. This 
includes actions to reduce energy consumption through efficiency measures, remove gas heating, replace HFC refrigerant 
gas with natural alternatives, increase on-site renewable electricity generation and additional procurement of electricity 
through new-to-the-planet purchase power agreements and transition our full fleet to alternative fuel by 2035.
Examples of innovative technology that we have introduced includes the installation of Refrigeration Integrated Heating 
and Cooling (RIHC) systems which replaces natural gas heating by using the refrigeration systems to provide all heating 
and cooling requirements. We replace refrigeration systems in store in line with their lifecycles so that fridges that use 
hydrofluorocarbon refrigerant gas are replaced with those that use natural CO2 refrigerants, which are also more energy 
efficient. We have an ongoing programme of installing solar photovoltaics (PV) panels across our estate, increasing 
on-site renewable electricity generation.
Changes in temperature due to climate change could negatively impact the shelf life of products we sell and increase our 
operational food waste. We are investing in technology to mitigate and reduce air infiltration within our stores to both 
minimise heating and cooling requirements and the impact of higher ambient air temperatures. This feature was 
installed in our new Hook store last year and will be rolled out to all new stores.
We work closely with external academic partners to support us in making investments in climate change solutions. 
Imperial College provides us with academic independence – we are working with them on short term studies relating 
to engineering solutions to support energy efficiency and carbon reduction programmes and a longer term project to 
understand the potential impact of climate change across our estate. We have also launched the Sainsbury’s Innovation 
Investments (S2I) initiative in partnership with Williams Advanced Engineering, to support early-stage companies who 
specialise in developing disruptive technology to tackle climate change. We have committed to investing £5 million over 
four years in early-stage companies who are developing disruptive technology to tackle climate change and giving them 
the opportunity to trial the technology within our operations. See page 38 for more information. 
Ban on the sale of new petrol/
diesel cars and vans from 2035 
leading to a reduction in 
fuel sales
  Reduction in 
carbon emissions
This year we launched Smart Charge, a brand-new, dedicated Electric Vehicle (EV) charging business that will give 
customers access to ultra-rapid EV charging points across our stores. Within our own direct operations we are 
transitioning to alternative fuel across our full fleet by 2035. 
To better understand the financial impacts of this transition risk we have performed quantitative scenario analysis 
on our Fuel category (see page 34 for more details).
Increased likelihood of heat 
events, flooding and droughts 
leading to a reduction in crop 
yields and increased 
sourcing costs
  Reduction in 
carbon emissions
  Protecting and  
regenerating nature
  Championing human rights
We are working collaboratively with our key strategic suppliers on sustainability issues to build resilience and improve 
security of supply. This includes creating climate adaptation plans and ensuring the protection of human rights across 
our supply chain. Our analysis also looks at how physical risks can impact labour capacity so that we can identify which 
supply chains and geographical locations could be most at risk of reduced labour capacity due to heat stress.
We understand the importance of working together with our suppliers to achieve a common goal. We have set up an  
Own Brand Technical Innovation Fund which aims to offer our own brand supply base opportunities to build in efficiency 
and resilience, including climate-related innovations. 
To better understand the financial impacts of these physical risks we have performed quantitative scenario analysis 
on our Produce, Cotton, Coffee and Tea categories (see page 35 for more details).
Increased likelihood of 
flooding leading to water 
damage and closure of 
stores and depots
  Water neutral by 2040
We use real-time information to identify properties most at risk of flooding and conduct extensive flood risk 
assessments across our estate. In the highest risk sites we have installed a variety of flood defence measures such 
as sandbags and hard infrastructure for longer-term flood protection.
In 2023 we piloted the Volumetric Water Benefit Accounting (VWBA – Replenish) methodology to support us to reach our 
operational water neutrality target through nature-based solutions. We purchased Replenish volumes associated with 
interventions being implemented in the Wyre catchment by the Wyre Rivers Trust, which seek to reduce the flood risk 
of the local area through upstream targeted measures to store water in times of peak flow. 
To better understand the impacts of these physical risks we have performed scenario analysis on our own operations 
(see page 33 for more details).
Climate change and Task Force on Climate-related 
Financial Disclosures (TCFD) continued
Strategy continued
Strategy b) Impact of climate-related risks and opportunities on business, strategy and financial planning continued

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Case study – Tadcaster Store Flood Protection
Tadcaster is one of our stores we have identified as at high risk of flooding. In February 2022, during Storm Franklin, our early flood warning system 
meant that we were able to put up flood defences eight hours ahead of the Environment Agency flood warning, enabling us to avoid damage from 
the heavy rain and rising River Wharfe and reopen our store quickly once the flood risk passed.
Strategy c) Resilience of strategy, taking into consideration different climate-related scenarios,  
including a 2°C or lower scenario
Since 2021, we have continued to deepen our understanding of the climate-related risks and opportunities facing our business through qualitative and 
quantitative scenario analysis. This year we expanded our analysis to model the impact of future flood risk on our own operations. Scenario analysis can 
act as a ‘stress test’ for our current business operations and supply chain and help to explore a range of different outcomes. This allows us to evaluate the 
potential effects on our strategic and financial position under each of the defined scenarios. We use the results to inform strategic thinking on how to 
manage the identified risks and opportunities.
Qualitative scenario analysis 
Our own operations 
The increasing frequency and intensity of flood events demonstrate the physical impact that climate change can have on our own operations directly through 
water damage to our infrastructure and indirectly by hindering access for our customers and suppliers. Improving our understanding of future water-related 
risks helps us inform our property investment strategy and assess the need for future building adaptations. 
For several years we have worked with a third-party risk specialist to help us actively manage flood risk across our property estate through our real-time 
flood warning system, flood emergency plans for at-risk stores and investments in flood defences. Our flood warning system uses geospatial mapping of our 
sites to predict flood location and threat level, allowing us to make timely decisions and targeted investments to minimise the impact of flooding. 
This year we expanded our qualitative scenario analysis to model the impact of future flood risk on our operations under four climate pathwaysa) (2.6, 4.5, 6 
and 8.5) up to 2100. Each store was assigned a floodability rating, measuring the frequency and flood depth to the risks of flooding from rivers, seas and 
surface level water. Over 10 per cent of our estate is assessed as ‘very high’ or ‘high’ risk of flooding and this does not significantly vary over time or across 
the four climate scenarios – this means that we are not expecting flood risk to impact a significant proportion of our estate in the future. Going forwards, 
using the store floodability rating and profitability of stores will allow us to make proactive decisions on where to perform future risk surveys and determine 
the most effective way to use capital to install physical flood defences across our estate. We will also explore how the insight can further our understanding 
of the potential financial impacts flooding could have through damage to infrastructure or loss of revenue due to store closures. 
a)	 Climate pathways refer to different scenarios and actions that can be taken to manage climate change over time. A Representative Concentration Pathway (RCP) is a greenhouse gas 
concentration trajectory adopted by the IPCC.
Our products and supply chain 
Working with a third-party climate specialist we have performed qualitative scenario analysis to evaluate the impacts of a wide range of different climate 
change risks on the product categories we sell. We considered the potential impact of 27 climate-related risks, including physical and transition risks. 
For physical risks, we considered the geographical sourcing for each of our product categories and assessed different physical risks under a high emissions 
scenario. To evaluate transition risks, we considered the greenhouse gas emissions of our different product categories, as well as how changing market 
dynamics and increased regulations could impact both production costs and revenue. 
The below table shows the most material climate-related risks identified as well as the product categories most exposed, which are reviewed annually 
by the Plan for Better Steering Committee with oversight from the Corporate Responsibility and Sustainability Committee.
Type of risk
Most material risks
Most exposed categories
Physical risks
•	 Heat events
•	 Labour capacity
•	 Drought 
•	 Flooding
•	 Produce
•	 Cotton
•	 Coffee
•	 Tea
Transition risks
•	 Regulation, including carbon taxes
•	 Changes in consumer preferences
•	 Meat, Fish and Poultry
•	 Dairy
•	 Clothing
•	 Fuel

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34  J Sainsbury plc Annual Report and Financial Statements 2024
Quantitative scenario analysis
Our products and supply chains 
To further build on the qualitative scenario analysis, we performed quantitative scenario analysis to determine the potential financial impacts of the most 
material climate risks on the most exposed product categories. The scenarios are built using data from the Intergovernmental Panel on Climate Change 
(IPCC) over two time horizons (2030 and 2050) and include a 2°C or lower scenario per the recommendations of the TCFD. These time horizons align with our 
definition of medium and long term: 
•	 1.5°C – A pathway that limits global warming to below 1.5°C (low physical risk, high transition risk)
•	 2.4°C – Described by the IPCC as an intermediate scenario (medium physical and transition risk) 
•	 4.3°C – A high emissions worst case scenario pathway (high physical risk, low transition risk)
Our analysis indicated that transition risks will be material leading up to 2030 as the global community strives to limit global warming to below 1.5°C, 
whereas the impacts of physical risks are expected to manifest by 2050 if transition goals are not met. Extending transition risk analysis beyond 2030 
introduces significant amount of uncertainty to our analysis. We have divided this section by looking at the impact of transition risk and physical risk 
separately and outlining mitigations that we are taking. We looked at the impact of transition risks, such as regulation and changes in consumer preferences, 
on the following product categories: Meat, Fish and Poultry, Clothing and Fuel. We did not include Dairy as the climate-related risks are assumed to be similar 
to Meat, Fish and Poultry. We looked at the impact of physical risks, such as heat events, labour capacity, flooding and droughts in the following product 
categories: Produce, Cotton, Coffee and Tea. 
For all quantitative scenario analysis results disclosed in this section, the impacts for each product category are considered in isolation and assumes no 
actions are taken by the business to mitigate the climate risks. The results should be treated as an indicative ‘order of magnitude’ assessment with 
significant uncertainty attached and we have used a range for the potential revenue loss to reflect this uncertainty.
Potential financial impact of climate-related transition risks on most exposed products in a low emissions scenario in 2030
To assess the financial impact associated with regulation and changes in consumer preferences, we evaluated the sale of Meat, Fish and Poultry, Clothing and 
Fuel in the UK. For regulation risks, we considered the impact of a carbon price on the Meat, Fish and Poultry category and the ban of the sale of new petrol, diesel 
and hybrid cars and vans from 2035 on the Fuel category. For Meat, Fish and Poultry the carbon prices applied in our scenario analysis align with IPCC data and 
costs are assumed to pass on directly to customers, reducing demand for the highest emission Meat, Fish and Poultry products. For Fuel we have assumed a rapid 
uptake of battery electric vehicles leading to a 50 per cent reduction in fuel demand by 2030. For consumer preference, we considered the impact of more 
climate-conscious customers favouring lower GHG emission protein and purchasing more second-hand clothing (displacing new clothing purchases).
The results show the potential revenue loss in a 1.5°C (low emissions) world in which physical risks associated with climate change are limited, but high 
transition risks are experienced as the world attempts to meet the Paris Agreement. As the results do not reflect the impact of any mitigating actions, the 
Meat, Fish and Poultry results do not capture the business opportunity of developing and promoting lower GHG animal protein and nutritionally positive 
meat alternatives to capture switching calories from existing and new customers. The Fuel result does not capture the business opportunity from providing 
customer electric vehicle charging.
 
Annual revenue loss to most exposed categories in 
isolation in 1.5°C scenario in 2030, assuming no 
actions are taken to mitigate risks:
Mitigations that are being implemented/considered as part of our strategic planning to minimise the financial 
impacts of the risks identified:
Most material 
transitional 
climate risksa):
Meat, Fish and 
Poultry
Clothing
Fuel
Meat, Fish and Poultry
•	 Working with suppliers to reduce GHG emissions in our supply chains, e.g. supplier targets, 
animal health and welfare and feed efficiency 
•	 Long-term contracts with key suppliers (e.g. Moy Park and ABP) to collaborate on 
long-term sustainability projects
•	 Development of lower GHG emission animal protein within existing product (see low 
carbon beef case study below) and promotion of nutritionally positive meat alternatives 
to capture switching calories from existing and new customers
•	 Working with third-party service providers to understand the carbon emission impacts of 
changing ingredients within ready meals
Clothing
•	 Increasing the use of recycled and alternative fibres 
•	 Exploring options for circularity programmes 
•	 Signatories of Textiles 2030, which aims to reduce the aggregate water footprint of new 
products sold by 30 per cent
•	 Target for 100 per cent of our cotton to be sourced to an independent sustainability 
standard by 2025
•	 ‘Test and trial’ projects focusing on durability in clothing blueprints to increase longevity 
of garments
Fuel
•	 Making it easier for people to transition to electric vehicles with the launch of Smart 
Charge and the rollout of our ultra-rapid charging hubs
•	 Investigating lower carbon fuel offerings at our petrol filling stations
Regulation
£50m to 
£100m 
revenue loss 
to MFP 
category in 
isolation 
Overall 
opportunity to 
business 
post-
mitigations
N/A
£2,900m to 
£3,000m 
revenue loss 
to fuel 
category in 
isolation
Smaller 
revenue loss 
risk/potential 
opportunity to 
business 
post-
mitigations
Changes in 
consumer 
preferences
£350m to 
£400m 
revenue loss 
to MFP 
category in 
isolation 
Overall 
opportunity to 
business 
post-
mitigations
£35 to 
£40m 
revenue 
loss to 
Clothing 
category in 
isolation
N/A
a)	 Risks should be considered in isolation as the complex interrelationship between multiple risks has not been considered.
Climate change and Task Force on Climate-related 
Financial Disclosures (TCFD) continued

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Case study – ‘Lower Carbon Beef Scheme’
In September 2023, we launched a new Taste the Difference Angus Aberdeen beef range – offering a 25 per cent lower carbon footprint compared to 
UK average consumed beef – reducing emissions through a combination of superior cattle breeding and animal management, which results in more 
sustainable, highly consistent and traceable beef product for our customer. The range has been intentionally designed to provide greater security and 
stability for farmers through fixed, forward pricing and free-of-charge farm management technology. 
Potential financial impact of climate-related physical risks to most exposed crops in high emissions scenarios 
in 2050
To assess the financial impact of the increased likelihood of heat events, reduced labour capacity, drought and flooding, we evaluated the production of Produce, 
Cotton, Coffee and Tea in our key sourcing locations. We considered two scenarios, one where global warming reaches 4.3°C (high emission) as a result of no 
global action taken to reduce emissions, leading to extreme physical risks manifesting in the long term and a 1.5°C (low emission) scenario where the Paris 
Agreement is met but physical risks are still experienced, albeit more mildly. The below table shows the results of the 4.3°C (high emission) scenario only.
Our scenario analysis considered the impacts of these acute physical risks and the resulting diminished or lost crop yields that would result in increased 
supply costs. We assume these additional costs are passed on directly to the consumer, reducing demand and impacting our revenue. 
Annual revenue loss to most exposed crops in isolation in  
4.3°C scenario in 2050, assuming no actions are taken to mitigate risks:
Mitigations that are being implemented/considered as part of 
our strategic planning to minimise the financial impacts of 
the risks identified:
Most material 
physical climate 
risksa):
Produceb)
Cotton
Coffee
Tea
•	 Engage: continue to work closely with our 
suppliers to understand growing locations 
and associated sustainability programmes, 
e.g. engaging with factories who have low 
performance in water conservation on their 
water resilience plans 
•	 Explore supply chain adaption options with 
suppliers: higher altitude locations, lower flood 
risk areas, vertical farming, glass growing 
structures, installing reservoirs, drainage 
channels, using drought and temperature-
resistant crop strains
•	 Investment: supporting suppliers on projects 
that contribute to climate resilience through our 
Own Brand Technical Innovation Fund
•	 Certification: sourcing of sustainable crops 
through Fairtrade, Rainforest Alliance and BCI 
Cotton, expanding to instant coffee from 
December 2024 and exploring other types 
of cotton
•	 Human rights: commitments to ensure that 
our transition to net zero is just and equitable 
for the communities we source from
Heat events
£35m to £40m 
revenue loss to 
crops
£90m to £95m 
revenue loss to 
crops
£30m to £35m 
revenue loss to 
crops
£40m to £45m 
revenue loss to 
crops
Labour capacity
 N/A
 N/A
£10m to £15m 
revenue loss to 
crops
£20m to £25m 
revenue loss to 
crops
Drought 
£25m to £30m 
revenue loss to 
crops
£20m to £25m 
revenue loss to 
crops
£10m to £15m 
revenue loss to 
crops
£0m to £5m 
revenue loss to 
crops
Flooding
£0m to £5m 
revenue loss to 
crops
£10m to £15m 
revenue lost factory 
operation days
£0m to £5m 
revenue loss to 
crops
£0m to £5m 
revenue loss to 
crops
Key sourcing 
locations:
Spain 
UK
Benin 
Brazil 
India 
U.S.A  
Bangladesh 
(manufacturing)
Brazil 
Columbia 
Honduras 
Peru
India 
Kenya 
Malawi 
Rwanda
a)	 Risks should be considered in isolation as the complex interrelationship between multiple risks has not been considered.
b)	 Produce considers citrus fruits, lettuce, berries and potatoes grown in Spain and the UK.
To assess the resilience of our business to the impacts of climate change we reviewed how our analysis could impact our revenue losses within our most 
exposed product categories. Each year we incorporate the analysis into the Group’s impairment review to ascertain the impact that climate change could 
have on the carrying value of the Group’s store assets, by modelling the impact on cash flows (page 160). The results do not have a material impact on the 
Group’s impairment considerations and the Group remains resilient to climate impacts under the scenarios assessed. Finally, Sainsbury’s Bank considers 
climate-related risks as part of its Internal Capital Adequacy Assessment Process (ICAAP). Sainsbury’s Bank concluded there were limited impacts related to 
both the physical and transition climate-related risks over the next 30 years as the Bank does not have a mortgage portfolio or undertake any corporate 
lending. The Bank determined that its strategy remained resilient to these risks and no significant changes to its strategy was required.

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Risk management
Risk management a) Processes for identifying and assessing climate-related risks
Climate risk is one of our principal risks and is a key pillar in our Plan for Better strategy. 
We identify climate-related risks through quarterly bottom-up divisional and governance forum risk assessments and then review annually top-down in a 
dedicated climate risk workshop to assess completeness. The process manages our ability to deliver our Plan for Better strategy, progress towards our Scope 
1, 2 and 3 targets and consideration of physical and transition climate risks impacting our operations and supply chain, including existing and emerging 
regulatory requirements. 
Climate risks are mapped against our corporate risk metrics, including financial and reputational and likelihood of occurring (from remote to almost certain). 
To assess the effectiveness of existing climate controls, each risk has two positions: gross risk (before existing controls); and net risk (after existing controls). 
Management set a target risk (management’s target position) to align any net risks with corporate risk tolerance. Climate risks where the impact is not yet 
well understood are captured separately on an emerging risk map (plotted against likelihood of occurring and timeframe).
Risk management b) Processes for managing climate-related risks
Each climate risk is assigned a Director-level business owner who is responsible for monitoring and mitigating the risk. Climate risks are agreed annually 
at the Plan for Better Steering Committee with Board level oversight from the Corporate Responsibility and Sustainability Committee. Climate risks and 
mitigations are monitored throughout the year by the Plan for Better business leads and Steering Committee. These risks are considered in tandem with 
other business-related risk (for example those relating to human rights) to form a holistic view of the impact of the risk on the business. Climate risks are 
prioritised according to the heat map which plots impact and likelihood. To further enhance capacity and ownership of climate risks across the business, 
the Steering Committee has cross-divisional representation at Director level.
Risk management c) Processes for identifying, assessing and managing climate-related risks are integrated into the 
organisation’s overall risk management
The output from this climate risk process, in aggregate, is elevated to the corporate risk map owned by the Board with support from the Audit Committee and 
informs the Environment and Social Sustainability principal risk shown on page 61. The risk management process for climate is in line with the business-wide 
risk management framework described on pages 53 to 61.
Case study – ‘UK-grown Brassicas’
One of the ways we mitigate flood risk is to have multiple growing locations for a crop. For example, for UK-grown Brassicas we use three distinct 
areas – Cornwall, East Anglia and Scotland. These areas have similar growing conditions but are far enough apart to reduce the risk of all areas 
suffering from a severe weather event.
Climate change and Task Force on Climate-related 
Financial Disclosures (TCFD) continued

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Metrics and targets
Metrics and targets a) Metrics used to assess climate-related risks and opportunities in line with its strategy and risk 
management process
The below table shows the key metrics and methodology used to measure climate strategy and risk management.
Plan for Better Commitment
Metric
Methodology
Reduction in carbon 
emissions
Absolute GHG emissions within our own 
operations (tCO2e)
Absolute, market-based, Scope 1 and 2 GHG emissions in the financial year for 
Sainsbury’s Group and supported by third party South Pole and verified by ERM CVS 
(limited assurance ISAE 3000). Follows the GHG protocol.
Electricity which comes from renewable 
sources (%)
The amount of renewable energy used by Sainsbury’s Group as a proportion of the 
total electricity consumption in the financial year, supported by third party South 
Pole. Combination of energy sourced directly from on-site solar and wind farms as 
well as certificate-backed renewable electricity from the UK.
Absolute Scope 3 GHG emissions (tCO2e)
Near term (2030) target boundary includes emissions from the material categories: 
1a) purchased goods for resale, 4) upstream transport and distribution, and 11) our 
customers’ use and consumption of the products we sell. Emissions associated with 
business travel is verified by ERM CVS (limited assurance). Follows the GHG protocol. 
Suppliers disclosing through CDP 
(% of emissions)
Suppliers disclosing through CDP, which is an environmental impact 
disclosure system.
Suppliers disclosing through Manufacture 
2030 or Higg (% of emissions)
Suppliers disclosing through Manufacture 2030 or Higg, which are environmental 
impact disclosure systems.
Suppliers with SBTi 1.5oC net zero targets 
approved (% of emissions) 
Suppliers with approved SBTi 1.5oC aligned net zero targets recorded on the SBTi 
platform. This is considered the gold standard for GHG emission targets.
Suppliers who have signed up to the UK Soy 
Manifesto (% of soy footprint)
Critical suppliers who have signed up to the UK Soy Manifesto. The manifesto is an 
industry commitment to sourcing deforestation and conversion-free soy by 2025. 
Suppliers disclosed their information through third party 3Keel. 
Reduction in 
water use
Absolute water usage within our own 
operations (m3)
Absolute water usage in the financial year for both Sainsbury’s and Argos, supported 
by third parties WaterScan and South Pole and verified by ERM CVS (limited 
assurance post-publication of annual report).
Healthy and 
sustainable diets
Healthy and better for you sales tonnage as 
a proportion of total sales tonnage (%)
Food sales tonnage of healthy, healthier choice and better for you products as a 
percentage of total food sales tonnage in the financial year (exclusive of beers, 
wines, spirits and baby food). Healthy, healthier choice and better for you defined 
using a nutrition criteria tool, including criteria from the Eatwell Guide which is 
lower in GHG emissions.
Reduction in food 
waste
Food waste to anaerobic digestion as a 
percentage of food handled (%)
Food waste to anaerobic digestion as a percentage of food handled for the financial 
year, as per the WRAP recommendation we calculate this as tonnes food waste/
(tonnes food product sold as intended + tonnes food waste + tonnes food surplus 
sent to other destinations).
Nature
Soy sourced to an independent 
sustainability standard (%)
Sustainably sourced soy tonnage as a percentage of total soy tonnage footprint, 
as calculated by third party 3Keel.
Palm oil sourced to an independent 
sustainability standard (%)
Sustainably sourced palm oil tonnage as a percentage of total palm oil tonnage 
footprint, as calculated by third party 3Keel.
Timber sourced to an independent 
sustainability standard (%)
Cubic metre volume of assessed sustainably sourced timber products sold as a 
percentage of total cubic metre volume of all assessed timber products sold during 
2023 calendar year. Sustainability assessments were carried out by third party Track 
Record Global Ltd.
Cotton sourced to an independent 
sustainability standard (%)
Cotton tonnage sustainably sourced and certified by third party Better Cotton 
Initiative (BCI) as a percentage of total cotton tonnage sourced during the 
financial year.
Number of woodland trees planted (number)
Total number of trees planted in the financial year through partnership with the 
Woodland Trust.

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38  J Sainsbury plc Annual Report and Financial Statements 2024
Metrics and targets continued
Metrics and targets a) Metrics used to assess climate-related risks and opportunities in line with its strategy and risk 
management process continued 
In line with TCFD recommended disclosures, we are also required to report on cross-industry metrics to enable comparability across different sectors. These 
metrics are deemed important proxies for measuring climate-related risks and opportunities.
Metric Category
Unit of Measurement
Narrative
GHG Emissions
Absolute Scope 1, Scope 
2 and Scope 3
MT of CO2e
Absolute GHG emissions for Scopes 1, 2 and 3 are included within our climate-related metrics table on page 
39. This includes our most recently approved 1.5oC aligned SBTi targets.
Transition and 
physical risks
Amount and extent 
of assets or business 
activities vulnerable 
to transition or 
physical risks
Percentage
In our own operations we assessed that over 10 per cent of stores are at ‘high’ or ‘very high’ risk of a flood 
event occurring, causing damage to stores and potential revenue loss from closure. 
The product categories that we have performed climate scenario analysis covers over 25 per cent of total 
revenue. Our scenario analysis focuses on our most material transition and physical risks: heat events, 
reduced labour capacity, droughts, flooding, regulation and changing consumer preferences. 
Our quantitative scenario analysis shows the potential financial impact of climate change on our most 
exposed product categories. We use these results as assumptions within our financial planning models 
to determine whether these risks resulted in material impacts on performance or position as at year-end. 
As part of our Group impairment work we considered all of the climate-related risks identified in our 
quantitative scenario analysis. The most material transitional risk was the impact on fuel due to legislation. 
As such, the Group’s current year impairment review included cash flow assumptions in relation to the 
expected future revenue loss within the fuel category. The other climate change risks identified did not 
result in a material financial impact to the accounts.
Further details can be found in our scenario analysis page 34 and note 17 of the financial statements on page 160.
Capital deployment
Amount of capital 
expenditure, financing, 
or investment deployed 
toward climate-related 
risks and opportunities
Reporting currency
We have committed to significant capital investment to become net zero in our own operations by 2035 and 
our future capital investment is aligned with our decarbonisation roadmap. This year we spent £18 million 
on Solar PV optimisation and the installation of solar, refrigeration efficiency and engineering innovation. 
More information can be found within our 2024 CDP submission found on our website in the reports and 
policies section.
Our capital spend to date has focused on the decarbonisation of heat, increasing the amount of renewable 
energy, energy efficiency, the removal of hydrofluorocarbon refrigerant gas, transitioning our fleet to 
alternative fuels.
We have also invested in our Smart Charge Electric Vehicle (EV) charging network. 
Climate-related 
opportunities
Proportion of revenue, 
assets, or other business 
activities aligned with 
climate-related 
opportunities
Amount or 
percentage
The impact of climate issues informs our risk management and drives our strategy to identify and consider 
climate-related opportunities that we can benefit from.
Part of our capital expenditure is used to remove natural gas heating and replace it with Refrigeration 
Integrated Heating and Cooling (RIHC) systems – using the refrigeration systems to provide all heating and 
cooling requirement in 51 stores. We have fully mapped our estate to help us make decisions on the most 
effective way to deploy capital expenditure to reduce emissions. Our mapping tool allows us to identify which 
sites need to be invested in and when. Due to the success of our Hook store last year, we have used this as a 
model for rolling out new stores that use similar technology (such as Talbot Green and Southport this year).  
Our Sainsbury’s Innovation Investments (S2I) initiative has attracted 742 opportunities to date and we are 
considering next stages for investment in 13 opportunities.
Internal carbon prices
Price on each ton of 
GHG emissions used 
internally by an 
organisation
Price in reporting 
currency, per MT of 
CO2e
An Internal Carbon Price (ICP) is a method used by companies to appraise investments, aid decision-
making and manage risks for projects that relate to transitioning to a low-carbon economy. By assigning 
a monetary price to GHG emissions, it allows businesses to efficiently deploy capital and assess the best 
course of action to address climate-related risks and opportunities.
Following detailed modelling using real-life investment scenarios to determine how an ICP could impact our 
decisions, considering required net present value/gross investment hurdle rates, it was determined that 
investment in initiatives delivering carbon reductions did not currently require any further support to justify 
expenditure and that the pipeline of current projects hit the required hurdle rates set by the business. Carbon 
reduction initiatives outside of the current pipeline may benefit from the introduction of a carbon price.
As part of our carbon emission footprinting we assigned category level emission factors at an individual 
product level based on the most appropriate industry average data available. We are developing an internal 
carbon dashboard which will be made available to our commercial teams to facilitate better linkages 
between internal financial budgets and SKU level carbon emission factors.
We will continue to evaluate whether an ICP is a mechanism that may be relevant to the organisation in future.
Remuneration
Proportion of executive 
management 
remuneration linked to 
climate considerations
Description
Our Plan for Better metrics, which include climate-related metrics, form part of the Executive Directors’ 
long-term incentive arrangements. 
Further details can be found on page 116.
Climate change and Task Force on Climate-related 
Financial Disclosures (TCFD) continued

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Metrics and targets b) Scope 1, Scope 2 and Scope 3 greenhouse gas (GHG) emissions and the related risks
Scope 1 and 2
Financial year
Scope 1 and 2 GHG 
market-based 
emissions (tCO2e)
Reduction against 
baseline (%)
2018/19 (baseline)
949,744
— 
2019/20
840,680
11.5%
2020/21
817,420
13.9%
2021/22
746,681
21.4%
2022/23
461,692
51.4%
2023/24
458,973
51.7%
For a more detailed breakdown of our Scope 1 and 2 GHG emissions, please see our Streamlined Energy and Carbon Reporting (SECR) disclosure on page 119. 
We have a proven track record of delivering GHG emissions reductions in our own operations and a robust plan to reach net zero by 2035; however, there is 
some risk as our transition plan requires industry innovation, such as a commercially viable alternative fuel solution for heavy goods vehicles. Our near-term 
target is to reduce our Scope 1 and 2 GHG emissions by 68 per cent by 2030/31. Further details on our transition to net zero within our own operations including 
the main actions we are taking can be found on page 41.
Scope 3 
Baseline 2018/19 tCO2e
Scope 3 GHG target boundary emissions
25,652,904
FLAG
Energy/Industry
8,168,793
17,484,111
Of which category:
1a – purchased goods for resale
8,168,793
5,798,324 
4 – transport
812,782
11 – consumer use
10,873,005
In January 2024 we obtained SBTi approval of our revised near-term and net zero science-based Forest, Land and Agriculture (FLAG) targets, following on 
from approval of our 1.5oC aligned net zero by 2050 target, in December 2023. Our Scope 3 baseline for our near-term 2030 target covers emissions from the 
following material categories: 1a) purchased goods for resale, 4) transport and 11) consumer use.
We are continuously improving the accuracy of our Scope 3 footprint. Each year we review the appropriateness of the data sources we use to ensure that 
our footprint is as accurate as possible. To follow the SBTi’s new FLAG requirements, we have updated our emission factors to product level FLAG-compliant 
emission factors based on a third-party database from Agribalyse. Because of this, we have restated our baseline. Whilst we are not able to accurately report 
our Scope 3 emissions for the current year it remains a priority. We know that we need to focus on accurately reporting on our Scope 3 emission reductions 
and move beyond industry average factors. We are collaborating with other retailers and WRAP on reporting Scope 3 emissions which includes accurately 
and transparently reporting emission reductions. 
At present we continue to use industry average carbon emission factors to calculate our Scope 3 footprint. Our current methodology enables us to identify 
our most carbon-intensive products and the suppliers who constitute the top 80 per cent of our Group emissions. We are actively working towards an 
aligned industry approach to measure supplier-specific emissions as this is the most effective way to track emissions reductions within our own supply 
chain. However, in the absence of a universally recognised approach, we are engaging with our strategically important suppliers to carry out lifecycle 
analyses of the products they sell us and continue to request suppliers to disclose emissions data through the following environmental impact disclosure 
systems: Manufacture 2030 and Higg. 
We request all of our suppliers to disclose on either Manufacture 2030 or Higg and our key suppliers (covering 80 per cent of our emissions footprint) to set 
SBTi-approved targets. 
We are engaging directly with our strategically important suppliers to understand their carbon reduction roadmaps and we are working with the British 
Retail Consortium (BRC) Mondra Coalition, a third-party service provider, to understand the environmental impact of our emissions at a product and 
ingredient level across 5,000 products to accelerate decarbonisation and enable effective business decision-making. This is a pilot initiative involving 
many stakeholders in the industry thereby helping to steer the industry to a consistent approach to Scope 3 data collection.
We recognise we cannot solve the challenges relating to reducing Scope 3 emissions on our own and are therefore committed to work at industry level to find 
a solution. We continue to participate in industry-wide working groups and are signatories, alongside other retailers, to the WWF Retailers’ Commitment for 
Nature, which involves a commitment to halve the environmental impact of UK baskets by 2030. More information on our Scope 3 strategy can be found in our 
Climate Transition Plan section on pages 42 to 43. 

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Metrics and targets continued
Metrics and targets c) Targets used to manage climate-related risks and opportunities and performance against targets
The following metrics and targets are used to monitor progress against climate-related risks and opportunities and are embedded in our Plan for Better. 
These metrics and targets governed by the Plan for Better Steering Committee with oversight from the Corporate Responsibility and Sustainability 
Committee. We understand the importance of setting GHG emission reduction targets and have recently obtained SBTi-approved FLAG compliant near-term 
and net zero targets. We have long-term remuneration targets for Executive Directors on (see page 116 for more details).
Plan for Better 
Commitment 
 
Metric 
 
Baseline 
Results 
Target
2022/23 
2023/24 
Reduction in  
carbon emissions 
Absolute GHG emissions within our own operations 
(tCO2e) 
949,744 tCO2e
2018/19
461,692 tCO2e
458,973 tCO2e
Net zero by 2035/36 68% 
by 2030/31
Electricity which comes from renewable sources (%) 17% 2019/20
100% 
100%
100%
Absolute Scope 3 GHG emissions (tCO2e)
25,652,904 tCO2e 
2018/19a)
n/a
N/A
72% FLAG and 90% energy/
industry emissions reduction 
by 2050/51
36.4% FLAG and 50.45% 
energy/industry emissions 
reduction by 2030/31
Suppliers disclosing through CDP (% emission)b)
N/A
54.8%
63.8%
80% of emissions by 2025/26
Suppliers disclosing through Manufacture 2030 or 
Higg (% emissions)b)
N/A
43.8%
57.2%
80% of emissions by 2025/26
Suppliers with SBTi 1.5oC net zero target approved 
(% emissions)b)
N/A
Less than 2%
6%
80% of emissions by 2025/26
Critical suppliers who have signed up to the UK Soy 
Manifesto (% of soy footprint)
86% 2022/23
86%
88%
100% by 2025/26
Reduction in 
water use
Absolute water usage within our own operations (m3) 3,224,000 m3 
2018/19 
2,655,753 m3 c)
2,621,341 m3
Water Neutral 2040/41
Healthy and 
sustainable diets
Healthy and better for you sales tonnage as a 
proportion of total sales tonnage (%) 
82% 2019/20
81.2%
80.9%
85% 2025/26
Reduction in food 
wasted)
Food waste to anaerobic as a percentage of food 
handled (%)
0.728% 2019/20
0.645%
0.627%
0.364% 2030/31
Nature 
Soy sourced to an independent sustainability 
standard (%) 
6% 2019
43%
88%
100% 2025
Palm oil sourced to an independent sustainability 
standard (%) 
99.1% 2019
100%
100%
100% 2025
Timber sourced to an independent sustainability 
standard (%)e)
58% 2019
83%
93%
100% 2025
Cotton sourced to an independent sustainability 
standard (%) 
76% 2019 
98%
97%
100% 2025 
Number of woodland trees planted (number) 
493,750 trees 
2019/20 
1,114,583
1,292,583
1,500,000 (cumulative) 2025 
a)	 Scope 3 baseline has been restated from 26,663,081 tCO2e to 25,652,904 tCO2e on approval of new SBTi targets. The change is primarily driven by more accurate input data and emission factors. 
b)	 Scope 3 engagement metrics have been restated in 2022/23 to show the percentage of emissions covered by our suppliers who have responded to the relevant platforms. The percentage of 
emissions covered is based on the 2021/22 emissions data which was used to generate the key carbon supplier list for this year’s engagement cycle, therefore it does not align with current 
year emissions.
c)	
2022/23 Water consumption has been restated from 2,655,817m3 to 2,655,753m3 following receipt of the ERM audit certificate which was received post signing of the 2022/23 Annual Report.
d)	 Food waste metric has been restated to show food waste to anaerobic digestion relative to total tonnes handled as our primary food waste metric as is considered best practice by 
The Waste and Resources Action Programme (WRAP).
e)	
2022/23 Timber result has been restated from 92 per cent to 83 per cent due identification of incorrect item weights being used in the third party TRG report. The baseline has also been 
restated from 60 per cent to 58 per cent.
 
Climate change and Task Force on Climate-related 
Financial Disclosures (TCFD) continued

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Introduction 
We are committed to protecting and restoring our planet and supporting a transition to a low carbon economy. To achieve this, we have set ambitious 
near-term and net zero targets across our Scope 1, 2 and 3 greenhouse gas emissions aligning to a 1.5oC scenario. We have a clear strategy to drive progress 
against these targets which, in line with emerging best practice, acknowledges the interconnectedness of action on diets, nature and climate and works to 
ensure no negative unintended consequence with many of our Plan for Better commitments supporting our carbon reduction strategy (see our Plan for 
Better Rerport for details on our targets). 
Driving progress 
Reduction targets from 
baseline
Absolute emissions 
target tCO2e
2018/19 Baseline 
949,744
2023/24 
51.7%
458,973
2030 near-term target 
68%
304,812
2035 net zero target
100%
—
Own operations – Scope 1 and 2 – Net zero by 2035
We have a strong track record of reducing greenhouse gas emissions in our own operations (Scope 1 and 2), over the last 17 years, reducing our emissions 
by 51.7 per cent from our 2018/19 baseline, with progress being delivered through energy efficiency programmes, including a move to 100 per cent LED lights 
across our estate, replacement hydrofluorocarbon refrigerant gases with natural alternatives, electrification of our heating and moving to 100  per cent 
renewable energy since 2022, committing to long-term purchasing of renewable energy from new-to-the-planet power purchase agreements.
In collaboration with Imperial College we have developed a transition roadmap for our entire estate and direct operations which provides modelled scenarios 
up to 2035, indicating projected GHG emissions and ‘when’ and ‘where’ investments should take place to generate adequate returns whilst meeting our 
targets. We have committed to significant capital investment to achieve net zero by 2035 across our own operations, and leveraged our transition roadmap to 
ensure the business makes targeted investments aligned to carbon mitigation efforts. This investment is built into our corporate financial plan, with capital 
allocation aligned with our decarbonisation roadmap and has been approved by the Board (see governance for overview of key decisions). In 2022 we also 
pledged to invest at least £5 million over the next four years in the Sainsbury’s Innovation Investments (S2I), an initiative in partnership with Williams 
Advanced Engineering to help accelerate dynamic start-up companies in developing, testing, and deploying transformational sustainable technologies, 
to achieve our net zero ambitions, reduce water usage and support the wider food retail sector.
Our strategy is focused on emissions reductions in three areas outlined in the following table. The success of our Scope 1 and 2 strategy is dependent on 
prioritising and having access to the required finances to carry out our capital programme, the availability of suitable innovation technology and being able 
to implement the latest engineering solutions in the most efficient way possible, whilst also considering the associated business cases.
Strategy
Proportion of 
emission footprint 
Key actions 
Progress to date
Logistics:  
Zero carbon vehicles 
and infrastructure
53%
•	 Transitioning our entire delivery fleet to electric or 
hydrogen powered by 2035
•	 Moving the majority of company cars to electric 
and hybrid 
•	 Exploring a range of solutions across property and 
logistics through S2I
•	 Nine Elms uses a fully electric delivery fleet 
•	 Further trials ongoing
Refrigerants:  
Switch to natural 
refrigerants
26%
•	 Replacing our remaining refrigeration systems that 
use hydrofluorocarbon (HFC) refrigerant gas with 
natural alternatives
•	 Working with external partners to develop solutions for 
using natural refrigerant gas
•	 Removing refrigerant gas in logistics
•	 Align refrigeration replacements with equipment 
lifecycles by prioritising stores where the fridges need 
replacing first, either due to age or condition
•	 51 stores have switched to natural refrigerants
•	 Net zero stores (Hook, Talbot Green)
Heating:  
Electrification of heat
21%
•	 Remove the use of gas heating and replace with our 
Refrigeration Integrated Heating and Cooling (RIHC) 
and heat pumps programme
•	 29 RIHC system installations
Whilst we have transitioned to purchasing 100 per cent renewable electricity, our focus remains on energy efficiency to reduce electricity consumption. We 
will maintain our commitment to 100 per cent renewable electricity, on-site generation, secure long-term power purchase agreements with new-to-the-planet 
windfarms and energy efficiency programmes to support the switch to electrification of heat and transport as well as mitigating costs.
Climate Transition Plan (TCFD)

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42  J Sainsbury plc Annual Report and Financial Statements 2024
Value chain – Scope 3 – net zero by 2050
Emission reduction targets from our 2018/19 target 
boundary baseline
Energy/Industrial/
Transport (non-FLAG) 
emissions 
Forest, land and 
agriculture (FLAG) 
emissions
2030 near-term target 
50.4%
36.4%
2050 net zero target
90%
72%
We know that 96 per cent of our emissions are in our value chain (Scope 3), 
with 2781 suppliers making up 80 per cent of the emissions covered by our 
2030 Scope 3 target. SBTi have approved our Scope 3 targets, which are in 
line with limiting global temperature increases to 1.5oC and FLAG-compliant.
  Purchased goods and services
47.35%
  Upstream transport
2.76%
  Use of sold products
36.86%
  Other
13.03%
Total Scope 3 baseline emissions
1	
The number of suppliers changes slightly annually with our annual calculations of emissions based on most recent volumes and product ranges.
Climate Transition Plan (TCFD) continued
Our strategy is focused on emissions reductions in three areas outlined below:
Strategy
Proportion of 
emission 
footprint 
Key activities
Progress to date
Production of 
products
Agriculture and 
land management 
100% FLAG 
emissions 
•	 Create supplier working groups on key 
climate-related topics
•	 Develop incentive initiative schemes 
for suppliers 
•	 Improve farm-level efficiencies and yield 
and work to reduce food waste, fertiliser 
and pesticide use
•	 Continue to develop nature positive/
regenerative agriculture principles 
including soil health improvements and 
where relevant, supporting through 
certification schemes
•	 Deliver our commitment to zero 
deforestation by 2025, focusing on supply 
chain traceability, certified materials and 
policy development in high-risk 
commodities
•	 Created working groups with strategic suppliers 
focused on soil and fertiliser use
•	 Enhanced our point-based reward system for our 
Sainsbury’s Dairy Development Group, which rewards 
suppliers for on-farm initiatives that improve animal 
welfare and environmental outcomes 
•	 Agroforestry advice scheme: a project offering free 
advice to farmers and producers in our supply chain 
on planting the right trees in the right places on 
farms 
•	 Collaboration with The Land App and the UK Centre 
for Ecology and Hydrology: working with farmers 
and producers in Great Britain to enable them to 
map their biodiversity and land use footprint and 
improve biodiversity and climate resilience within 
their farming systems
•	 Internal policies on deforestation for timber and 
rubber requiring certified products supports 
sustainable forest management and ensure these 
products do not contribute to deforestation
Supplier 
operations
29%
•	 Engage suppliers on energy efficiency and 
track transition to renewable energy use
•	 Collaborate to reduce waste through 
circularity initiatives, packaging and food 
waste reduction
•	 Track environmental performance at 
supplier site-level
•	 Collaborate with suppliers on product 
development, innovation and efficiencies
•	 M2030 and Higg platforms provide data insights on 
where collaboration or support is needed to 
overcome barriers to climate action
•	 Working with suppliers in product development, e.g. 
crownless pineapples, vacuum-packed beef, lower 
carbon beef
Healthy and 
Sustainable diets
•	 Making it easier for customers to make 
healthy, affordable, accessible, 
sustainable diet choices 
•	 Reduce consumption of high emission 
products through reformulations, 
innovation, range change and promotion
•	 Collective industry action to encourage 
improvements to consumer diets
•	 Join or create working groups/and 
coalitions to support research and 
policy advocating
•	 We are calling for collective change on issues where 
sector-wide action is needed, e.g. common 
definitions of ‘healthier’, through the Food Data 
Transparency Partnership (FDTP), consistent 
disclosures for a more sustainable diet, aligned 
disclosures for investor benchmarks on health 
(Access to Nutrition Initiatives (ATNI)), and 
independently evaluating initiatives to help support 
healthier purchases (Institute of Grocery 
Distribution (IGD), FIO-FOOD)
•	 BRC engagement on product-level emission 
footprinting, IGD on Eco Labelling development  
and FDTP/WRAP engagement to develop a food 
sector approach to reporting and disclosure for 
Carbon reporting

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Strategy
Proportion of 
emission 
footprint 
Key activities
Progress to date
Supply chain 
transport
4.3%
•	 Increase usage of sustainable 
shipping fuels
•	 Lower carbon transport alternatives
•	 Map modes of transport and distances
•	 Participate in working groups focused on 
innovation in transportation
•	 Signatory of the Cargo Owners for Zero Emission 
Vessels (coZEV)’s 2040 Ambition Statement
Use of products
Fuel
48.3%
•	 Making it easier for people to transition to 
electric vehicles with the launch of Smart 
Charge and the rollout of our ultra-rapid 
charging hubs 
•	 Investigating lower carbon fuel offerings 
at our petrol filling stations
•	 Launch of EV charging points
Acknowledging the uncertainties for Scope 3
By definition, Scope 3 is beyond our direct control which creates uncertainty in meeting our Scope 3 targets. Our plan maps out how best to engage with key 
stakeholders and drive change but there are dependencies and critical success factors beyond value chain stakeholders. For FLAG emissions, transparency of 
the whole supply chain for all products is an ongoing challenge we’re solving through different mechanisms (e.g. complying with EU Deforestation Regulation 
and engagement with high-risk commodities). National farming policies are also critical success factors for Scope 3. Within supplier operations and transport, 
our Scope 3 plan depends on infrastructure changes to support the transition to renewables and EVs, as well as progress in shipping and aviation emissions 
reductions. Healthy and sustainable diets requires exploring mechanisms across industry and with government to explore optimum nutritional and 
sustainable diets, engaging customers while also providing range of customer choice.
Stakeholder engagement (including governance)
Effective engagement is fundamental to achieving our Scope 3 reduction targets and underpins our Scope 3 strategy and the success of the actions we have 
outlined in the five distinct areas above. We are committed to playing our role in mobilising action across our entire value chain. Within our supply chain we 
have focused our engagement with our most material suppliers, asking them to set 1.5oC net zero science-based targets through the SBTi by 2025/26, and 
supporting them to create emission reduction plans (see a summary of our engagement strategy below). We are committed to supporting our suppliers on 
key issues through collaboration and engagement and understanding where they are on their journey through disclosure frameworks such as Manufacture 
2030 and Higg. We actively participate in industry working groups and have found this has been key to progressing Scope 3 accounting and reporting. 
Working with the Government is fundamental to achieving the global ambition and we understand the important role we play as a leading food retailer. 
We are also doing what we can to influence customer behaviours and making it easier for our customers to support our net zero targets.
Stakeholder group
Engagement strategy
Value chain
•	 Identify key suppliers for engagement
•	 Ask key suppliers to set 1.5oC net zero science-based targets (to match our own)
•	 Create supplier working groups focused on key climate-related topics, projects relating to efficiency and innovation in 
products and services
•	 Develop incentive initiative schemes for suppliers
•	 Engage with and encourage suppliers to set net zero targets and disclose on environmental disclosure platforms to collect 
environmental performance data 
•	 Collaborate with suppliers on product development, innovation and efficiencies
•	 Work closely with our insights team to understand customer behaviours
Industry
•	 Participate in leading retail working groups to facilitate collective action
•	 Collaborate with third-party providers towards innovation
Government, public sector 
and civil society
•	 Establish company policy position
•	 Join or create working groups/lobbying groups/researchers
•	 Engage with Government-led groups
We leverage robust internal governance for oversight and decision-making across our Plan for Better. We also engage our stakeholder groups widely to drive 
action towards a low carbon economy. For more detail on the key challenges we face, the issues we engage stakeholders on, and our engagement channels 
see our Plan for Better Report (www.about.sainsburys.co.uk).
Reporting and disclosure 
We monitor and report our progress transparently on our Plan for Better annually and through this disclosure we outline our high-level strategy and plans to 
transition to a low carbon economy. These key activities will form the basis of our future Climate Transition Plan. We have engaged in consultation with the 
Transition Plan Taskforce (TPT) and have contributed to the developments of both the sector-neutral and sector-specific TPT framework. We acknowledge 
that our transition plan will be an iterative document and will annually report progress against our plan within our TCFD disclosure.

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Financial Statements
44  J Sainsbury plc Annual Report and Financial Statements 2024
Key Performance Indicators
Operational
Grocery market share performance (%)
Definition: Sainsbury’s grocery market share of total market and of full 
choice supermarkets measured by Nielsen Volume Market share. 
11.5%
in 2023/24
Customer satisfaction (score)
Definition: The percentage of ‘highly satisfied’ answers out of the total 
sample in response to the following question: Based on your most recent 
visit or online order to this Sainsbury’s, how satisfied were you with your 
overall experience?
+190bps
since 2019/20 baseline
Plan for Better commitment
Definition: Our Plan for Better sets out our sustainability goals across 
our whole business, outlining our priority areas of focus, our key 
commitments and our progress. See below for status against targets 
in the priority areas.
Engagement – Ahead of target
Diversity and Inclusion – Behind target, but made progress
Carbon Scope 1 and 2 – Ahead of target 
Carbon Scope 3 – Industry reporting challenges
Food waste – Behind target 
Healthy and sustainable diets – Behind target
Plastic – Low end of target range
Colleague engagement (score)
Definition: Percentage of our colleagues who feel that we are a 
great place to work. Colleague engagement score out of 100 from the 
internal, annual ‘We’re Listening’ survey. Target to maintain strong 
engagement score.
+300bps
in 2023/24
Diversity and inclusion
Definition: We have three internal measures for diversity and inclusion, 
which come together to form a colleague representation target for 2024.
We have grown representation 
across all our colleagues’ 
measurements from 2021-24, 
hitting one of our stretch targets.
Prerana Issar
Chief People Officer
2023/24
2023/24
2023/24
2023/24
11.5
21.8
+190
+300
2022/23
2022/23
2022/23
2022/23
11.3
21.1
+40
+300
2021/22
2021/22
2021/22
2021/22
11.3
20.8
+230
+200
2020/21
2020/21
2020/21
11.4
20.5
+220
Total market share
Customer satisfaction bps
Colleague engagement bps
Share of full choice supermarkets

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Financial Statements
J Sainsbury plc Annual Report and Financial Statements 2024  45
Return on capital employed (%)
Definition: Underlying profit before interest and tax, divided by average 
net assets excluding pension deficit/ surplus, less net debt, calculated on 
a 14 point basis. Target to increase. Refer to note A4.1 on page 203 for 
reconciliation.
+0.7%
since 2019/20 baseline
Underlying profit before tax (£m) 
Definition: Profit before tax adjusted for certain items in note 5 which, 
by virtue of their size and/or nature, do not reflect the Group’s underlying 
performance. Target to maintain growth. Refer to note A1.2 on page 200 
for reconciliation.
£701m
in 2023/24
2023/24
2023/24
8.3
701
2022/23
2022/23
7.6
690
2021/22
2021/22
8.4
730
2020/21
2020/21
5.6
357
Retail free cash flow (£m)
Definition: Net cash generated from retail operations, after cash capital 
expenditure and after investments in joint ventures and associates. Target 
at least £500 million per annum on average to 2024. Refer to note A2.1 on 
page 200 for reconciliation.
£639m
in 2023/24
Retail operating cost to sales (bps)
Definition: Retail operating costs as a percentage of retail sales 
including VAT. Target to reduce by at least 200bps by 2024 year-end. 
 
165bps
improvement since 2019/20
Financial
2023/24
(165)
2022/23
(97)
2021/22
(83)
2020/21
(57)
2023/24
2023/24
639
1,787
2022/23
2022/23
645
1,932
2021/22
2021/22
503
1,898
2020/21
2020/21
784
1,851
Retail free cash flow
Bps improvement v 2019/20
3-year total
ROCE (%)
Underlying PBT (£m)

46  J Sainsbury plc Annual Report and Financial Statements 2024
Financial review
Group sales were up 3.4 per cent year-on-year, with grocery volume growth 
strengthening as inflation reduced over the course of the year. Grocery 
sales increased 9.4 per cent as we continue to prioritise value for customers, 
inflating behind key competitors and winning volume market share. General 
merchandise sales declined slightly as the weather impacted seasonal 
sales performance, alongside tough market conditions. General merchandise 
sales were additionally impacted by the closure of Argos in the Republic of 
Ireland. Fuel sales decreased by 14.3 per cent, reflecting a lower average 
pump price year-on-year with volume remaining resilient.
Statutory profit before tax declined £50 million year-on-year to £277 million 
(2022/23: £327 million). Our underlying profit before tax of £701 million 
(2022/23: £690 million), increased year-on-year driven by strong grocery 
profit growth, partially offset by lower general merchandise and Financial 
Services underlying profit. At the statutory level, underlying profit growth 
was offset by non-underlying costs of £424 million (2022/23: £363 million) 
which increased year-on-year driven by increased property, finance and 
acquisition adjustments and costs associated with the disposal of the 
mortgage portfolio in the Bank.
Retail profits increased 4.3 per cent, driven by incremental profit from higher 
grocery volumes and cost savings from our Save to Invest programme. 
Higher grocery volumes were the result of continued switching gains from 
competitors, reflecting Sainsbury’s improved value proposition, product 
innovation and improved availability. The Save to Invest program helped to 
mitigate significant operating cost inflation, including the cost of continued 
investment in our colleagues. Higher grocery profits were partially offset 
by lower general merchandise margins, reflecting higher promotional sales 
participation in tough trading conditions and the impact on margins of 
lower sales in higher margin seasonal categories and higher sales of lower 
margin Consumer Electronics products. 
Financial Services underlying operating profit decreased 37 per cent, 
reflecting the impact of higher funding costs from increased interest 
rates not being fully passed on to customers. 
Non-underlying items included costs of £273 million associated with the 
decision that Financial Services products to be offered in the future will be 
provided by dedicated financial services providers through a distributed 
model. We continued with the restructuring programme announced in 
November 2020, incurring £95 million of costs, which was in line with our 
expectations. Group statutory profit after tax was £137 million (2022/23: 
£207 million).
Underlying basic earnings per share decreased to 22.1 pence (2022/2023: 
23.0 pence) as the impact of the increase in corporation tax rate more than 
offset the increase in underlying pre-tax earnings. Basic earnings per share 
decreased to 5.9 pence (2022/23: 9.0 pence).
Non-lease net debt increased by £344 million, moving to a net debt position 
at year-end and total net debt reduced by £790 million. These movements 
were impacted by the purchase of a commercial property investment pool, 
known as Highbury and Dragon, in which the Group already held a beneficial 
interest. The impact of this property transaction increased non-lease debt 
as a result of the £670 million net consideration with an offsetting reduction 
in lease net debt of £1,042 million.
Working capital reduced by £262 million with an increase in payables 
whilst maintaining a flat inventory and receivables position and supported 
by growing sales. Retail free cash flow generation remained strong at 
£639 million (2022/23: £645 million) despite higher capital investment to 
ensure continued enhancement of both of our physical and digital assets 
and the benefit last year of a £50 million dividend payment from 
Sainsbury’s Bank.
In February it was announced that we would move to a progressive dividend 
policy from the start of the next financial year. We also announced a share 
buyback programme, starting with £200 million for the financial year to 
March 2025. As the new dividend policy is due to start in 2024/25, for 2023/24 
our previous policy of around 60 per cent of underlying earnings after tax 
is maintained and our dividend remains flat year-on-year at 13.1 pence 
per share. Against lower earnings per share year-on-year, the payout ratio 
increased to 59 per cent from 57 per cent in the prior year.
We delivered a return on capital employed of 8.3 per cent, up from 7.6 per cent 
in 2022/23, reflecting improved underlying profits and a reduction in average 
capital employed, driven by a decline in the average value of derivatives, 
right of use assets and property, plant and equipment, and the impacts of 
the Highbury and Dragon transaction. The business had £1 billion of 
undrawn facilities at the end of the year.
As at 2 March 2024 the net defined benefit pension surplus under IAS 19 
for the Group was £690 million (excluding deferred tax). The £299 million 
reduction from 6 March 2023 was driven by a reduction in the value of 
matching assets used to hedge against movements in gilt yields and 
inflation, and higher than previously expected pension increase 
assumptions. For 2024/25 we expect total pension scheme cash 
contributions of around £45 million.
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  47
Financial Review of the year results for the 52 weeks to 2 March 2024
A number of Alternative Performance Measures (‘APMs’) have been adopted by the Directors to provide additional information on the underlying 
performance of the Group. These measures are intended to supplement, rather than replace the measures provided under IFRS. Underlying performance 
measures are reconciled to their IFRS equivalents on the face of the income statement with non-underlying items set out in more detail in note 5 to the 
financial statements. Other APMs are defined and reconciled to the nearest IFRS measures in notes A1 to A4 on pages 199 to 203.
Summary income statement
52 weeks to 
2 March 2024
£m
52 weeks to 
4 March 2023
£m
Change
%
Group sales (including VAT)
36,337
35,157
3.4
Retail sales (including VAT)
35,721
34,626
3.2
Retail sales (excluding fuel, including VAT)
30,615
28,664
6.8
Group sales (excluding VAT)
32,700
31,491
3.8
Retail sales (excluding VAT)
32,084
30,960
3.6
Underlying operating profit
Retail
966
926
4.3
Financial Services
29
46
(37.0)
Total underlying operating profit
995
972
2.4
Underlying net finance costs
(294)
(282)
4.3
Underlying profit before tax
701
690
1.6
Items excluded from underlying results
(424)
(363)
16.8
Profit before tax
277
327
(15.3)
Income tax expense
(140)
(120)
16.7
Profit for the financial period
137
207
(33.8)
Underlying basic earnings per share 
22.1p
23.0p
(3.9)
Basic earnings per share
5.9p
9.0p
(34.4)
Interim Dividend per share
3.9p
3.9p
—
Final Dividend per share
9.2p 
9.2p
—
Total Dividend per share
13.1p
13.1p
—
In the 52 weeks to 2 March 2024, the Group generated profit before tax of £277 million (2022/23: £327 million) and an underlying profit before tax of £701 million 
(2022/23: £690 million).
This strong underlying profit performance was driven by the performance of our grocery business, which delivered both grocery volume growth and 
consistent market share gains throughout the year. This reflected the investment we have made in our grocery business in recent years to strengthen the 
customer proposition, in particular through the improvement of our value position. The grocery volume performance was further supported this year by the 
successful launch of Nectar Prices. Our ongoing cost savings programme helped us reduce the impact of rising operating cost inflation in order to deliver for 
customers, colleagues and shareholders. The combination of volume growth and cost savings delivered strong grocery profit growth, partially offset by the 
impact of poor weather on general merchandise and clothing sales and lower Financial Services profits. Strong cash generation, with retail free cash flow of 
£639 million, strengthened our balance sheet and supported dividend payments. We continue to make balanced investment choices, supporting our 
customers and colleagues whilst also delivering for shareholders.
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Financial Statements

48  J Sainsbury plc Annual Report and Financial Statements 2024
Financial review continued
Group sales
Group sales (including VAT) increased by 3.4 per cent year-on-year as a 6.8 per cent increase in Retail sales (including VAT, excluding fuel) more than offset a 
14.3 per cent decrease in Fuel sales (including VAT). 
Total sales performance by category
52 weeks to 
2 March 2024
£bn
52 weeks to 
4 March 2023
£bn
Change
%
Grocery
23.7
21.7
9.4
General merchandise 
6.0
6.0
(0.5)
Clothing
0.9
1.0
(6.4)
Retail (exc. Fuel)
30.6
28.7
6.8
Fuel sales
5.1
6.0
(14.3)
Retail (inc. Fuel)
35.7
34.6
3.2
Retail like-for-like sales performance
52 weeks to 
2 March 2024
52 weeks to 
4 March 2023
Like-for-like sales (exc. Fuel)
7.5% 
2.6%
Like-for-like sales (inc. Fuel)
3.8% 
5.7%
Grocery sales increased 9.4 per cent, reflecting strengthening volume growth as inflation reduced, particularly in the second half of the year. We continued to 
prioritise value for customers, inflating behind key competitors. This included the positive launch of Nectar Prices, offering lower prices for Nectar customers 
alongside extra personalised prices through ‘Your Nectar Prices’. As a result, we have seen volume increases across all major categories and our own brand 
participation increased 93 basis points as customers opted to trade in to better value private label products from branded items to help manage the cost of 
living whilst also treating themselves through our Taste the Difference range, particularly at key events.
General merchandise sales decreased by 0.5 per cent. Seasonal and Kids and Home and Furniture sales both declined due to a cooler, wetter summer and 
warmer winter impacting seasonal sales, alongside tough market conditions. This was partially offset by Electronics and Tech sales increasing year-on-year, 
with Gaming being the primary driver. Sales were also affected by the closure of Argos Republic of Ireland on 24 June. Stripping out the effect of the Republic of 
Ireland closure, general merchandise sales increased by 1.2 per cent. Clothing sales decreased by 6.4 per cent, with lower volumes partially driven by 
unseasonable weather. 
Fuel sales decreased by 14.3 per cent, reflecting a lower average pump price year-on-year.
Total sales (including VAT) performance by channel
52 weeks to 
2 March 2024
%
52 weeks to 
4 March 2023
%
Total sales fulfilled by supermarket stores
10.3
1.9
Supermarkets (inc. Argos stores in Sainsbury's)
11.0
4.8
Groceries online 
5.5
(13.5)
Convenience 
10.3
9.9
Sales fulfilled from our supermarkets grew by 10.3 per cent, driven by both grocery inflation and, particularly in the second half, volume growth. Groceries 
online sales increased by 5.5 per cent, driven by improvements in availability and service. Convenience sales increased by 10.3 per cent, with growth strongest 
in ‘Food on the Move’ city centre stores and more urban locations.
Space
During 2023/24, Sainsbury’s opened three new supermarkets and closed one, and opened 23 new convenience stores, closing three.
During the year, we opened 22 new Argos stores in Sainsbury’s and closed 73 standalone Argos stores. The number of Argos collection points in Sainsbury’s 
stores increased from 420 to 456. As at 2 March 2024, Argos had 659 stores, including 446 stores in Sainsbury’s, and a total of 1,115 points of presence.
Store numbers and retailing space
As at
4 March 2023 a)
New stores
Disposals/
closures
As at
2 March 2024
Supermarkets
595
3
(1)
597
Supermarkets area '000 sq. ft.
20,691 
120
(10)
20,801
Convenience
814
23
(3)
834
Convenience area '000 sq. ft.
1,961
61
(6)
2,016
Sainsbury's total store numbers
1,409
26
(4)
1,431
Argos stores
285
1
(73)
213
Argos stores in Sainsbury's
424
22
—
446
Argos total store numbers
709
23
(73)
659
Argos collection points
420
42
(6)
456
Habitat 
3
—
(3)
—
a) 	 Space (sq. ft.) adjusted at 4 March 2023 to include the net change of all store re-measures throughout the year including those made post-investment.
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J Sainsbury plc Annual Report and Financial Statements 2024  49
In total for 2024/25, we expect to open three supermarkets and around 25 new convenience stores, with four supermarkets and three to five convenience 
stores to close. In addition, we expect to open around ten Argos stores inside Sainsbury’s and close around 15 – 20 Argos stand-alone stores.
We expect the stand-alone Argos store estate will reduce to around 190 stores by March 2025 and we expect to have 450–460 Argos stores inside Sainsbury’s 
supermarkets as well as 480–500 collection points.
Retail underlying operating profit
Retail underlying operating profit
Note a)
52 weeks to 
2 March 2024
52 weeks to 
4 March 2023
Change
Retail underlying operating profit (£m)
A1.2 a)
966
926
4.3%
Retail underlying operating margin (%)
A1.2 a)
3.01
2.99
2bps
Retail underlying EBITDA (£m)
A1.2 d)
2,078 
2,060
0.9%
Retail underlying EBITDA margin (%) 
A1.2 d)
 6.48
6.65
(17)bps
a)	 Note references for reconciliations refer to the Alternative Performance Measures on pages 199 to 203. 
Retail underlying operating profit increased by 4.3 per cent to £966 million (2022/23: £926 million) and retail underlying operating margin increased by two 
basis points year-on-year to 3.01 per cent (2022/23: 2.99 per cent). Strong grocery profit growth was driven by higher volumes and cost savings offsetting 
higher operating costs and value investment. This was partially offset by lower general merchandise margins, which reflected the mix impacts of lower 
seasonal sales and higher consumer electronics sales.
In 2024/25, Sainsbury’s expects retail underlying operating profit of between £1,010 million and £1,060 million, growth of between five per cent and ten per cent.
Retail underlying EBITDA increased to £2,078 million (2022/23: £2,060 million). However, retail underlying EBITDA margin declined 17 basis points to 6.48 per cent 
(2022/23: 6.65 per cent). In 2024/25, Sainsbury’s expects a retail underlying depreciation and amortisation charge of around £1.15 billion (2023/24 £1.11 billion), 
including around £0.4 billion right-of-use asset depreciation. 
Financial Services
Financial Services results 
12 months to 29 February 2024
2024
2023
Change
Underlying revenue (£m)
637
531
20.2%
Interest and fees payable (£m)
(211)
(84)
152.4%
Total income (£m)
426
447
(4.7)%
Underlying operating profit (£m)
29
46
(37.0)%
Net interest margin (%)
a)
4.7
5.1
(40)bps
Cost:income ratio (%)
70
66
400bps
Bad debt as a percentage of 
lending (%)
b)
2.1
2.1
0bps
Tier 1 capital ratio (%)
17.1
15.4e)
170bps
Total capital ratio (%)
c)
19.4
17.8e)
160bps
Customer deposits (£bn)
(4.2)
(4.7)
(10.6)%
Total customer lending (£bn)
d)
4.5
5.3
(15.1)%
of which unsecured lending (£bn)
4.5
4.7
(4.3)%
of which secured lending (£bn)
—
0.6
(100.0)%
a)	 Net interest income divided by average interest-bearing assets. 
b)	 Bad debt expense divided by average net lending.
c)	
Total capital divided by risk-weighted assets. 
d)	 Amounts due from customers at the balance sheet date in respect of loans, mortgages, 
credit cards and store cards net of provisions. 
e) 	 The prior year (February 2023) unaudited CET1 (15.5 per cent) and total capital ratio 
(17.9 per cent) have been updated to reflect a revised credit value adjustment (CVA) 
calculation as outlined in the Pillar 3 Disclosures published in July 2023.
Financial Services underlying operating profit of £29 million (2022/23: 
£46 million) reduced by £17 million, primarily reflecting the impact of 
higher funding costs from increased interest rates not being fully passed 
on to customers. 
Total income of £426 million reduced by 4.7 per cent and net interest margin 
reduced by 40 basis points. Strong underlying revenue growth of 20 per cent 
was driven by selective unsecured customer lending growth (with average 
balance up five per cent) and customer rate increases, alongside strong 
growth in Travel Money and Argos Care. Interest and fees payable grew 
152 per cent, driven by the increase in the Bank of England base rate since 
the financial year ended in 2022. 
The Financial Services cost:income ratio increased to 70 per cent (2022/23: 
66 per cent), reflecting the pressure on net income from higher funding costs 
and the impact of inflation on operating costs.
Bad debt as a percentage of lending stayed flat at 2.1 per cent (2022/23: 
2.1 per cent) with slightly higher arrears in Loans offset by lower arrears 
in Store Cards.
Financial Services remains well capitalised, with a total capital ratio of 
19.4 per cent (2022/23: 17.8 per cent), an increase of 160 basis points since 
prior full-year.
The scope of our Financial Services business is likely to change during the year. 
Profits from our core banking products will continue to be impacted by higher 
funding costs and will additionally be impacted by preparations for the phased 
withdrawal from these products. Therefore we expect these products to be 
loss-making, offsetting profits from Argos Financial Services and commission-
based products such as insurance and travel money to make an underlying 
net Financial Services contribution of between break even and £15 million.
Underlying net finance costs
Underlying net finance costs
52 weeks to 
2 March 2024
£m
52 weeks to 
4 March 2023
£m
Change
%
Non-lease interest costs
(71)
(42)
69.0
Non-lease interest income
28 
16 
75.0
Net finance costs on lease liabilities
(251)
(256)
(2.0)
Total underlying net finance costs
(294)
(282)
4.3 
Underlying net finance costs increased by 4.3 per cent to £294 million 
(2022/23: £282 million). These costs include £43 million of net non-lease 
interest (2022/23: £26 million). The increase of net non-lease interest 
was driven by increased interest costs of £28 million in respect of the 
£575 million term loan which was fully drawn from July 2023 to partially 
fund the Highbury and Dragon property transaction. This was partially 
offset by increased interest income of £12 million due to the benefit of 
higher interest rates on cash deposits. Net finance costs on lease liabilities 
reduced to £251 million (2022/23: £256 million), including the impact of the 
reduction in lease liabilities resulting from the Higbury and Dragon transaction. 
Sainsbury’s expects underlying net finance costs in 2024/25 of between 
£310 million and £320 million, including £260 million lease interest costs.
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Financial Statements

50  J Sainsbury plc Annual Report and Financial Statements 2024
Financial review continued
Items excluded from underlying results
In order to provide shareholders with insight into the underlying 
performance of the business, items recognised in reported profit before tax 
which, by virtue of their size and/or nature, do not reflect the Group’s 
underlying performance are excluded from the Group’s underlying results 
and shown in the table below.
Items excluded from underlying results
52 weeks to 
2 March 2024
£m
52 weeks to 
4 March 2023
£m
Sainsbury’s structural integration 
(95)
(106)
Impairment charges
—
(281)
Income recognised in relation to legal disputes
—
30
IAS 19 pension income
44
58
Property, finance and acquisition adjustments 
(86)
(64)
Items excluded from underlying results 
before Financial Services
(137)
(363)
Financial Services phased withdrawal
(273)
—
Disposal of mortgage book
(14)
—
Total items excluded from underlying results 
(424)
(363)
Sainsbury’s structural integration costs of £95 million (2022/23: £106 million) 
were recognised in relation to the programme relating to the structural 
integration of Sainsbury’s and Argos announced in November 2020. Cash 
costs in the year were £67 million (2022/23: £50 million). The majority of the 
programme has now completed, with costs incurred to date of £841 million, 
and cash costs of £270 million. 
In January 2024, the Group announced that Financial Services products to 
be offered in the future will be provided by dedicated financial services 
providers through a distributed model. Costs of £273 million associated with 
this decision comprise mainly of impairment of non-financial assets, 
additional allowances arising from a reassessment of the effective interest 
rate applied to the amortised cost of financial assets, onerous contracts 
relating to long-dated computer software contracts and impairment of the 
remaining goodwill held in the Bank. Cash costs in the year were £5 million 
(2022/23: £nil). Further costs associated with this restructuring will be 
incurred in future years once more detailed plans to execute these changes 
are formulated and communicated.
Non-cash impairments of £281 million were recognised in 2022/23, driven by 
a material increase in the underlying discount rate, following sustained 
increases in gilt interest rates. 
During the year, the Bank disposed of its mortgage portfolio for proceeds of 
£446 million, which resulted in a non-underlying charge of £14 million. This 
loss on disposal includes goodwill, transaction costs and the recognition of 
onerous contract provisions.
IAS 19 pension income decreased to £44 million (2022/23: £58 million). The 
lower pension income in the current year is primarily driven by a settlement 
credit of £8 million recognised in the prior year relating to a gain on 
payments made to members exiting the scheme relative to the liabilities 
extinguished, as well as the impact of the lower opening surplus at the 
beginning of the financial year, compared to the prior year.
2022/23 included legal disputes income of £30 million from credit 
card companies in respect of overcharges for credit card processing 
(interchange) fees.
Other movements of £86 million expense (2022/23: £64 million expense) 
include £15 million related to property transactions, £15 million of acquisition 
adjustments and £56 million of non-underlying finance and fair value adjustments. 
Non-underlying finance and fair value adjustments were impacted by a loss 
on energy derivatives of £46 million (2022/23: £29 million loss) caused by 
decreases in electricity forward prices in the period. The energy derivatives 
relate to long-term, fixed price power purchase arrangements (PPAs) with 
independent producers. These are accounted for as derivative financial 
instruments, but are not designated in hedging relationships. Therefore, 
gains and losses are recognised in the income statement.
Taxation
The income tax expense was £140 million (2022/23: £120 million). 
The underlying tax rate was 26.4 per cent (2022/23: 22.8 per cent) and the 
effective tax rate was 50.5 per cent (2022/23: 36.7 per cent). The 2023/24 
charges were structurally higher due to an increase in the headline rate 
of corporation tax to 25 per cent (previously 19 per cent), effective from 
1 April 2023, partially offset by beneficial prior period adjustments 
(mainly due to super deduction claims).
The effective tax rate, of 50.5 per cent for the year, is significantly higher 
than the prior year and headline tax rates due to the impact of the release of 
a deferred tax asset on capital losses (giving rise to a tax charge of £40 million) 
previously recognised against fair value gains within the Highbury and 
Dragon structure (against which a deferred tax liability was recognised). 
During the period, an £80 million credit was recognised in reserves in 
respect of the derecognition of the deferred tax liability against the property 
pool; this credit had no impact on the effective tax rate. In addition, the 
effective rate is adversely affected by the write off of goodwill as part of 
the Financial Services restructuring, for which no tax deduction is available.
We expect an underlying tax rate in 2024/25 of around 30 per cent. This is 
higher than prior years, because of the headline rate continuing at 25 per cent, 
but without any anticipated beneficial prior period adjustments. 
Earnings per share 
Underlying basic earnings per share decreased to 22.1 pence (2022/23: 
23.0 pence) as the increase in corporation tax more than offset the increase 
in underlying pre-tax earnings. Basic earnings per share decreased to 
5.9 pence (2022/23: 9.0 pence). Underlying diluted earnings per share 
decreased to 21.6 pence (2022/23: 22.7 pence) and diluted earnings per 
share decreased to 5.7 pence (2022/23: 8.8 pence).
Dividends
The Board has recommended a final dividend of 9.2 pence per share 
(2022/23: 9.2 pence). This will be paid on 12 July 2024 to shareholders on the 
Register of Members at the close of business on 7 June 2024. This is in line 
with the Group’s policy to pay a dividend of around 60 per cent of underlying 
earnings, allowing us to maintain a full-year dividend of 13.1 pence (2022/23: 
13.1 pence).
Sainsbury’s has a Dividend Reinvestment Plan (DRIP), which allows 
shareholders to reinvest their cash dividends in our shares. The last date 
that shareholders can elect for the DRIP is 21 June 2024.
From financial year 2024/25, as per our capital allocation policy, we are 
committed to a progressive dividend policy. We have also announced that 
we will buyback £200 million of shares in 2024/25 and that we will review the 
level of cash return to shareholders through buyback on an annual basis. 
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J Sainsbury plc Annual Report and Financial Statements 2024  51
Net debt and Retail cash flows
Summary Retail cash flow statement
Note a)
52 weeks to 
2 March 2024
£m
52 weeks to 
4 March 2023
£m
Retail underlying operating profit
7
966
926
Adjustments for:
Retail underlying depreciation and amortisation
1,112 
1,134 
Share-based payments and other
78 
49 
Adjusted retail underlying operating cash flow before changes in working capital
2,156 
2,109 
Decrease in underlying working capital 
b)
262 
159 
Retail non-underlying operating cash flows (excluding pensions)
(72)
(23)
Pension cash contributions
(44)
(44)
Retail cash generated from operations
2,302
2,201
Interest paid
(323)
(307)
Corporation tax paid
(58)
(99)
Retail net cash generated from operating activities
1,921 
1,795 
Cash capital expenditure
(814)
(717)
Repayments of lease liabilities
(505)
(512)
Initial direct costs on right-of-use assets
(6)
(16)
Proceeds from disposal of property, plant and equipment
16 
29 
Interest income 
b)
27
15
Dividends and distributions received
— 
51 
Retail free cash flow
639 
645 
Dividends paid on ordinary shares
(306)
(319)
Net drawdown/(repayment) of borrowings
534 
(40)
Net consideration paid for Highbury and Dragon property transaction
(670)
— 
Share related transactions
(3) 
(32)
Net increase in cash and cash equivalents
194 
254 
(Increase)/decrease in debt
(29)
552 
Highbury and Dragon non-cash lease movements
15
1,042
— 
Other non-cash and net interest movements 
c)
(417) 
(391)
Movement in net debt
32
790 
415 
Opening net debt
32
(6,344)
(6,759)
Closing net debt
32
(5,554)
(6,344)
of which 
Lease liabilities
32
(5,354)
(6,488)
(Net debt)/net funds excluding lease liabilities
(200) 
144 
a)	 Note references relate to the Alternative Performance Measures in Notes A2.1 and A2.2  on pages 199 to 203. 
b)	 The Group cash flow statement now classifies interest received within cash flows from investing activities to provide greater clarity over the Group’s cash flows whereby such cash flows 
had previously been included within cash generated from operations. Refer to the consolidated cash flow statement on page 136.
c)	
Other non-cash movements include new leases and lease modifications and fair value movements on derivatives used for hedging long-term borrowings.
Adjusted retail underlying operating cash flow before changes in working capital increased by £47 million year-on-year to £2,156 million (2022/23: £2,109 million) 
supported by an increase in retail underlying operating profit. Working capital reduced by £262 million, with payables increasing whilst maintaining a flat 
inventories and receivables position overall (2022/23: £159 million working capital reduction). Retail non-underlying operating cash flows of £72 million relate 
to restructuring costs, including cash flows associated with the closure of Argos operations in Republic of Ireland. Pension cash contributions of £44 million 
remained consistent with the prior year as no funding level events occurred. 
We paid corporation tax of £58 million in the year (2022/23: £99 million), £41 million lower than the prior year benefitting from overpayments on account due 
to closing prior years, as well as current year benefits relating to a partial relief taken on full expensing allowances on our fixed assets investments. Proceeds 
of £16 million (2022/23: £29 million) resulted from disposals of non-trading sites. No dividends and distributions were received in the year while the prior year 
included a £50 million dividend received from Sainsbury’s Bank.
Cash capital expenditure was £814 million (2022/23: £717 million). The year-on-year increase was primarily driven by investment in electric vehicles (EV) 
charging infrastructure (£63 million) and in-store investment. Sainsbury’s expects core retail cash capital expenditure (excluding Financial Services) in 
2024/25 to be £800 million to £850 million, with an additional £70 million of strategic investment in our EV charging business.
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52  J Sainsbury plc Annual Report and Financial Statements 2024
Net debt and Retail cash flows continued
Retail free cash flow declined by £6 million year-on-year to £639 million 
(2022/23: £645 million). In 2024/25 we expect to generate retail free cash flow 
of at least £500 million, in line with our commitment of generating at least 
£1.6 billion of retail free cash flow over the next three years.
Dividends of £306 million were paid in the year, covered 2.1 times by free 
cash flow (2022/23: 2.0 times). Net drawdown of borrowings includes 
£575 million drawdown of the unsecured term loan facility used to part 
fund the Highbury and Dragon property transaction. 
On 17 March 2023, the Group completed the purchase of a commercial property 
investment pool, known as Highbury and Dragon, in which it already held a 
beneficial interest. The investment pool contained 26 supermarkets, all of 
which were formerly leased to Sainsbury’s. Of the 26 stores acquired, 21 have 
been retained, four have been sold and leased back, and one was held for 
sale at the balance sheet date. The total consideration paid for the asset 
acquisition was £731 million, which included fully funding the bond 
redemptions attached to the property pool of £300 million. Proceeds of 
£61 million were received for the four supermarkets sold and leased back. 
As at 2 March 2024, net debt was £5,554 million (4 March 2023: £6,344 million), 
a decrease of £790 million. Excluding the impact of lease liabilities, 
non-lease net debt increased by £344 million in the year, moving to a net 
debt position of £200 million (4 March 2023: net funds of £144 million), 
impacted by the £670 million net consideration relating to the Highbury and 
Dragon property transaction and partially offset by positive cash generation. 
Net debt includes lease liabilities of £5,354 million (4 March 2023: 
£6,488 million). Lease liabilities have decreased by £1,134 million, largely 
impacted by the Highbury and Dragon property transaction, which resulted 
in a reduction of lease debt of £1,042 million.
For the financial year ending 1 March 2025, the definition of retail free cash 
flow will change to now exclude capital injections to, dividends from, and 
any other exceptional cash movements with, Sainsbury’s Bank.
Financial ratios
Key financial ratiosa)
As at
2 March 2024
As at 
4 March 2023
Return on capital employed
8.3%
7.6%
Net debt to EBITDA
2.6x 
3.0x 
Fixed charge cover
2.7x
2.7x
a)	 Reconciliations are set out notes A4.1, A3.2 and A4.2 of the Alternative Performance 
Measures on pages 199 to 203
Return on capital employed (ROCE) improved primarily due to lower capital 
employed, driven by a decline in the average value of derivatives, right-of-
use assets and property, plant and equipment, and the impacts of the 
Highbury and Dragon transaction. 
Sainsbury’s continues to target leverage of 3.0x–2.4x to deliver a solid 
investment grade balance sheet. An improvement in net debt to EBITDA 
to 2.6x from 3.0x at 4 March 2023 reflects the improvement in net debt 
benefitting from positive retail free cash flow and the Highbury and Dragon 
property transaction. Fixed charge cover is stable.
Defined benefit pensions
At 2 March 2024, the net defined benefit surplus under IAS 19 for the Group 
was £690 million (excluding deferred tax). This represented a reduction of 
£299 million from the prior year-end date of 4 March 2023, primarily driven 
by a reduction in the value of matching assets used to hedge against 
movements in gilt yields and inflation, and experience losses due to higher 
deferred pension increase assumptions, partially offset by updated 
mortality assumptions reducing scheme liabilities. 
The net surplus reduced as the Trustees’ funding basis is linked to government 
bond yields, which increased over the year by circa 0.3 per cent, reducing the 
value of the liabilities on the schemes funding basis and consequently the 
value of those matching assets. However, the IAS 19 basis in the financial 
statements is linked to yields on AA rated corporate bonds. Despite 
government bond yields increasing, AA bonds have remained broadly 
unchanged over the year. As a result of this ‘valuation mis-match’, the value 
of the scheme’s liabilities on an IAS 19 basis was also broadly unchanged 
over the year, leading to the overall reduction in the net surplus.
There was no change during the year to the previously disclosed triennial 
valuation information. The next triennial valuation is due 30 September 2024. 
Refer to note 34 for further details.
For 2024/25, the total defined benefit pension scheme contributions are 
expected to be £45 million (2023/24: £44 million).
Retirement benefit 
obligations
Sainsbury’s
as at
2 March 2024
£m
Argos
as at
2 March 2024
£m
Group
as at
2 March 2024
£m
Group
as at
4 March 2023
£m
Present value of 
funded obligations
(5,172)
(816)
(5,988)
(5,921)
Fair value of plan 
assets
5,777
925
6,702
6,934 
Pension surplus
605
109
714
1,013 
Present value of 
unfunded 
obligations
(14)
(10)
(24)
(24)
Retirement benefit 
surplus
591
99
690
989 
Deferred income tax 
liability
(201)
(43)
(244)
(330)
Net retirement 
benefit surplus
390
56
446
659 
Bláthnaid Bergin
Chief Financial Officer
24 April 2024
Financial review continued
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J Sainsbury plc Annual Report and Financial Statements 2024  53
Principal Risks and Uncertainties
We are a resilient, values-led business and managing risk is part of how we 
operate and is also recognised as key to achieving our ambitions. As we 
embark on the Next Level Sainsbury’s strategy, the Board has undertaken 
a comprehensive review of the specific risks we face and how we mitigate 
them, investing time in ensuring that governance, oversight and risk 
frameworks remain key pillars of our delivery. We have also focused on 
ensuring that risk appetite is explicitly defined and embedded into key 
risk-based decision-making across the organisation. 
Over the following pages, we set out an overview of our risk management 
framework, the principal risks at year-end, ongoing mitigations and how 
these align to our strategy. The Operating Board monitors these principal 
risks on an ongoing basis, considering our risk appetite and amending 
mitigations where appropriate.
Our approach to risk management
Our risk management framework is designed to: 
1.	 Identify key risks that could prevent us from achieving our strategic 
objectives. Both ‘bottom up’ divisional and ‘top down’ Operating 
Board-led assessment processes are used with results consolidated. 
To drive consistency, we use risk categories to identify and assess 
completeness within three core groups:
	–
Strategic risks that are borne out of the choices we make and our 
external environment, e.g. change delivery or trading environment
	–
Operational and compliance risks that are inherent in the way we 
operate, e.g. business resilience or data security 
	–
Financial risks that reflect our financial environment, performance 
and our deployment of resources, e.g. funding
2.	 Assess the likelihood of these risks occurring, in combination with the 
operational, reputational and financial impact they may introduce
	
We evaluate these risks over different timeframes and through different 
lenses. We have refreshed our risk metrics in the last year to ensure they 
remain relevant to the business and aligned to our corporate risk 
appetite. This ensures that the level of focus and mitigation strategies 
can be adapted for our current principal risks, that we can respond 
to events and uncertainties we face in the course of business and that 
we are keeping tabs on emerging risks
3.	 Manage the risks through implementing appropriate mitigation plans 
and controls, in line with our risk appetite and tolerances
	
The risk management framework in the business is devolved, ensuring 
that ownership for managing risks is embedded throughout the 
organisation. This drives accountability and is aligned to our valued 
behaviours. The risk management process, set out on the following page, 
shows how this is brought together to ensure integrity and visibility 
4.	 Monitor and report on our risks, key risk indicators, associated 
mitigation plans and changes to the internal/external environment to 
the relevant governance fora 
	
The following diagram provides an overview of the key risk management 
activities undertaken by leadership, that support this risk management 
process and allow the Board to fulfil its obligations under the 2018 
Corporate Governance Code. Please refer to pages 73 to 74 for the role 
and remit of these governance bodies
The Board has overall responsibility for risk management, the system of 
internal control and for reviewing the effectiveness of these at least 
annually. As such, they have approved our principal risks disclosure, as set 
out on pages 55 to 61. Certain responsibilities have been delegated to the 
Audit Committee, as outlined on page 94. 
Key elements of our risk management process
A ‘bottom up‘ risk assessment process is run with divisional leadership that 
identifies the key risks which may prevent the achievement of their 
strategic, operational, compliance or financial objectives. A risk map is 
maintained for each division, allowing assessment of the gross and net 
position of key risks and setting of targets and actions to achieve risk 
appetite where applicable. A consolidated view of relevant risks and the 
effectiveness of mitigating activities, are also discussed at relevant 
governance fora covering: safety; data governance; and environmental, 
social and governance matters. 
The Operating Board maintains the overall corporate risk map, which 
captures key risks to achieving our strategic objectives. The risk map is 
evaluated in line with our agreed risk appetite and tolerances for the 
supporting measures defined for each corporate risk. It is formally reviewed 
from a ‘top down’ perspective twice a year to consider the outputs of the 
‘bottom up’ process to assess themes, risk movements and new risks. The 
Operating Board discusses and agrees the level of risk within the business 
and whether the business is prepared to accept each key risk. Actions and a 
target risk position are agreed and tracked for any risks where 
management’s risk appetite differs to the current net position. 
Operating Board members confirm annually that the corporate risk map 
accurately reflects their view of key risk across the organisation. They also 
confirm that they are responsible for managing risks relevant to their 
division and that internal controls exist to provide reasonable, but not 
absolute, assurance that the risks in their areas of responsibility are 
appropriately identified, evaluated and managed; this is also reported to 
the Board. 
Board 
Review of risk process 
corporate risks and 
approval of risk disclosures
•	 Annual internal controls certification 
by management 
•	 Principal Risk and Uncertainty 
disclosures
•	 Corporate and emerging risk maps reviewed
•	 Risk deep dives received 
•	 Risk Policy and framework approved 
•	 Internal Audit reporting
•	 Corporate risk map updated and 
actions monitored 
•	 Risk deep dives received 
•	 Emerging risk map reviewed 
•	 Divisional risks relevant to forums’ area 
of scope reviewed 
•	 Governance forums’ risk maps reviewed 
•	 Divisional risk maps reviewed 
and challenged 
•	 Divisional emerging risk map reviewed 
•	 Monitor risk actions
Audit Committee
Corporate risk updates,  
deep dives and review  
risk framework
Operating Board 
Bi-annual corporate risk 
updates and deep dives 
Governance Forums 
Risk identification 
and monitoring 
Divisional  
leadership teams 
Bottom-up risk 
identification
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54  J Sainsbury plc Annual Report and Financial Statements 2024
Principal Risks and Uncertainties continued
Key elements of our risk management process 
continued
To ensure a joined-up view of risk from the ‘bottom up’ and ‘top down’ 
processes, the Risk and Internal Audit team are involved in each process. 
They provide the Audit Committee with a risk management update at each 
meeting to support them to fulfil their risk management objectives. This 
includes an overview of changes to the corporate risk map and risk 
disclosures agreed by the Operating Board for their review and comment, as 
well as any changes to our risk framework, policies or processes. 
Risk and Internal Audit also provide independent assurance to management 
and the Audit Committee over specific risk areas as part of their annual 
audit plan. Risk deep dives were also undertaken with the Operating Board 
and/or Audit Committee for a selection of principal risks, as set out over the 
following pages.
The Audit Committee Chair provides updates on Risk Management to 
the Board. 
Emerging risks and opportunities
Emerging risks and opportunities are formally reviewed in the year as part 
of the bottom-up divisional risk management process. This allows emerging 
risks to be considered and discussed by each division and then collated to 
perform a business-wide assessment of how emerging risks and 
opportunities may impact our business, considering their potential 
timeframe and degree of certainty. The risks are reported to the Operating 
Board and Audit Committee, considered in strategic planning and relevant 
actions are agreed. Emerging risk themes continue to relate to: 
•	 Increasing environmental, social and governance awareness, regulation 
and impacts on our operations, supply chains and customers
•	 Technology acceleration, which presents both risks and opportunity to 
our customers, our business operations, transformation programmes and 
the overall market sector
•	 Increasingly complex regulations and legal obligations, which can lead to 
the risk of fines or compensation for non-compliance and the potential 
for consequential litigation
Changes to principal risk disclosures
As described above, the principal and emerging risks are discussed and 
monitored throughout the year to identify and respond to changes in the 
risk landscape.
There has been one change to the principal risks we are disclosing compared 
to last year. We have combined the Trading Environment and Customer 
principal risks reported last year, reflecting the core focus on our customers 
and their expectations in how we manage our response to external factors, 
such as the cost of living crisis, supply chain issues or changing dynamics in 
the UK grocery market. 
There have been no movements in the net position of risks compared to last 
year. The increased Trading Environment net risk reported last year remains 
elevated. whilst Political and Regulatory net risks have fluctuated in year 
with government and regulator focus on dynamics within our market and 
changes in customer expectations, the risk position at time of reporting 
remains is level with last year. 
Our principal risks
The most significant principal risks identified by the Board and the 
associated mitigations are set out on the following pages. We have ordered 
them to first show those that have been included in the risk modelling 
undertaken as part of the preparation of the viability statement (see page 
62). This reflects that these risks have the potential to have the largest 
impact on the business. They are highlighted with this symbol: v
We have also clearly set out the link between each principal risk and the 
group’s key performance indicators (see pages 44 to 45) and continue to 
highlight the link with the strategy of the business, as follows:
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win 
The net risk movement from the prior year for each principal risk and 
uncertainty has been assessed and is presented as follows:
Mitigations in place, supporting the management of the risk to a net risk 
position, are also described for each principal risk.
No 
change
Increased net
risk exposure 
Reduced net
risk exposure 
New
risk 
NEW
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J Sainsbury plc Annual Report and Financial Statements 2024  55
Business continuity, operational resilience and major incident response 
Risk
Mitigations
A major incident or catastrophic event could affect the 
business or its individual brands’ ability to trade. Sainsbury’s 
exposure to operational resilience and major incident risks 
may be greater because of operational complexities and some 
ageing systems.
External factors, such as the continued disruption as a result of 
regional conflicts, fluctuating costs of fuel and materials and 
resilience of global supply chains, have impacted the business 
at points through the year. Such disruptions are actively 
managed either through day-to-day ways of working or, if 
needed, through the Incident Response Team (IRT). 
The IRT was convened at various times through the year, 
including to support our response to external protests and 
operational issues.
•	 The Operating Board sets the operational resilience strategy for the business, ensuring it 
is targeted on our core operations required to run the business, priorities to minimise the 
impact of any disruption and the operational and product suppliers we partner with
•	 The Operational Resilience Committee, which includes representatives from functions 
across Sainsbury’s, including the Bank, meets regularly to implement the operational 
resilience policy and strategy 
•	 Business-wide resilience exercises are undertaken to simulate real-life business 
continuity scenarios and test our ability to respond effectively. This includes testing our 
emergency call cascade. Actions in response to lessons learnt are agreed
•	 Key business processes are assessed for operational resilience impacts against a set of 
minimum standards. The Operational Resilience team performs a programme of 
assurance reviews over these assessments and contingency measures are regularly 
tested. Remote working solutions have reduced the risk of loss of a key site
Crisis management
•	 In the event of any unplanned or unforeseen events, the IRT is convened to manage the 
response and any associated risk to the business 
•	 The IRT Chair reports to the Operating Board, which provides strategic direction and 
decision-making across financial, operational and regulatory matters, considering 
all stakeholders
Direct oversight: Operating Board
Link to strategy: All strategic priorities
Link to key performance indicators: N/A
Movement: 
Business strategy and change v
Risk
Mitigations
Delivering the Next Level Sainsbury’s strategy requires 
significant, concurrent change activities to be delivered in 
the right sequence and at pace to drive business value. 
Key risks associated with this include our ability to 
effectively, govern, prioritise and land competing change 
activities across business process, operating model, tech 
capabilities, savings delivery and investment returns. To 
support this there is focus on embedding our purpose, goals 
and objectives, ensuring organisational alignment, as well as 
building capability and capacity to deliver.
•	 Our Next Level Sainsbury’s strategy, as set out in this Strategic Report, is focused on 
delivering our purpose through achieving four key outcomes: 
	–
First choice for food
	–
Loyalty everyone loves
	–
More Argos, more often 
	–
Save and invest to win
•	 The Strategy and Transformation functions drive aligned decision-making, supported by 
visibility and resource prioritisation across our major change portfolio. They support all key 
elements of strategic delivery and transformation across the business, to ensure we realise 
maximum value whilst balancing risk, dependencies and operational performance
•	 The Operating Board has had deep and thorough sessions to create the Next Level 
Sainsbury’s strategy, supported by a wide range of stakeholders – including shareholders, 
colleagues, customers and suppliers
•	 To ensure focus is maintained on delivering the strategic priorities of the business, major 
new projects are approved by the Operating Board once they have been through robust 
challenge on strategic alignment, expected returns and risks associated with their delivery. 
The Operating Board also monitor and reviews the in-year implementation of the plans to 
meet budget targets through weekly and periodic formal reviews, supported by our Finance 
and Transformation teams
Direct oversight: Business Performance Review (BPR), 
Operating Board
Link to strategy: All strategic priorities
Link to key performance indicators: All metrics
Movement: 
v
RISK DEEP DIVE
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56  J Sainsbury plc Annual Report and Financial Statements 2024
Principal Risks and Uncertainties continued
Our principal risks continued
Data security v
Risk
Mitigations
It is essential that the security of customer, colleague and 
company confidential data is maintained. A major breach of 
information security could have a significant operational, 
financial and reputational impact on the business. 
The risk landscape is increasingly challenging, with deliberate 
acts of cybercrime including ransomware attacks on the rise, 
targeting all markets and heightening the risk exposure to 
broader business disruption as well as to data breaches.
•	 A Data Governance Committee (DGC) is in place to oversee the management of colleague, 
customer and commercial data, information security and associated awareness and 
training. Deep dives on specific areas of our control environment are performed through 
the year and metrics to measure alignment to our risk appetite are reviewed in 
each meeting 
•	 The Data Governance and Information Security function works with our Technology 
division to continuously develop information security strategies and build the necessary 
capabilities to respond to the increasing number and sophistication of attacks, alongside 
focusing on improving how we handle data and protect systems across the organisation 
•	 There is active monitoring and analysis of changes to legal and regulatory compliance 
requirements in this area and current and emerging threats. This analysis is used to tune 
and apply our security framework accordingly. There are regular updates to the DGC, 
Operating Board and the Audit Committee on progress in delivering our information 
security strategies 
•	 A suite of 16 information security policies is in place, which focus on areas including 
effective use of AI, encryption, network security, access controls, data protection and 
information handling. There is continued investment in technology to support the 
implementation of policy and regulatory requirements
•	 There is continued focus on ensuring robust governance and control frameworks are 
implemented, including monitoring and improving maturity via continuous reviews of our 
controls against the NIST framework for information security and GDPR regulation and 
PCI standards in terms of data security
•	 A risk-based security testing approach across IT infrastructure and systems is in place 
to identify and address vulnerabilities and allow us to adapt and improve our defences
•	 Reviews of key third parties who hold sensitive customer or colleague data continue 
to take place and progress of the review and agreed actions is monitored by the DGC
•	 All colleagues are required to complete mandatory training on how to keep our 
information safe. This is supplemented by regular colleague awareness campaigns, 
focusing on specific aspects of data and information security, for example monthly 
e-mail phishing exercises, with results reported to the DGC and defined escalations for 
colleagues who fail
Direct oversight: Data Governance Committee
Link to strategy: All strategic priorities
Link to key performance indicators: N/A
Movement: 
RISK DEEP DIVE
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J Sainsbury plc Annual Report and Financial Statements 2024  57
Financial and treasury v
Risk
Mitigations
The main financial risk relates to availability of short and 
long-term funding to meet business needs and fluctuations in 
interest, commodity and foreign currency rates. 
There has been increased uncertainty during the last year with 
high inflation, significant FX fluctuations in the autumn and 
high increases in fuel prices. 
•	 Treasury policies, approved by the plc Board, are in place to address liquidity, refinancing, 
financial markets and counterparty credit risks. In addition, the business funding 
strategy is approved annually by the plc Board
•	 Hedging policies, approved by the Chief Finance Officer, are in place to address energy 
(electricity, gas and diesel) price risk. Adherence to the hedging policies is overseen by the 
Energy Price Risk Committee 
•	 The Treasury function is responsible for managing liquid resources, funding requirements, 
interest rate and currency exposures as set out in line with the Treasury policy and 
overseen by the Treasury Committee
•	 The Audit Committee reviews and approves the viability and going concern statements on 
an annual and half-yearly basis respectively 
•	 The Treasury function has clear operating procedures and adherence to these is regularly 
reviewed and audited
•	 A long-term funding plan is developed as part of the annual corporate plan process, which 
includes an assessment of short and long-term core funding requirements and contingent 
funding requirements. A revolving credit facility is in place, the maturity of which was 
extended by one year during the year
•	 A short-term funding plan is formalised as part of the annual budget process, which 
includes an assessment of the core and contingent funding requirements for the following 
year and the market conditions for each of the debt markets accessible to the business
•	 There is a long-term funding framework in place for the pension deficit and there is 
ongoing communication and engagement with the Pension Trustees
•	 Detailed cash flow forecasts are produced by the Finance and Treasury functions. Finance 
commercial reviews are also held each period, chaired by the Chief Finance Officer, with 
relevant actions and mitigations agreed
•	 Cash and debt position reported and discussed at every Audit Committee meeting
•	 Financial and Treasury risks in respect of Sainsbury’s Bank are detailed separately
Direct oversight: The Board of J Sainsbury plc
Link to strategy: Save and invest to win
Link to key performance indicators: Retail free cash flow
Movement: 
Safety and security v
Risk
Mitigations
Prevention of injury and loss of life for both customers and 
colleagues is of utmost importance and is paramount to 
maintaining the confidence our customers and colleagues 
have in our business.
The business continues to change and evolve to meet 
customer and colleague needs, impacting the safety and 
security risk profile. 
•	 The Group Safety Committee oversees safety and security management across the Group. 
It met regularly during the year, receiving detailed reports on a wide range of topics, 
including across Facilities Management, Food Technical, Retail, Audit and Product. Key 
areas of focus this year included improving data quality, understanding root causes and 
risk removal
•	 The Operating Board and plc Board receive regular reporting on safety, including an 
annual deep dive facilitated by the Director of Safety and Insurance on safety 
and security
•	 Our approach to both safety and security continue to evolve in line with changes in the 
risk profile in the business 
•	 A safety vision is defined and a set of reactive and proactive metrics that align to each 
core area of the business is in place to support effective monitoring and planning
•	 Clear policies and procedures are in place detailing the controls required to manage 
health and safety across the business, aligned to Assured Primary Authority advice, to 
comply with all applicable laws and regulations. Primary Authority oversight, internal 
training and monitoring support process compliance, with oversight provided by field 
teams in both Safety and Internal Audit 
•	 Work has continued to further enhance capabilities, data and measures of success. This 
will drive prioritisation, simplification and stakeholder alignment across the business in 
order to maintain our focus on reducing harm and its associated costs by removing 
unnecessary complexity. As a result of the continued focus, overall incidents continue 
to decrease 
•	 To support a safer environment for colleagues and customers to work and shop, 
mitigations are risk based and data led, whilst incorporating external benchmarking and 
collaboration. Engagement remains a priority across Policing and Government
•	 Mitigating measures include security officers, store detectives, Security Operations Centre 
and multiple technology investments, including body worn cameras and CCTV. Retail 
colleagues received updated Keeping Colleagues Safe training and incident reporting 
remains a priority to ensure data remains up to date
Direct oversight: Group Safety Committee
Link to strategy: First choice for food, More Argos, more often
Link to key performance indicators: N/A
Movement: 
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58  J Sainsbury plc Annual Report and Financial Statements 2024
Principal Risks and Uncertainties continued
Our principal risks continued
Political and regulatory environment v
Risk
Mitigations
Our business operations are impacted by a wide range of legal 
and regulatory requirements. There remains an increasing 
trend of industry focus, regulation (often with uncertainty 
around timelines, adoption in devolved nations and impact) as 
well as enforcement action impacting all areas of our business.
This adds significant cost as we respond to requirements, 
drives complexity into our business processes and increases 
the risk of non-compliance, which could lead to fines, criminal 
penalties for Sainsbury’s or our colleagues or litigation, e.g. 
class actions such as the ongoing equal value claim.
•	 Assessment of regulatory and compliance requirements continues to directly inform our 
strategic planning and investment choices, which are embedded within our Next Level 
Sainsbury’s strategy
•	 Key regulatory risks impacting our business operations include Competition Law, Pricing 
and Promotional requirements, e.g. High Fat, Salt and Sugar, (HFSS), Grocery Suppliers 
Code of Practice (GSCOP) and Bribery Act 
•	 Accountability is defined for each key risk with key elements of the compliance 
framework evaluated through a biennial regulatory risk assessment, targeted audits and 
monitoring. Policies, mandatory training and key processes, including global Rightline 
whistleblowing arrangements, are in place to support compliance with key 
regulatory areas 
•	 We liaise with external parties and our internal stakeholders to monitor changes to 
existing regulations that would impact the business, so that we can respond 
appropriately. During the year we have:
	–
continued to evaluate the impact of the post-Brexit regulatory and enforcement 
regime, the impact of corporate governance reform and changes to business rates, 
the apprenticeship levy and health regulations
	–
attended the Business and Trade select committee on food and fuel pricing and will 
attend an EFRA select committee on 30 April 2024
	–
proactively responded to regulatory consultations and worked with governments to 
understand the impact of deposit return schemes, extended producer responsibility 
for packaging (EPR), plastics and food waste regulations
	–
anticipated and responded to other emerging areas of regulatory focus on 
environment and climate change, and associated reporting requirements 
	–
continued to defend the equal value claims vigorously 
•	 As a responsible business, we proactively engage with Government, devolved 
administrations, regulators and industry bodies in the areas in which we operate, on 
public policy issues impacting our customers and colleagues. Our engagement is 
transparent and we allow our responses to government consultations to be made public
Direct oversight: Operating Board
Link to strategy: All strategic priorities
Link to key performance indicators: N/A
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Product safety and sourcing v
Risk
Mitigations
Failure to manage safety and sourcing risks for both food and 
non-food products leads to injury or loss of life, breach of 
regulation and/or reputational damage.
•	 The Group Safety Committee received regular reports on product safety from the Director 
of Technical – Food, Director of Commercial Operations and Development – GM and from 
the Director of Safety and Insurance on operational food safety risks. In addition, the 
Corporate Responsibility and Sustainability Committee discussed matters related to 
product sourcing risk, including supply chain transparency, Modern Slavery and 
human rights
•	 Clear policies, procedures and governance are in place managing and detailing the 
controls required to mitigate product safety, product integrity and ethical risks across 
both the food and general merchandise businesses and to comply with all 
applicable regulations 
•	 These help ensure product safety is maintained through the end-to-end operations. This 
includes safety processes in place in our depots and stores covering refrigeration, security 
and storage quality management controls in place to ensure product safety and integrity 
for all products
•	 There are separate Technical functions implementing safety and quality frameworks, 
including training, for the Food and General Merchandise businesses. This ensures 
arrangements reflect the specific products risks in each area for our own brand products 
•	 Across both food and general merchandise, there are established supplier audit and 
product testing programmes in place to support rigorous monitoring of supplier sites, 
product safety, traceability, integrity and ethical issues, including Modern Slavery. 
Supplier terms, conditions and product specifications set clear standards for product/raw 
material safety and quality with which suppliers are expected to comply. Third-party 
Ethical audits are minimum requirements for all sites and in Food all suppliers have 
minimum Third Party Food Safety and Quality audit requirements
•	 In food, there is an established supplier risk assessment and supplier requirements are 
detailed in Food Safety, Non-Food Safety and Responsible Sourcing Manuals. An Audit 
Programme assesses and verifies compliance with these requirements. All direct 
manufacturing sites have a Food Safety audit a minimum of once every three years (risk 
dependent) and all new sites have an Onboarding Audit. New Integrity audit launches this 
year in high risk areas, to verify compliance authenticity, product claims and welfare 
requirements in the Responsible Sourcing Manual
•	 In general merchandise, technical standards are signed-off and tracked through the 
product development lifecycle. General merchandise site audits and visit programmes are 
established based on performance and risk. As a minimum sites are audited every two 
years and visited every three years by the Technical and Ethical Team
•	 There are incident management escalation procedures in place to quickly resolve issues 
for food and non-food product incidents, including risk assessing and removing product 
from sale if required
Direct oversight: Group Safety Committee
Link to strategy: First choice for food, Loyalty everyone loves, 
More Argos, more often
Link to key performance indicators: N/A
Movement: 
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60  J Sainsbury plc Annual Report and Financial Statements 2024
Principal Risks and Uncertainties continued
Our principal risks continued
Sainsbury’s Bank v
Risk
Mitigations
Sainsbury’s Bank is exposed to a number of risks, including 
those related to operational, regulatory, credit, capital, 
funding, liquidity and market risks. 
In January 2024, the Group announced a shift to offering 
financial services via a distributed model, leading to a phased 
withdrawal from its core banking business. This introduces 
execution-related risks and heightens some risk types 
including people, liquidity and capital adequacy. High interest 
rates and cost of living pressures, together with subdued GDP 
growth, continue to stretch household budgets. Customer 
impacts are closely monitored with tailored support offered as 
required. The Bank undertakes stress testing to ensure it 
remains financially resilient over a range of economic 
outcomes including higher inflation.
•	 The Bank is managed through defined governance structures that include the Board of 
Sainsbury’s Bank plc, its Risk Committee and Audit Committee. The Board of Sainsbury’s 
Bank plc is comprised of Executive Directors, independent Non-Executive Directors and a 
member of the Operating Board
•	 The Bank has a defined risk appetite aligned to delivery of strategic objectives and has 
implemented a risk management framework that is overseen by its Risk Committee. This 
Committee monitors the effectiveness of risk management activities against strategic, 
operational, compliance and financial risks, and is updated on, and discusses, emerging 
risk areas. In particular, the Risk Committee reviews the results of stress testing including 
the internal Liquidity and Capital Adequacy Assessments
•	 The actual management of risks is through an executive governance structure, which 
manages the day-to-day operations of the business. This includes the Sainsbury’s Bank 
Management Board, an Executive Risk Committee and an Asset and Liability Committee. 
This is underpinned by a three line of defence framework which provides a basis for the 
identification and management of all risks associated with our business model and 
strategy whilst ensuring there is effective oversight and challenge in place
•	 Oversight by J Sainsbury plc is provided through:
	–
Updates on key matters arising from meetings of the Bank Risk and Audit 
Committees are reported to the J Sainsbury plc Audit Committee
	–
A Joint Oversight Committee including Group and Bank representation has been 
established to guide execution of the new financial service strategy
	–
There are a number of reserved matters that require Sainsbury’s Bank plc to receive 
prior approval from the Board of J Sainsbury plc
Direct oversight: The Boards of J Sainsbury plc and Sainsbury’s 
Bank plc
Link to key performance indicators: N/A
Movement: 
Trading environment and customer expectations  v
Risk
Mitigations
We operate in a highly competitive market during a time of 
increased economic uncertainty, driven by the cost of living 
crisis, high inflation impacting the cost of goods and 
operations and continuing global supply chain issues. The 
business, across all brands, must continue to ensure we 
remain competitive and evolve to meet customer 
expectations.
With the outlook set to remain challenging, we need to 
respond appropriately and at pace to external market 
conditions while maintaining clear focus on delivering our 
strategic objectives. 
We also need to be mindful of the ongoing risk of supplier 
failure, either through insolvency or through an inability to 
deliver products due to global supply chain challenges. 
•	 We have a wide, differentiated portfolio of brands, including Sainsbury’s, Argos, Habitat, 
Tu clothing, Nectar and Sainsbury’s Bank, which provides some inherent resilience to 
unforeseen changes
•	 The Customer, Commercial and Channels Forum, chaired by the Chief Marketing Officer, is 
responsible for ensuring the customer is at the heart of our decision-making on range and 
execution. During the cost of living crisis, we have supported our customers through price 
investment activities
•	 We continually monitor customer attitudes, behaviours and satisfaction, current market 
trends and price points across competitors. We respond through actively managing price 
positions, developing sales propositions and adjusting promotional and 
marketing activity
•	 We remain focused on value, quality, innovation and convenience, reflecting both what 
existing customers want and what will attract new customers 
•	 We continue to offer and develop different price points to meet customer needs, ensuring 
we retain existing and attract new customers 
•	 In terms of supplier continuity specifically, we maintain regular, open dialogue with key 
suppliers concerning their ability to trade, and collaborate with them on solutions where 
appropriate. The variety and breadth of our supply base allows us to continue to source 
products and mitigate the risk of local disruption, with sourcing offices located in key 
buying regions including India, Bangladesh, Hong Kong and Shanghai
•	 Reflecting the continued challenges faced in global supply chains including the impact of 
regional conflicts and other geo-political factors, we have continued to work closely and 
collaboratively with all our suppliers to maintain availability of products. Actions taken 
include working with our carrier partners to mitigate the impact of supply route 
disruption, onboarding alternate suppliers, rationalising products, forecasting demand 
and providing logistics support
Direct oversight: Customer, Commercial and Channels Forum; 
Operating Board
Link to strategy: All strategic priorities
Link to key performance indicators: Grocery Market Share
Movement: 
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Colleague engagement, retention and capability
Risk
Mitigations
The business employs over 148,000 colleagues who are critical 
to the success of our business. Attracting talented colleagues, 
investing in training and development and rewarding 
colleagues fairly are all essential to the sustainability of our 
operations. An inability to attract, motivate and retain talent, 
specific skillsets and capability would impact our ability to 
deliver our strategic objectives. The availability of skills in 
specific areas is a key area of focus, given the challenging 
labour market. 
The challenging trading environment requires a focus on 
efficient operations, which may include change initiatives that 
affect colleagues, impacting trust or engagement.
•	 Employment policies and remuneration and benefits packages are regularly reviewed 
and are designed to be fair, consistent and competitive. This year we have invested £200 
million in colleague pay. We continue to offer free food in our stores, depots, LFCs and 
Contact Centres and we introduced free sanitary products in all sites in July 2023. During 
the year, we made further enhancements to our colleague discount offer, increasing 
discount in Sainsbury’s from 10% to 15% every Friday and Saturday
•	 The workforce strategy was developed with and owned by the Operating Board to identify 
the key skills and capability shifts needed to help plan for the long term
•	 Formal processes are in place to nurture talent and provide fulfilling career opportunities 
through performance and development discussions, talent management, succession 
planning and investment in developing leaders to build capability and support a 
positive culture
•	 Stretching gender, ethnically diverse and Black representation targets have been set, 
linked to leadership long-term incentives 
•	 Colleague sentiment and views are sought through regular ‘We’re Listening’ surveys, 
analysis of Viva Engage activity direct colleague engagement and engagement with trade 
unions. We benchmark our engagement against global benchmarks and specific retail 
benchmarks. In addition, Operating Board Directors hold active listening sessions on a 
regular basis
•	 Specific programmes are in place to target hard-to-recruit areas, presenting a wide range 
of opportunities for colleagues from across the business, as well as attracting new talent
Direct oversight: Operating Board
Link to strategy: All strategic priorities
Link to key performance indicators: Colleague engagement
Movement: 
Environment and Social Sustainability
Risk
Mitigations
Plan for Better was launched in 2021 and puts our 
responsibilities towards our planet and people at the core of 
our purpose and business. 
By understanding and mitigating the impact of the climate, 
biodiversity loss and nature crises on our business operations, 
reducing our environmental impact as well as using our size 
and scale to mobilise action, we want to build a more resilient 
business and play a leading role in creating a more sustainable 
food system.
•	 Our Plan for Better sets out our sustainability goals across our whole business, outlining 
our priority areas of focus, our key commitments and our progress. We have aligned our 
focus to the UN Sustainable Development Goals and, through a materiality assessment, 
we have identified which issues matter most to our stakeholders so that we can make the 
biggest difference. Our plan has three interlocking pillars: Better for you, Better for the 
planet and Better for everyone (see page 15 for further detail)
•	 The Plan for Better Steering Committee met regularly during the year and provided 
regular updates to the Corporate Responsibility and Sustainability Committee and to the 
Operating Board as required. This Steering Committee oversees delivery of the Plan for 
Better programme
•	 One of our key metrics to measure and report on Plan for Better performance is our 
progress towards becoming net zero by 2035 in our own operations and in our value chain 
by 2050. We will continue to monitor our progress in achieving our targets, flexing our 
approach as needed. We also publicly report on progress towards achieving all of our 
targets within Plan for Better annually to ensure transparency
•	 See pages 30 to 43 for more information on our approach to managing climate risk and 
actions to transition to net zero by 2035 included in our TCFD disclosure
Direct oversight: Corporate Responsibility and Sustainability 
Committee, Plan for Better Steering Committee
Link to strategy: All Strategic Priorities 
Link to key performance indicators: Plan for Better 
commitment
Movement: 
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62  J Sainsbury plc Annual Report and Financial Statements 2024
Statement of Viability
1)	 How Sainsbury’s assesses 
its prospects
The Group’s business activities and strategy are central to assessing its 
future prospects. These, together with factors likely to affect its future 
development, performance and position are set out in the Strategic Report 
on pages 1 to 65. The financial position of the Group, its cash flows and 
liquidity are highlighted in the Financial Review on pages 46 to 52. 
The Group manages its financing by diversifying funding sources, 
structuring core borrowings with phased maturities to manage refinancing 
risk and maintaining sufficient levels of committed funding via the 
Revolving Credit Facility. Maintaining a suitable level of undrawn additional 
funding capacity minimises liquidity risk.
The Group’s prospects are assessed primarily through its corporate planning 
process. This includes an annual review which considers profitability, the 
Group’s cash flows, committed funding and forecasted future funding 
requirements over three years, with a further year of indicative movements. 
As part of the strategic planning process, the Directors make a number of 
assumptions about business performance and the availability and effectiveness 
of mitigating actions available to the Group. In particular, cash flow forecasting 
gives visibility of the Group’s funding headroom, comparing net debt to the 
level of committed facilities over the planning period.
The most recent corporate plan was signed off in January 2024, as part of 
the normal budgeting process. This is reviewed by the Operating Board and 
ultimately by the Board with involvement throughout from both the CFO and 
Chief Executive. Part of the Board’s role is to consider the appropriateness of 
the key assumptions, taking into account the external environment, 
business strategy and model.
In its assessment of the Group’s prospects, the Board has taken into account:
•	 The Group’s Next Level Sainsbury’s strategy. Building on the success 
of the Food First strategy, we’re determined to be First choice for food, 
ensuring more customers in more of our stores can enjoy more brilliant 
Sainsbury’s food. We’ve committed to deliver profitable sales growth and 
further grocery volume share gain
•	 Changes to the Group’s Financial Services Model. We announced in 
January 2024 that financial services products offered in the future will be 
provided by dedicated financial services providers, with a phased 
withdrawal from the core Banking business. This will result in a 
significant period of change for the Bank. In the short term, there will be 
no immediate changes to existing products and services. Our forecasts 
have taken into account a number of different potential outcomes to 
achieve the strategic changes 
•	 Inflationary pressures. Sustained levels of high inflation continue to 
put pressure on aspects of the Group’s cost base. Impacts for inflationary 
pressures could persist for longer or at a greater degree than currently 
expected, which could result in more cautious consumer spending, 
particularly on discretionary items
•	 Climate change considerations. The Group’s most recent corporate 
planning and budgeting processes includes assumed cash flows to 
address climate change risks, including costs associated with initiatives 
in place as part of the Plan for Better commitment. These include 
reducing environmental impacts and meeting customer expectations 
in this area, notably through reducing packaging and reducing energy 
usage across the estate
•	 The Group’s financial position. The Group has continued to generate 
strong free cash flow and successfully reduced total net debt over the 
year as part of the continued focus on deleveraging. Furthermore, the 
committed Revolving Credit Facility, which enables the Group to maintain 
sufficient levels of contingent funding, has two £500 million facilities that 
were extended by a further 12 months during the year. Facility A has a 
maturity of December 2028 and Facility B has a maturity of December 
2027. As at 2 March 2024, the Revolving Credit Facility was undrawn. 
In addition, the Group has in place a £575 million committed term loan 
facility with maturity of March 2026. This was fully drawn at the report 
date in order to part fund the acquisition of a property portfolio. 
In assessing the Group’s prospects it has been assumed that this 
facility will be repaid in full at maturity from the Group’s cash resources
2)	 The assessment period
The Directors have determined that the three years to March 2027 is an 
appropriate period over which to provide its viability statement. This was 
considered the appropriate timeframe by the Directors because:
•	 This period is consistent with that used for the Group’s corporate planning 
process as detailed above, and reflects the Directors’ best estimate of the 
future prospects of the business
•	 The Group does not earn revenue through long-term contracts. Therefore, 
changes to the Group’s Corporate Plan are predominantly impacted by 
sales and cost assumptions. These are more difficult to predict beyond 
a three-year time horizon. Both have been stress-tested as part of the 
viability assessment
3)	 Assessment of viability
To make the assessment of viability the following has been performed:
•	 Scenarios have been modelled over and above those in the corporate plan, 
based upon a number of the Group’s principal risks and uncertainties (as 
documented on pages 53 to 61). The scenarios were overlaid into the 
corporate plan to assess the potential impact on net debt of one or more 
of these crystallising over the assessment period. These have been tested 
in isolation and in combination with one another. The impact of the 
movements in net debt on the Group’s funding headroom were then 
assessed. Where required, available mitigating actions to maintain 
funding headroom were considered as part of the assessment. These 
include reducing any non-essential capital expenditure and operating 
expenditure on projects, discretionary pay and dividend payments
•	 Reverse stress-testing was performed to determine the extent to which 
cash flows would need to deteriorate before fully utilising the Group’s 
funding headroom or breaching its financial covenants and after taking 
into account any mitigating actions as detailed above
Whilst each of the risks on pages 53 to 61 has a potential impact and have 
been considered as part of the assessment, only those that represent severe 
but plausible scenarios were selected for modelling through the corporate plan. 
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J Sainsbury plc Annual Report and Financial Statements 2024  63
All scenarios modelled and their link to the Group’s Principal Risks and Uncertainties are detailed below:
Scenario modelled
Link to Principal Risk
Scenario 1 – Recessionary scenario
With sustained macroeconomic pressures, consumers continue to experience elevated levels of inflation and high 
interest rates. There is a risk that this could persist for longer or at a greater degree than currently expected, impacting 
consumer confidence and disposable incomes. This could result in a reduction in consumer spending on discretionary 
items across our general merchandise and clothing business, and in downtrading in our grocery business.
Assumptions:
•	 Sales – volume losses in line with the 2008 recession phasing have been applied to forecast sales
•	 Business continuity, operational 
resilience and major incidence 
response
•	 Trading environment and 
customer expectations
Scenario 2 – Data and legal breaches and regulatory changes
The impact of any regulatory fines has been considered. The largest considered are the General Data Protection 
Regulation (GDPR) fine for data breaches, and fines levied by the Groceries Supply Code of Practice (GSCOP).
Assumptions:
•	 Costs – amount paid for regulatory fines
•	 Data security
•	 Safety and security
•	 Product safety and sourcing
•	 Political and regulatory 
environment
Scenario 3 – Sainsbury’s Bank capital and liquidity requirements
We have considered the strength of the Bank’s capital and liquidity positions to withstand extreme-but-plausible stress 
scenarios such as a pandemic, or political instability leading to high unemployment and very low interest rates.
Additionally, we have considered the cost impacts of the strategic change of financial services products offered in the 
future being provided by dedicated financial services providers. The evaluation included the quantification of potential 
adverse impacts of customer behaviour as well as the timing of repayment of amounts due to external parties.
Assumptions:
•	 Sales – reflecting another severe recession stress as per the Annual Cyclical Scenario testing release by the Bank of England
•	 Costs – those associated with restructuring the financial services model are significantly in excess of that estimated
•	 	Liquidity – early repayment of amounts due to external parties
•	 	Liquidity – significant reduction as a result of potential adverse customer behaviour in the first year of assessment
•	 Sainsbury’s Bank 
Scenario 4 – Failure to deliver sustainable cost savings
Delays in delivering the Save to Invest programme, which would have an impact of c. £130 million in each year of the 
assessment period, were considered.
Assumptions:
•	 Costs – additional costs of c. £130 million per annum as result of failure to deliver cost savings
•	 Business strategy and change
Scenario – Reverse stress test
In addition to modelling regulatory fines and price investments as above, the level of forecast sales decline required 
before the Group fully utilises its available funding and mitigations, or breaching its financial covenants, was 
considered. The required reduction was considered extreme and implausible.
In performing the above analysis, the Directors have made certain assumptions around the availability and effectiveness of the mitigating actions available 
to the Group.
The scenarios above are hypothetical and severe for the purpose of creating 
outcomes that have the ability to threaten the viability of the Group; 
however, multiple control measures are in place to prevent and mitigate any 
such occurrences from taking place. 
The modelling has shown that the business is able to withstand a 
combination of all of the scenarios and still maintain funding headroom 
throughout the plan period.
Taking into account the Group’s current prospects and principal risks and 
uncertainties, the Directors confirm that they have a reasonable expectation 
that the Group will be able to continue in operation and meet its liabilities as 
they fall due over the three years to March 2027.
4)	Going concern
As a consequence of the work performed to support the viability statement 
above, the Directors also considered it appropriate to adopt the going 
concern basis in preparing the financial statements which are shown on 
pages 122 to 198.
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64  J Sainsbury plc Annual Report and Financial Statements 2024
Non-financial and sustainability information statement
In the following pages, we present 
information relating to the non-
financial reporting requirements 
contained in sections 414CA and 
414CB of the Companies Act 2006. 
These reflect our commitment to and management of environmental and 
social matters (as listed in the requirements) and how these impact our 
business and key stakeholders. 
Our Commitment
Our approach
Where to find more information and outcomes
Colleagues
We want to be a place where people love to work and shop. 
This means being an inclusive employer where colleagues 
are treated fairly and with respect, and where they are 
encouraged to develop their skills and fulfil their potential. 
Colleague wellbeing and safety is a priority. We are 
committed to doing all that we can to support our colleagues, 
particularly in the current environment, and have continued 
to make significant investments in pay.
•	 Chair’s letter on page 2
•	 Plan for Better Report on page 15
•	 Our people on page 18
•	 Engaging with our stakeholders and our Section 172 
statement on page 22
•	 Operational KPIs on page 44
•	 Nomination and Governance Committee Report on page 85
•	 Annual Statement from the Remuneration Committee 
Chair on page 99
•	 Gender and Ethnicity Pay Reports
Environment
Our sustainability plan, Plan for Better, is integrated across 
our business to ensure that we achieve our sustainability 
goals. One of its key pillars, Better for the Planet, includes our 
environmental targets, priority areas of focus, and key 
commitments. Progress against these targets is described 
in this Annual Report and Accounts and in our standalone 
Plan for Better Report.
With the impacts of climate change being felt around the 
world, we understand the important leadership role we can 
play to address these challenges. We have embedded the 
recommendations of the Task Force on Climate-related 
Financial Disclosures (TCFD) within our Plan for Better to 
strengthen our climate resilience. Climate-related Financial 
Disclosures (CFD), in accordance with Companies (Strategic 
Report) (Climate-related Financial Disclosure) Regulations 
2022 are included within our TCFD report.
•	 Plan for Better Report on page 15
•	 Task Force on Climate-related Financial Disclosures, 
on page 30
•	 Engaging with our stakeholders and our Section 172 
statement on page 22
•	 Corporate Responsibility and Sustainability Committee 
Report on page 89
Further information, including the following disclosures 
and policies, can be found at www.about.sainsburys.co.
uk/sustainability.
•	 Plan for Better Report
•	 SASB Disclosure
•	 CPD Water Disclosure
•	 CPD Climate Change Disclosure
•	 CPD Forests Disclosure
•	 Policy on Ethical Sourcing
•	 Policy on Palm Oil
•	 Policy on Manmade Cellulosic Fibres
•	 Policy on Cotton
•	 Policy on Timber
•	 Policy on Leather
•	 Policy on Precious Metals and Minerals
•	 Policy on Forest Products
•	 Policy on Feather and Down
•	 Requirements for Soy Feed
Community
We have a long history of building partnerships and delivering 
great impact in our communities, locally and internationally. 
Our business relies on strong, resilient communities and 
we’re committed to supporting social cohesion, economic 
prosperity and inclusive growth. We have presence in 
thousands of communities across the country and aim to 
help positively impact those in need through fundraising, 
volunteering, donations and raising awareness. Our 
Community and Partnership strategy is aligned to Good 
food for all of us. 
Alongside our community investment, we make positive 
economic contributions through our responsible approach to 
tax. We contributed approximately £2.3 billion in cash taxes 
borne and collected this year.
•	 Chair’s letter on page 2
•	 Plan for Better Report on page 15
•	 Engaging with our stakeholders and our Section 172 
statement on page 22
•	 Corporate Responsibility and Sustainability Committee 
Report on page 89
•	 Groceries Supply Code of Practice
•	 Policy on Whistleblowing
Further information can be found at https://about.
sainsburys.co.uk/sustainability/better-for-everyone/
community-and-partnerships.
All our public policies, reports and standards are available at  
www.about.sainsburys.co.uk
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Our Commitment
Our approach
Where to find more information and outcomes
Human 
rights
At Sainsbury’s, we fully recognise our responsibility as a 
company to respect and protect human rights throughout all 
our operations. We have a long history of setting high 
standards and working collaboratively with our suppliers to 
ensure they are met, and we work hard to embed respect for 
human rights and ethical practices throughout our business.
We are committed to respecting human rights across our 
value chain to ensure the people who make or grow our 
products are not being exploited or exposed to unsafe 
working conditions. We also ensure that our business’s 
transition to net zero is just and equitable for the 
communities we source from. We have identified and 
prioritised our salient human rights risks and set ambitious 
commitments to drive forward progress in these priority 
areas: forced labour, sustainable livelihoods, safe and healthy 
working environments, discrimination and grievance 
mechanisms. Through our due diligence processes, we seek to 
identify, prevent and, where needed, mitigate and remediate 
adverse human rights risks that are linked to our operations, 
products or services.
•	 Chair’s letter on page 2
•	 Plan for Better Report on page 15
•	 Engaging with our stakeholders and our Section 172 
statement on page 22
•	 Corporate Responsibility and Sustainability Committee 
Report on page 89
•	 Modern Slavery Statement
•	 Policy on Ethical Sourcing
•	 Policy on Human Rights
•	 Policy on Whistleblowing
•	 Policy on Home Work
•	 Policy on Prison Labour
Further information can be found at www.about.
sainsburys.co.uk/sustainability/better-for-everyone/
human-rights.
Anti-bribery 
and 
corruption
Our values form the framework which guides the behaviours 
of all colleagues and suppliers across the business. We expect 
all our colleagues, contractors and suppliers to act with 
honesty and integrity and never to engage in any activity 
which could be considered as accepting or giving a bribe.
Our Policy on Anti-Bribery and Corruption provides guidance 
and expectations on our colleagues’ responsibilities and 
behaviour, and our expectations to prevent bribery and fraud. 
We have a Disciplinary and Appeals Policy to help encourage 
everyone to maintain our rules and standards of conduct, 
attendance, capability and performance.
Our Policy on Whistleblowing covers how to report 
wrongdoing when honesty and integrity are compromised.
•	 Audit Committee Report on page 92
•	 Compliance with the Grocery Supply Code of Practice on 
page 96
•	 Policy on Anti-Bribery and Corruption
•	 Policy on Whistleblowing
Other 
information
Other information to support this statement can be found on 
the following pages:
•	 Business Model on page 8
•	 Our strategy on page 10
•	 Non-financial KPIs on page 44
•	 Principal Risks and Uncertainties on page 53
•	 Statement of Viability on page 62
•	 Board leadership and Company purpose on page 73
•	 Audit Committee Report on page 92
The Strategic Report was approved by the Board of Directors and signed on its behalf by:
Bláthnaid Bergin
Chief Financial Officer
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66  J Sainsbury plc Annual Report and Financial Statements 2024
Introduction to the Governance Report
Dear Shareholder
The Board’s continued focus on the 
implementation of the strategy we outlined 
in November 2020 has delivered a balanced 
outcome for our customers, colleagues, 
suppliers and shareholders. In February 2024, 
we announced our Next Level Sainsbury’s 
strategy, which builds on the current 
momentum as well as ensuring that we 
deliver returns to shareholders. 
In November 2020, we shared the key metrics by which we would judge our 
progress against the strategy. I am pleased to report that we have achieved our 
objective of putting food back the heart of Sainsbury’s and Simon and the 
Operating Board have done an excellent job at delivering against our key 
performance measures across each of our five strategic pillars. This has been 
delivered in a balanced way, whilst investing in our colleagues and increasing 
customer satisfaction. We are, today, a fundamentally stronger business than 
we were in November 2020. 
The Board and the Operating Board have worked collaboratively during 2023/24 to 
review our strategy, culture, purpose and values and to set out our new multi-year 
purpose and strategy and the strategic priorities that will help us to deliver against 
it. Our focus on being a purpose-led organisation will allow us to continue to be a 
Food First and People First business, to stay competitive, accelerate growth and 
generate strong free cash flow and higher returns. Further detail on our updated 
strategy and priorities can be found on pages 10 to 14. 
Our purpose articulates the impact we want to create for customers and wider 
stakeholders. This year, we have established a new purpose which creates multiple 
opportunities for commercial and social growth. As a Board, we are responsible for 
ensuring that the business is purpose-led and our decision-making and activities 
reflect the purpose and drive the right behaviours. This means that we will be 
asking ourselves in every decision we make how this will ensure that we make 
good food joyful, accessible and affordable for everyone, every day. 
My role as Chair is to maintain high standards of corporate governance and ensure 
the Board is equipped to carry out its duties, spending sufficient time on key areas 
that enable the delivery of our strategic priorities. Our corporate governance 
framework clearly defines responsibilities and ensures that the Group has the 
right systems and controls to enable the Board and its Committees to effectively 
oversee the business, providing challenge where necessary. 
The Board regularly engages with shareholders to help inform strategic 
decision-making and to understand their views. Throughout the year, the Board 
received updates on shareholders, including their feedback and key areas of 
focus and views on the retail sector. We are pleased to recommend a final 
dividend of 9.2p per share, reflecting our commitment to deliver strong 
dividends for shareholders. Updates on customer feedback, insight, consumer 
sentiment metrics and trends are regularly provided to the Board, steering our 
responses to the key issues impacting customers. This understanding of our 
customers has helped the Board to shape the implementation of our Next Level 
Sainsbury’s strategy, including key decisions on price investment to offer 
customers consistent value.
Our colleagues have continued to deliver for our customers and I am grateful for 
their exceptional service and commitment. The Board is committed to 
supporting our colleagues and we have made our biggest ever single investment 
to reward hourly paid colleagues, accelerating our commitment to always invest 
in our people first. This investment brings the three-year total investment to 
over £500 million. 
Colleague feedback is critical to the Board and we continue to monitor our 
culture through our Make It Better Together panels, colleague listening and 
the outputs of our We’re Listening colleague engagement survey. The Board 
engages directly with colleagues through our National Make It Better Together 
Group to understand the views of colleagues from across the business. 
Updates from these sessions are shared and discussed at Board meetings, 
Compliance with 
the Corporate 
Governance Code 
2018 (Code)
The Board considers that the 
Company has complied in full 
with the Principles and 
Provisions of the Code 
(available at www.frc.co.uk). 
Further details on how we 
comply with the Code are 
available in the Strategic and 
Governance Reports, 
as outlined below.
Board leadership and 
Company purpose
  More information can be found  
on pages 73 to 80
Division of 
responsibilities
  More information can be found  
on page 84
Composition, succession 
and evaluation
  More information can be found  
on pages 81 to 83
Audit, risk and internal 
control
  More information can be found  
on pages 92 to 98
Remuneration
  More information can be found  
on pages 99 to 117
feeding into our decision-making process. Further information on how we 
monitor culture can be found on pages 18 to 21 and 78.
The Board is also mindful of the impact its decisions have on our suppliers. 
During the year, the Board received regular updates on supplier relationships 
and directly engaged with key suppliers, enabling greater understanding of the 
challenges they face and building stronger partnerships. 
The Group’s diversity, equity and inclusion strategy is a key area of focus 
for the Board and its Committees. Our commitment to this strategy is 
demonstrated by the composition of the Board and senior leadership teams. 
The Board has set ambitious targets to increase representation of women and 
Ethnically Diverse colleagues in our senior leadership and senior management 
positions, whilst also ensuring that all appointments are made on merit and 
meet the needs of the Group. 
Our sustainability strategy is a key priority for the Board and the Corporate 
Responsibility and Sustainability Committee, whose report is set out on pages 
89 to 91. Plan for Better is a core part of our broader strategy and Board agenda 
and we have made significant progress over the last year, further integrating 
sustainability into our daily business operations. Plan for Better is at the core of 
our new purpose and we are taking a leading role in creating a sustainable food 
system to truly make good food for all of us.
Central to setting the right tone from the top and maintaining high standards of 
corporate governance is the review of the Board’s own performance. An internal 
evaluation was conducted in 2023/24, which concluded that the Board and each 
of its Committees continue to be effective. The Board’s strengths included our 
stakeholder-led approach, the ability to execute on strategy and the 
constructive engagement between the Board and the Operating Board. Our 
progress against last year’s areas of focus, as well as further information on this 
year’s evaluation, can be found on pages 82 to 83.
After 22 years with Sainsbury’s, Tim Fallowfield has decided to retire as Company 
Secretary and Corporate Services Director this July, after our AGM. On behalf of the 
Board, I would like to thank Tim for his exceptional contribution to the success and 
governance of the business and for all of the support he has provided to me, the 
Board and the Operating Board. Tim’s legacy includes our brilliant Sainsbury 
Archive, which he founded with Lord John Sainsbury in 2003. I’m delighted that 
Tim has become Chair of the Archive and we will continue to benefit from Tim’s 
leadership and experience in the future. I would like to thank all of my Board 
colleagues for their commitment, support and flexibility over the past year.
Martin Scicluna
Chair
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J Sainsbury plc Annual Report and Financial Statements 2024  67
Governance at a glance
We have delivered on our priorities to develop and grow the business, whilst 
ensuring that our strategy remains aligned with our purpose, culture and values.
Our year 
Key Board decisions 
•	 Overseen the changes and planning required for the finalisation of the Group’s updated strategy, together with a revised purpose and 
commitments
•	 Approval of a share buyback programme and a progressive dividend policy
•	 Entry into the EV charging market and the launch of Smart Charge
•	 Concluded its strategic review of the Financial Services division 
Board and Committee attendance (scheduled meetings)
Board
Audit  
Committee
Corporate Reporting and 
Sustainability Committee
Nomination and 
Governance Committee
Remuneration  
Committee
Martin Scicluna
8/8
–
2/2
1/1
–
Bláthnaid Bergin
8/8
–
–
–
–
Jo Bertram
8/8
–
2/2
1/1
–
Brian Cassin
8/8
4/4
–
1/1
–
Jo Harlow
8/8
4/4
2/2
1/1
3/3
Adrian Hennah
8/8
4/4
–
1/1
3/3
Tanuj Kapilashrami
8/8
–
–
1/1
3/3
Simon Roberts
8/8
–
2/2
–
–
Keith Weed
8/8
4/4
2/2
1/1
–
Highlights 
71%
Colleagues who told us they are 
 happy at work
Strategy
Capital Markets Day held in 
February to launch Next Level 
Sainsbury’s strategy
“A” rating 
Awarded “A” rating for our Climate 
Change CPD submission for tenth 
consecutive year
Our Board 
What we bring to the Board 
The Board benefits from a wide range of backgrounds and strengths. 
The diagram below provides an overview of the number of Board 
members with specific skills, experience and knowledge. Read more 
on pages 68 to 70. 
Board skills matrix at 24 April 2024 
Corporate Transactions
5
Sustainability 
7
E-commerce/Technology
8
Operations/ General Retailing Experience
6
Risk Management/ Internal Audit
9
Remuneration
6
Finance/Accounting/Audit
5
Financial Services
4
HR/People
7
Current or recent CEO Experience
4
Brand/Marketing
5
Digital/Online
3
Strategic Development and 
Implementation
9
As at 2 March 2024
As at 4 March 2023
5
4
6
3
8
1
8
1
7
2
7
2
4
1
2
0-3 
years
4-6 
years
7-9 
years
3
0
4
0-3 
years
4-6 
years
7-9 
years
Read more on pagew 18 to 21
Read more on page 15
Read more on pages 10 to 14
Board composition 
Board tenure
(Non-Executive Directors  
and Chair)
Board gender diversity
 Men
 Women
Board ethnic diversity
 White
 Ethnically Diverse
Board balance
 Non-Executive Directors
 Executive Directors
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68  J Sainsbury plc Annual Report and Financial Statements 2024
J Sainsbury plc – Board of Directors 2024/25
Martin Scicluna
Chair
C  N
Appointed to the Board: 1 November 2018. 
Martin joined the Board as Chair Designate and 
Non-Executive Director on 1 November 2018. 
He was appointed Chair of the Board on 
10 March 2019.
Skills and experience: Martin brings a wealth 
of experience from over 30 years’ service as an 
executive and non-executive board director at a 
wide range of companies. Previous roles include 
Chairman of RSA Insurance Group plc, Chairman 
of Great Portland Estates plc, Senior Independent 
Director and Chair of the Audit Committee of 
Worldpay Inc., and Non-Executive Director and 
Chair of the Audit Committee of Lloyds Banking 
Group plc. He was a partner at Deloitte LLP for 
26 years, serving as Chairman from 1995 to 2007, 
where his clients included Dixons, WH Smith, 
Alliance Unichem and Cadbury.
External appointments: None.
Specific contributions to the Company’s 
long-term success: Martin has extensive 
experience as a Chair. He brings valuable 
knowledge and skills in developing strategy and 
evaluating business opportunities, along with an 
understanding of the financial services sector 
and how it operates. As Chair, Martin has a deep 
understanding of governance and what is needed 
to lead an effective Board.
Independent: Upon appointment.
Key to Committee members
A 	 Audit Committee
C 	 Corporate Responsibility and 
Sustainability Committee
N 	 Nomination and Governance Committee
R 	 Remuneration Committee
	 Denotes Chair of Committee
Simon Roberts
Chief Executive
C  
Appointed to the Board: 1 June 2020. 
Simon was appointed as Chief Executive on 
1 June 2020, having joined Sainsbury’s and the 
Operating Board in July 2017 as Retail & Operations 
Director, with responsibility for Stores, Central 
Operations and Logistics.
Skills and experience: Simon has worked in 
retail for over 35 years, having started at Marks 
and Spencer and joined Sainsbury’s from Boots, 
where he was Executive Vice President of 
Walgreens Boots Alliance and President of 
Boots UK and Ireland.
External appointments: President of IGD, 
Member of the Government’s Retail Sector 
Council, and an Advisory Board Member of 
Diversity in Retail.
Specific contributions to the Company’s 
long-term success: Simon is leading 
Sainsbury’s plan to become First choice for food. 
Under Simon’s stewardship, Sainsbury’s has 
launched its Plan for Better, which is integrated 
into our strategy and includes a bold commitment 
to become net zero across our own operations by 
2035. Simon has led significant investments into 
colleague pay, most recently leading the industry 
in paying the Living Wage across the whole 
country. Simon is the Operating Board Sponsor 
for Inclusion and is a dedicated, determined and 
enthusiastic champion for our customers and 
colleagues and for inclusion and diversity across 
our company.
Independent: No.
Bláthnaid Bergin
Chief Financial Officer
 
Appointed to the Board: 5 March 2023. 
Bláthnaid was appointed as Chief Financial 
Officer on 5 March 2023, having joined Sainsbury’s 
in 2019 as Group Director of Finance before 
becoming Commercial and Retail Finance 
Director in 2021.
Skills and experience: Prior to joining 
Sainsbury’s, Bláthnaid held senior finance 
leadership roles at Aviva and RSA. She is a 
qualified Chartered Accountant and spent 
most of her career at GE in various finance 
roles working across Europe, Asia and Australia. 
Bláthnaid was previously Non-Executive Director, 
Chair of the Audit Committee and Senior 
Independent Director for Artemis Alpha 
Investment Trust.
External appointments: None.
Specific contributions to the Company’s 
long-term success: Bláthnaid is a highly 
respected leader with a strong record of financial 
leadership. Over the last five years at Sainsbury’s, 
she has supported the development and delivery 
of our strategy. Bláthnaid has extensive 
international and finance experience gained 
during previous and current executive and 
non-executive positions.
Independent: No.
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J Sainsbury plc Annual Report and Financial Statements 2024  69
Key to Committee members
A 	 Audit Committee
C 	 Corporate Responsibility and 
Sustainability Committee
N 	 Nomination and Governance Committee
R 	 Remuneration Committee
	 Denotes Chair of Committee
Jo Bertram
Non-Executive Director
C  N
Appointed to the Board: 7 July 2022.
Skills and experience: Jo is a highly 
talented strategic business leader with 
significant experience leading transformation 
and change. Prior to becoming Managing 
Director, Business & Wholesale at Virgin Media 
O2, Jo held senior Director and Strategy roles at 
O2. Between 2013 and 2017, she held the position 
of Regional General Manager, Northern Europe at 
Uber. Jo has previously worked at McKinsey and 
Accenture and holds an MBA from INSEAD.
External appointments: Managing Director, 
Business & Wholesale at Virgin Media O2.
Specific contributions to the Company’s 
long-term success: Jo has worked in growing 
hi-tech sectors, which benefits our customers as 
we explore new ways to use digital solutions to 
make shopping easy and convenient.
Independent: Yes.
Brian Cassin
Non-Executive Director
A  N
Appointed to the Board: 1 April 2016. 
Brian joined the Board on 1 April 2016 and 
became the Senior Independent Director on 
7 July 2022.
Skills and experience: Brian brings relevant 
experience of running a FTSE 100 group with 
knowledge of big data and analytics, both areas 
of key importance to Sainsbury’s. As Chief 
Executive Officer of Experian plc, Brian brings 
strong leadership experience and a substantial 
background in operating within a regulated 
environment. He joined Experian plc as Chief 
Financial Officer in April 2012, a post he held until 
his appointment as Chief Executive Officer in 
July 2014. Prior to this, Brian spent his career in 
investment banking at Greenhill & Co, where he 
was Managing Director and Partner. Brian has 
also held various roles at Baring Brothers 
International and at the London Stock Exchange.
External appointments: Chief Executive 
Officer of Experian plc.
Specific contributions to the Company’s 
long-term success: Brian’s current experience 
as a Chief Executive and his work in the financial 
and technology sectors provide valuable 
industry insight.
Independent: Yes.
Jo Harlow
Non-Executive Director
C  N  R
Appointed to the Board: 11 September 2017.
Jo joined the Board on 11 September 2017 and 
became Chair of the Remuneration Committee 
in July 2022.
Skills and experience: Jo brings a wealth of 
experience in consumer-facing businesses and 
the telecoms and technology industries, both in 
the UK and internationally. She was Corporate 
Vice President of the Phones Business Unit at 
Microsoft Corporation and, before that, was 
Executive Vice President of Smart Devices at 
Nokia, following a number of senior management 
roles at Nokia from 2003. Prior to that, Jo held 
marketing, sales and management roles at 
Reebok International Limited from 1992 to 2003 
and at Procter & Gamble from 1984 to 1992. Jo 
was previously a Non-Executive Director and 
Chair of the Remuneration Committee of 
InterContinental Hotels Group plc.
External appointments: Non-Executive 
Director and Chair of the Remuneration 
Committee of Halma plc, Non-Executive Director 
and member of the Remuneration Committee 
and Nominations Committee at Centrica plc, 
and Director of Chapter Zero Limited.
Specific contributions to the Company’s 
long-term success: Jo has broad experience 
from executive and non-executive roles and she 
has helped the business deliver and evolve its 
sustainability strategy. She also brings current 
external remuneration committee experience.
Independent: Yes.
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70  J Sainsbury plc Annual Report and Financial Statements 2024
Key to Committee members
A 	 Audit Committee
C 	 Corporate Responsibility and 
Sustainability Committee
N 	 Nomination and Governance Committee
R 	 Remuneration Committee
	 Denotes Chair of Committee
J Sainsbury plc – Board of Directors 2024/25 continued
Adrian Hennah
Non-Executive Director
A  N  R
Appointed to the Board: 1 April 2021.
Skills and experience: Adrian has significant 
financial and strategic expertise from leading 
the performance and strategy of many large 
companies. He started his career working in audit 
and consultancy with PwC and Stadtsparkasse 
Köln, the German regional bank. Adrian spent 
18 years in Chief Financial Officer roles at three 
FTSE 100 companies. He was Chief Financial 
Officer at Reckitt Benckiser (RB) for seven years 
and held the same position at Smith & Nephew 
and Invensys. Prior to this, he spent 18 years at 
GlaxoSmithKline, working in both finance and 
operations. He was also previously Non-Executive 
Director and Chair of the Audit Committee 
at RELX.
External appointments: Non-Executive 
Director of Oxford Nanopore Technologies plc, 
a Non-Executive Director of Unilever plc, 
an external member (NED) of the Finance 
Committee (Board) of Oxford University Press 
and a Trustee of Our Future Health.
Specific contributions to the Company’s 
long-term success: Adrian brings extensive 
financial and leadership experience to 
Sainsbury’s gained from Chief Financial Officer 
positions held in some of the UK’s largest 
companies, notably at RB, which produces 
leading hygiene, health and nutritional brands.
Independent: Yes.
Key to Committee members
A 	 Audit Committee
C 	 Corporate Responsibility and 
Sustainability Committee
N 	 Nomination and Governance Committee
R 	 Remuneration Committee
	 Denotes Chair of Committee
Tanuj Kapilashrami
Non-Executive Director
N  R
Appointed to the Board: 1 July 2020.
Skills and experience: Tanuj is an international 
banker with significant experience in transformation, 
talent and change management, both in the UK 
and globally. She is the Chief Strategy and Talent 
Officer of Standard Chartered Bank, where she 
leads the strategy, HR, corporate affairs, brand 
and marketing, property and supply chain teams 
and in turn is responsible for how the Standard 
Chartered Bank develops, executes and 
communicates its strategy. She joined Standard 
Chartered in 2017 and has been the Bank’s CHRO 
from 2018 to 2024. Prior to this, Tanuj built her 
career in banking over 17 years in key global and 
regional HR leadership roles across multiple 
markets within HSBC. She has also previously 
served as a Director of Financial Services Skills 
Commission Limited.
Tanuj is a recognised thought-leader on the 
future of work and has been featured by leading 
global media on a range of topics, including 
culture, leadership, inclusion and skills.
External appointments: Chief Strategy and 
Talent Officer at Standard Chartered Bank, 
Associate Non-Executive Director of the Board of 
NHS England, member of the Asia House Board of 
Trustees, and on the Board of Autumn, an 
integrated digital wealth, health and lifestyle 
solutions start-up. 
Specific contributions to the Company’s 
long-term success: Tanuj is a valuable member 
of the Board as the business continues to 
adapt and support its colleagues in a rapidly 
changing marketplace.
Independent: Yes.
Keith Weed CBE
Non-Executive Director
A  C  N
Appointed to the Board: 1 July 2020.
Keith joined the Board on 1 July 2020 and became 
Chair of the Corporate Responsibility and 
Sustainability Committee on 7 July 2022.
Skills and experience: Keith is an exceptionally 
capable marketing and digital leader. He has 
championed new ways of integrating sustainability 
into business and building brands with purpose. 
Keith was awarded a CBE for services to the 
advertising and marketing industry in the 2021 
New Years Honours List. He has a strong business 
background, having spent 36 years at Unilever plc, 
most recently as Chief Marketing and 
Communications Officer, which included leading 
the company’s ground-breaking sustainability 
programme globally. Whilst at Unilever, Keith led 
different parts of the business, during which time 
he worked closely with Sainsbury’s and other 
retailers. He has strong international experience 
and knowledge, having run international 
businesses both in the UK and overseas.
External appointments: Non-Executive 
Director of WPP plc, Trustee Director of Business 
in the Community, Trustee Director of The 
Leverhulme Trust and President of The Royal 
Horticultural Society. He is also a trustee of 
Grange Park Opera.
Specific contributions to the Company’s 
long-term success: Keith plays an important 
role in Sainsbury’s plan to become First choice for 
food and delivering on our Plan for Better. He has 
an excellent understanding of both sustainability 
and digital, and the ways that technology is 
transforming businesses.
Independent: Yes.
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J Sainsbury plc Annual Report and Financial Statements 2024  71
J Sainsbury plc – Operating Board 2024/25
Simon Roberts
Chief Executive
  See page 68
Bláthnaid Bergin
Chief Financial Officer
  See page 68
Graham Biggart
Chief Transformation & General Merchandise Commercial Officer
Date of appointment: March 2022.
Skills and experience: As Chief Transformation & General Merchandise Commercial Officer, Graham is 
responsible for our strategy and the delivery of our major change programmes across our business, 
in addition to our Supply Chain, Logistics & Fulfilment, and Central Business Services. He is also accountable 
for the commercial performance of our General Merchandise and Clothing businesses; including Argos, 
Habitat and Tu. Graham is the Operating Board Sponsor for Ethnicity. He joined Sainsbury’s in 2015 and has 
led a number of different areas of the business in that time, across commercial, operations and channels, 
including as Commercial Director for Fresh Food & Foodservice and as Commercial Operations Director 
covering Range, Space, Price & Formats in Food, General Merchandise and Clothing, as well as the 
Sainsbury’s Local and Argos Republic of Ireland businesses. Prior to Sainsbury’s, Graham worked at 
McKinsey & Company, and before that at Brunswick Group. Graham is a Non-Executive Director and 
Chair of the Risk & Audit Committee of GS1 UK.
Tim Fallowfield OBE
Company Secretary and Corporate Services Director
Date of appointment: September 2004.
Skills and experience: Tim joined Sainsbury’s in 2001 as Company Secretary, having previously held 
the position of Company Secretary and General Counsel at Exel plc, the global logistics company, now 
part of DHL. Tim is a qualified solicitor and began his career at the international law firm, Clifford 
Chance. In addition to his role as Company Secretary, he is responsible for the Corporate Services 
Division, comprising Legal Services, Data Governance and Information Security, Safety and Insurance, 
and Shareholder Services. He also chairs the Group Safety Committee and the Data Governance 
Committee. Tim is the Operating Board Sponsor for Caring Responsibility and Hidden and Visible 
Physical Disability. Tim was Chairman of the Disability Confident Business Leaders Group, between 
2016 and 2023, which works with government in shaping the disability employment agenda and in 
raising awareness of the benefits of employing disabled people. He was awarded an OBE for services to 
disability awareness in the 2020 New Year Honours List. Tim is a member of the Trustee Board of Save 
the Children and chairs their Audit and Risk Committee. He is a Non-Executive Director of the 
Government Legal Department and Chair of the Sainsbury’s Archive.
Rhian Bartlett
Chief Food Commercial Director
Date of appointment: November 2020.
Skills and experience: Rhian joined the Operating Board in November 2020, having returned 
to Sainsbury’s in 2019 as Director of Fresh Food. She is responsible for delivering the commercial 
performance of Sainsbury’s food business and brands. Rhian is also the Operating Board Sponsor 
for Gender. She has over 20 years’ experience in the retail industry and has held a variety of senior 
commercial roles, including Customer and Digital Director at Screwfix and Director of UK Trading at 
eBay. Rhian’s previous roles at Sainsbury’s include Business Unit Director Fresh Foods and Head of 
Online Merchandising.
Rhian is a Non-Executive Director of Speedy Hire Plc and is a Trustee of GroceryAid.
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72  J Sainsbury plc Annual Report and Financial Statements 2024
Operating Board changes
After five years as an Operating Board member, Jim Brown retired as CEO, Sainsbury’s Bank in March 2024. 
Following Paula Nickolds’ departure from the Operating Board in February 2024, Graham Biggart’s role was expanded to Chief Transformation & 
General Merchandise Commercial Officer, combining the leadership of transformation and commercial performance of Argos and the Group’s 
General Merchandise and Clothing Business. 
After 22 years of service, Tim Fallowfield has confirmed his intention to retire from Sainsbury’s in July 2024. 
Clodagh Moriarty
Chief Retail and Technology Officer
Date of appointment: June 2018.
Skills and experience: Clodagh joined the Operating Board in 2018 and was appointed as Chief Retail 
and Technology Officer in March 2023, combining the leadership of Technology with the Group’s Digital 
and Retail teams. She is responsible for all stores and their operations, as well as Sainsbury’s digital 
offer and strategy, ensuring customers experience an integrated and seamless shopping experience 
across Sainsbury’s, Argos, Tu, Sainsbury’s Bank and Nectar. Clodagh’s previous roles in Sainsbury’s 
include Retail and Digital Director and Chief Digital Officer. Clodagh is the Operating Board Sponsor for 
Wellbeing, ensuring we uphold our colleague mental health and wellbeing commitments across the 
business. Clodagh joined Sainsbury’s as Head of Strategy, following nine years at Bain & Company and, 
during her time with us, has had numerous leadership roles across commercial and channels. She is a 
Non-Executive Director and member of the Remuneration and Nomination and Governance 
Committees of Taylor Wimpey plc.
Prerana Issar
Chief People Officer
Date of appointment: May 2023.
Skills and experience: Prerana joined the Operating Board in May 2023. She is responsible for human 
resources and our people services across the business. Prior to joining Sainsbury’s, Prerana was the 
NHS’s first Chief People Officer and supported the 1.2 million people who work for the NHS to deliver 
critical care for patients, including through the COVID-19 pandemic, the most challenging period of the 
NHS’s history. Before that, Prerana worked at the United Nations World Food Programme as Director of 
Public-Private Partnerships and Chief HR Officer. She is focused on HR delivering commercial impact, 
having started her career at Unilever plc, where she spent 15 years and finishing her time there as Vice 
President of HR for Global Food. Prerana is a trustee on the Marie Curie Board of Trustees.
J Sainsbury plc – Operating Board 2024/25 continued
Mark Given
Chief Marketing Officer
Date of appointment: June 2020.
Skills and experience: Mark has significant experience in customer insight, brand communication 
and digital marketing. Mark joined Sainsbury’s in 2012, becoming Marketing Director in 2017. He was 
appointed Chief Marketing Officer in August 2019 and has responsibility for Marketing & Loyalty across 
the Sainsbury’s, Argos, Tu clothing and Habitat brands. Mark has also been responsible for the Nectar 
Loyalty coalition and the Nectar360 Retail Media business since 2018. In 2021, Mark assumed 
responsibility for all Corporate Responsibility and Sustainability activity, including delivery of our Plan 
for Better targets. Mark is the Operating Board Sponsor for Neurodiversity. Prior to joining Sainsbury’s, 
Mark built his digital skills leading the Priority programme at O2, where he was Head of Sponsorship. 
Before this, Mark worked with key brands at Heineken UK where he was Brand Director. He began his 
career at Procter & Gamble UK before working across Europe on a variety of brands. Mark is currently 
a Council Member of the Incorporated Society of British Advertisers and a Fellow of the Marketing 
Society. He is also a trustee on the Sainsbury’s Archive Charitable Trust board.
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Board leadership and Company purpose
Our new purpose of “We make good food joyful, accessible and 
affordable for everyone, every day” underlines our commitment 
to keep food firmly at the heart of what we do, whilst also 
reflecting the unique role we play for our customers and the 
communities we serve.
Role of the Board
The Board is the principal decision-making body in the Company. It is 
collectively responsible for promoting the long-term success of the business 
for the benefit of its shareholders, achieving this through the creation and 
delivery of sustainable shareholder value. The Board also carefully considers 
its wider stakeholders, including customers, colleagues and suppliers, when 
making decisions. 
  More information on the Board’s engagement with  
its stakeholders can be found on pages 22 to 29
The Board is responsible for setting the strategy of the business and 
overseeing its implementation by management. It is committed to 
delivering on each of the Group’s strategic priorities, which are aligned with 
the Group’s purpose and values. It ensures effective corporate governance, 
succession planning and stakeholder engagement. The Board is also 
responsible for ensuring that effective internal controls and risk 
management systems are in place.
Colleague engagement is critical to the Board, and it monitors culture 
through the Make It Better Together panels, colleague listening and the 
outputs of colleague engagement surveys. The Board and senior 
leaders set the tone from the top and lead by example on the Group’s 
valued behaviours. 
  Further information on colleagues and culture 
can be found on pages 18 to 21
The Board has formally delegated certain governance responsibilities to its 
Board Committees and the Operating Board, as outlined below. During the 
year, the Board reviewed the delegated responsibilities and Terms of 
Reference of each of the Board Committees. 
  Further information can  
be found on page 84
Operating Board 
Matters not specifically reserved for the Board have been delegated to 
the Operating Board, chaired by Simon Roberts. The Operating Board is 
responsible for the day-to-day operation of the business and the execution 
of our strategy, ensuring that this is done in an ethical and sustainable 
manner. During the year, the Operating Board delivered progress against 
our key performance measures across each of the five strategic pillars. 
  Each Operating Board Director has a range of responsibilities,  
as detailed in their biographies on pages 71 to 72
Sainsbury’s Bank Board 
Sainsbury’s Bank plc Board membership comprises an independent Chair, 
four Non-Executive Directors, all of whom are independent, together with 
the Bank’s Chief Executive Officer and Chief Financial Officer. The Bank’s 
Chief Executive Officer is supported by the Sainsbury’s Bank Executive 
Committee and is responsible for the day-to-day management of the 
business and executing its strategy. The Bank’s Chief Executive Officer 
meets regularly with the Chief Financial Officer, bringing the Bank’s 
priorities and perspective to the wider business.
Summary of matters reserved for 
the Board
The Board has adopted a formal schedule of matters reserved for its 
attention, detailing matters that are considered of significance to 
the Group owing to their strategic, financial or reputational 
importance. The schedule of matters reserved for the Board is 
reviewed on an annual basis and approved by the Board. Below 
is a summary of Matters Reserved for the Board:
•	 Group strategy, operating plans, long-term plans and budget
•	 Changes to corporate and capital structure
•	 Major acquisitions, mergers, joint ventures and disposals
•	 Significant capital expenditure and borrowing
•	 Material contracts
•	 Risk management and internal control
•	 Changes to the pension scheme
•	 Financial reporting and disclosures
•	 Review of remuneration policies and share schemes
•	 Dividend policy and payment
  The Matters Reserved for the Board can be found on our website at 
www.about.sainsburys.co.uk.
Evolution of our governance 
framework
In February 2024, we announced our Next Level Sainsbury’s 
strategy. Translating our updated strategy into delivering the 
strategic outcomes will require our existing governance framework 
to evolve. A new decision-making structure, below the Operating 
Board, has been implemented and will be effective for 2024/25. 
The new structure is directly aligned to the strategic outcomes, 
with clear accountability and ownership of deliverables. 
We’re going to build 
on what has driven our 
success since 2020. 
Simon Roberts
Chief Executive
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Board
Operating Board
Board Committees
The Board Committees support the Board in specific areas of its 
responsibilities, as outlined below. The Committee Chairs provide regular 
updates to the Board on Committee meetings and activities.
Corporate Responsibility and Sustainability Committee
•	 Reviews the Plan for Better strategy, monitoring progress against 
key environmental and social sustainability targets and metrics
•	 Undertakes horizon scanning of future social and environmental 
sustainability matters
•	 Monitors business engagement on sustainability and corporate 
responsibility matters
  More information can be found on page 89
Nomination and Governance Committee
•	 Reviews the Board’s size, structure and composition, including the 
recommendation of new appointments to the Board
•	 Monitors balance of skills, knowledge, experience, independence 
and diversity of the Board and its Committees to ensure that they 
remain appropriate
•	 Oversight of succession planning and development plans of the Board 
and senior management
•	 Reviews the Board’s governance framework, including the Group’s 
compliance with applicable laws and regulations
•	 Oversight of annual performance evaluation of the effectiveness 
of the Board and its Committees
•	 Monitors compliance against the UK Corporate Governance Code 
  More information can be found on page 85
Remuneration Committee
•	 Recommends and reviews the Remuneration Policy, ensuring that it 
promotes the delivery of our strategy and the long-term sustainable 
success of the business
•	 Approves remuneration and benefits for the Chair, Executive 
Directors and Operating Board Directors
•	 Approves remuneration principles throughout the business 
  More information can be found on page 99
  The Terms of Reference for these Committees can be  
found on our website at www.about.sainsburys.co.uk.
Audit Committee
•	 Reviews and monitors integrity of financial information prior to 
publication, ensuring that the Annual Report as a whole is fair, 
balanced and understandable
•	 Oversees systems of internal control and risk management
•	 Approves internal and external audit processes
•	 Maintains relationship with auditors
•	 Carries out in-depth reviews of specific risks, ensuring that risks 
are appropriately identified, managed and mitigated
  More information can be found on page 92
Operating Board Committees
The Operating Board Committees support the work of the Operating 
Board through delegated powers, as outlined below. Members of senior 
management provide regular updates from these Committee meetings 
to the Operating Board.
Business Performance Review
•	 Monitors and reviews implementation of the Group’s plans to meet 
budget targets, as set out by the Operating Board
•	 Approves in-year capital expenditure
•	 Monitors business performance with regards to customers, the 
market, product proposition and perceptions of our brand
•	 Monitors and reviews colleague engagement
Group Data Governance Committee
•	 Oversees programmes that deliver compliance with Data Protection, 
Data Security and Payment Card Industry data security standards
•	 Oversees effective information security and risk management 
throughout the business
•	 Provides assurance, with the Group CISO and Director of Data 
Governance, to the Operating Board, Audit Committee and Board
Group Safety Committee
•	 Reviews the safety culture and the robustness of safety management 
systems throughout the business, including food safety, online 
safety and colleague security
•	 Oversees standards for management and monitoring of colleague 
and customer safety
•	 Provides assurance, with the Director of Safety and Insurance, 
to the Operating Board, Audit Committee and Board
•	 Reviews the Group’s safety performance and potential safety risks 
within the business
Plan for Better Steering Committee
•	 Leads operational execution of our Plan for Better strategy
•	 Oversees Plan for Better activities in relation to this strategy to 
ensure delivery
Customer, Commercial and Channels Forum
•	 Leads the development and execution of our customer, commercial 
and channel plans against our strategy
•	 Manages the in-year operating performance of the retail business
Board leadership and Company purpose continued
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Key areas of focus for the Board 
Our Board and Committee 
meetings were held in person and 
remotely during the year, enabling 
agile and effective decision-making. 
The Chair also held regular calls 
between meetings with the 
Non‑Executive Directors. Members 
of the Operating Board, management 
teams and other colleagues attended 
Board meetings to enable improved 
Board dialogue, review performance, 
discuss progress and agree key 
priorities for the short, medium 
and longer term.
Key activities of the Board
The Board has a detailed programme of activities which is agreed 
by the Chair, in conjunction with the Chief Executive and Company 
Secretary, covering operational and financial performance, 
strategy and transformation planning, risk, governance, culture 
and stakeholder matters. This enables consideration and decision-
making which is appropriate for the business, our stakeholders and 
the markets in which we operate. 
  Further information on how the Board has taken the respective views 
of its key stakeholders into account during Board discussions is 
provided in our s.172 statement
A typical Board meeting will comprise the following elements:
•	 Performance reports including Chief Executive overview, Chief 
Financial Officer review and operational performance reports
•	 Deep dive reports into areas of particular strategic importance to 
evaluate progress, provide insight and, where necessary, decide 
on appropriate action
•	 Verbal Committee updates from the Chairs of our Board 
Committees, including the key discussion points and particular 
matters to bring to the Board’s attention
•	 Feedback from shareholder meetings
•	 Updates from our Make It Better Together panel, with further 
context provided by the Non-Executive Directors who attended 
that particular session
•	 Legal, risk and governance updates, including approval of the 
revised governance framework, approval of the Modern Slavery 
Statement and updates and review of material litigation
The table on the following pages sets out the key topics that the 
Board reviewed, discussed and debated during the year. Board 
reviewed, discussed and debated during the year.
Matters considered
Strategy
Outcome
•	 Discussed progress against the strategic plan and the impact of the cost 
of living crisis and inflationary pressures on our customers, colleagues 
and suppliers 
•	 Monitored progress against culture, behaviours, diversity, equity and 
inclusion strategy which supports the long-term planning and future 
direction of the Group
•	 Approved key decisions and outcomes required to finalise the updated 
strategy and purpose announced in February 2024
•	 Reviewed the Operating Board’s investment choices and ways of 
simplifying the Group’s operating model
•	 Held deep dive discussions on the Group’s strategic and 
transformation programmes
•	 Discussed and created relevant action plans for long-term 
strategic challenges
•	 Committed to working with suppliers over the longer term, enabling 
suppliers to invest in their business and build resilience
•	 Concluded a strategic review of the financial services division
  More information can be found on pages 10 to 14
Benefits and consideration
•	 Having a clear, strategic direction for the short, medium and long term 
and understanding our stakeholder expectations is vital for the execution 
of our strategic priorities
•	 Staying connected to our stakeholders has enabled the Board to make 
deliberate decisions on value investment, colleague pay and ensuring the 
longevity of our supply chain
•	 The decisions taken have helped to deliver strong results in the short 
term, but will also enable the Group’s longer term goals
•	 Focus on a multi-year purpose-led organisation will create multiple 
opportunities for commercial and social growth
Stakeholders considered 
•	 Customers
•	 Suppliers
•	 Colleagues
•	 Communities
•	 Shareholders
•	 Regulators
Link to KPIs
•	 Grocery market share performance
•	 Customer satisfaction score
•	 Colleague engagement score
•	 Plan for Better commitment
•	 Retail free cash flow
•	 Return on capital employed
•	 Retail operating cost to sales
•	 Underlying profit before tax
Link to strategy 
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
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Matters considered
Chief Executive Report and 
Financial Updates
Outcome
•	 The Chief Executive and Chief Financial Officer provided an overview 
of the operational and financial performance of the business at 
each meeting
•	 Periodic updates on sales, profit, cash flow, stakeholders and progress 
against KPIs
  More information can be found on page 4
 Benefits and consideration
•	 The Board has delegated authority to the Chief Executive for the 
day-to-day management of the business
•	 Operational and financial updates provide oversight of the business, 
and the impact actions may have on stakeholders
Stakeholders considered
•	 Customers
•	 Colleagues
•	 Shareholders
•	 Suppliers
•	 Communities
 Link to KPIs
•	 Grocery market share performance
•	 Colleague engagement score
•	 Retail free cash flow
•	 Retail operating cost to sales
•	 Customer satisfaction score
•	 Plan for Better commitment
•	 Return on capital employed
•	 Underlying profit before tax
Link to strategy
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
Strategy update: 
“Next Level Sainsbury’s” 
Against a backdrop of continued change in the retail 
industry and increasing importance of environmental 
and social considerations, the Board reviewed the 
Company’s strategy at a number of meetings during the 
year. Dedicated strategy days were also held in July and 
October 2023. 
Focus areas 
The Board discussed the short and long-term goals and 
the choices that the business would need to make to 
achieve them. The main discussion themes included:
•	 Medium and longer-term competitor, customer and 
market trends and the implications for the business
•	 Identifying the appropriate strategic priorities and 
short, medium-and long-term choices required
•	 Challenges to achieving strategic priorities and 
where improvements would need to be made across 
the business, including key investment and 
cost-saving priorities
•	 Cultural change needed for growth
Outcomes 
•	 Updated purpose, strategic outcomes and 
commitments
•	 Colleague engagement plan developed to ensure 
awareness and understanding of the new purpose 
and strategy
•	 Capital Markets Day held in February 2024 to 
announce the new purpose, strategy and commitments 
Next steps 
•	 The Board will receive regular updates on the strategic 
outcomes at every Board meeting
•	 Deep dive updates will be presented at the Strategy 
Review days in July and October 2024
We are a food first, 
people first business.
Simon Roberts
Chief Executive
Board leadership and Company purpose continued
Key areas of focus for the Board continued
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Matters considered
Review of financial position, going 
concern and the viability of the Group
Progress against the long-term plan 
and budget
Review of balance sheet and 
leverage targets
Review of funding and liquidity plans
Outcome
•	 Refreshed capital allocation framework and review of shareholder returns 
and dividend policy
•	 Management of Group financing activities, including debt refinancing 
and pension plans
  More information can be found on page 46
Benefits and consideration
•	 Board oversight supports the strategic direction and long-term viability 
and ensures that future liabilities can be met
Stakeholders considered
•	 Customers
•	 Colleagues
•	 Shareholders
•	 Suppliers
•	 Communities
Link to KPIs
•	 Group market share performance
•	 Retail free cash flow
•	 Retail operating cost to sales
•	 Return on capital employed
•	 Underlying profit before tax
Link to strategy
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
Matters considered
Risk management framework
Updates on principal and 
emerging risks
Risks, including principal risks as 
appropriate, are also discussed through 
the other matters considered
Outcome
•	 Maintained responsibility for the identification and management of risks 
to ensure the successful operation of the business
•	 Identified and monitored principal and emerging risks, including 
economic and political uncertainty, supply chain security and raw 
material availability
•	 Reviewed Audit Committee discussions and decisions to monitor internal 
controls, stress testing and risk mitigation across the business
  More information can be found on page 53
Benefits and consideration
•	 The Board reviews the most significant or principal risks facing the Group
•	 Strengthening the risk and internal control environment is fundamental 
to our governance framework
Stakeholders considered
•	 Customers
•	 Colleagues
•	 Shareholders
•	 Suppliers
•	 Communities
Link to KPIs
•	 Grocery market share performance
•	 Colleague engagement score
•	 Retail free cash flow
•	 Retail operating cost to sales
•	 Customer satisfaction score
•	 Plan for Better commitment
•	 Return on capital employed
•	 Underlying profit before tax
Link to strategy
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
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Matters considered
Culture, diversity and inclusion
Talent, succession and development
Outcome
•	 Committed to further investment into colleague pay for our retail 
colleagues and other enhancements to colleague benefits
•	 Maintained focus on culture and development as a critical enabler of our 
longer-term success
•	 Focused on succession planning across pivotal roles within the business, 
including the change in structure of the Operating Board
•	 Building leadership capability to develop and grow diverse talent and 
strengthen future pipelines through tailored development programmes
•	 Supported the Operating Board in the launch of our new purpose to 
further embed a positive, forward-thinking culture whilst improving 
business outcomes
•	 Received regular updates on colleague engagement reviewing colleague 
feedback from listening groups, the Make It Better Together panel and 
the We’re Listening survey
  More information can be found on page 18
 Benefits and consideration
•	 Understanding what allows the Board to make effective decisions to 
ensure our culture is fit for purpose
•	 Supporting colleagues with leading pay and benefits is a key part of our 
strategy to drive outstanding service
Stakeholders considered
•	 Colleagues
 Link to KPIs
•	 Colleague engagement score
•	 Plan for Better commitment
Link to strategy
•	 First choice for food
Focusing on culture
A healthy corporate culture is 
one in which Sainsbury’s has a 
purpose, values and strategy 
that are respected by its 
stakeholders, and an operating 
environment that encourages 
employees to make a positive 
difference for stakeholders ‘doing 
the right thing’. 
Aligning with purpose, strategy and values 
Our culture comes to life through our three values, Own It, Make It 
Better and Be Human, which remain unchanged. These values 
underpin our purpose and have become a vital part of our culture, 
supporting our growth and success across the Group. They ensure 
that all of our colleagues understand what is most important to us – 
understanding our customers and their needs, working as a team in a 
respectful and supportive way, and showing that when we add up all 
the small things we do, we can make a big difference to the issues 
customers, colleagues, communities and wider society care about. 
Monitoring culture 
The business has a framework of policies and practices in place 
which allow the Board and its Committees to monitor and measure 
culture. These include updates on the outcomes of the We’re 
Listening survey benchmarked against peers, interactions with the 
Make It Better Together panel and regular updates on a broad range 
of risk and business integrity matters, including fraud, compliance, 
bribery, corruption and modern slavery, and standard supplier 
protocols and procedures. Collectively, these updates provide the 
Board with broad insights into day-to-day operations, the practical 
execution of strategy and the culture context in which our 
colleagues work.
Our cultural metrics:
79%
of colleagues who told us 
they are able to be 
themselves at work
71%
of colleagues who told us 
they were happy at work
74% 
of colleagues who told us 
they were treated 
respectfully at work
67%
of colleagues who told 
us they have good 
opportunities to learn 
and grow
Board leadership and Company purpose continued
Key areas of focus for the Board continued
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Matters considered
Oversight of our Plan for Better strategy 
by the Corporate Responsibility and 
Sustainability Committee
Outcome
•	 Renewed partnership with Fairtrade to deliver living wage to banana 
workers, three years ahead of the IHD industry commitment
•	 Continued price investment making good food affordable for everyone
•	 Approved the Group’s Science Based Targets initiative submission and net 
zero transition planning
•	 Launch of our Smart Charge: new ultra-rapid service to build confidence 
in public EV charging
  More information can be found on page 15
Benefits and consideration
•	 Our commitment to our customers, colleagues and the communities we 
serve are reflected in our Plan for Better strategy which underpins our 
four strategic outcomes
•	 Building the resilience of our business and changing the way we work 
with partners and suppliers for people and planet
Stakeholders considered
•	 Customers
•	 Colleagues
•	 Shareholders
•	 Suppliers
•	 Communities
•	 NGOs
Link to KPIs
•	 Grocery market share performance
•	 Plan for Better commitment
•	 Colleague engagement
Link to strategy
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
Matters considered
Investor relations, investor views 
and key market updates
Outcome
•	 Understanding of investors’ strategic and performance expectations 
of Sainsbury’s
•	 Visibility of market conditions, share price performance and 
future outlook
•	 Feedback on investor meetings held during the year
•	 Updated investors on Next Level Sainsbury’s strategy
•	 Announcement of share buyback programme
  More information can be found on page 25
Benefits and consideration
•	 Ensures shareholder sentiment is understood and considered when 
making decisions
Stakeholders considered
•	 Shareholders
 Link to KPIs
•	 Grocery market share performance
•	 Retail free cash flow
•	 Retail operating cost to sales 
•	 Customer satisfaction score
•	 Plan for Better commitment
•	 Return on capital employed
•	 Underlying profit before tax
Link to strategy
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
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Matters considered
Governance matters
Outcome
•	 Updates from the Chairs of the Committees
•	 Review of audit and governance reform processes
•	 Discussed the results of the Board effectiveness review and progress 
against actions
•	 Legal and governance updates, including material litigation and 
Modern Slavery
•	 Review and approval of statutory reporting and shareholder 
documentation
•	 Ensured continued compliance with the UK Corporate Governance Code 
2018, as outlined on page 66
  More information can be found on page 66 to 121
Benefits and consideration
•	 An important part of the Board’s role is the oversight of the Group’s 
activities, ensuring that the Group is properly governed with the 
required resources
Stakeholders considered
•	 Colleagues
•	 Shareholders
 Link to KPIs
•	 Colleague engagement score
•	 Customer satisfaction score
•	 Plan for Better commitment
Link to strategy
•	 First choice for food
•	 Loyalty everyone loves
•	 More Argos, more often
•	 Save and invest to win
Board leadership and Company purpose continued
Key areas of focus for the Board continued
Matters considered
Safety updates focusing on people 
and food safety
Outcome
•	 Review of major safety incidents and the safety strategic plan, including 
updates on trends and the Group’s safety culture
  More information can be found on page 19
Benefits and consideration
•	 The Board places significant importance on looking after the safety of 
colleagues, customers and anyone else impacted by our business
Stakeholders considered
•	 Customers
•	 Colleagues
•	 Suppliers
 Link to KPIs
•	 Colleague engagement score
•	 Customer satisfaction score
•	 Plan for Better commitment
 Link to strategy
•	 First choice for food
•	 More Argos, more often
•	 Save and invest to win
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Composition, succession and evaluation
Director development
Induction
We have a comprehensive and tailored induction programme in place for 
Directors when they join the Board to ensure their smooth transition and 
enable them to gain an understanding of all major aspects of the business. 
This includes an introduction to our purpose, vision, strategy, culture and 
values, alongside our governance framework, sustainability strategy and 
the opportunities and challenges facing the sector.
When joining the Board, a new Non-Executive Director typically meets 
individually with each Board and Operating Board member, with senior 
leadership from key areas of the business to gain an insight into their 
respective areas of responsibility, and with key advisers. The Company 
The Directors’ induction process 
1 
Understanding the business
2 
Understanding the 
sector and environment
3 
Meeting the Sainsbury’s internal 
team and advisers
4 
Visiting Group operations
•	 Business strategy, purpose and vision
•	 Overview of each business area and its 
opportunities
•	 Operating plans, current KPIs and targets
•	 Key business relationships
•	 Board and governance procedures, including 
Directors’ duties
•	 Board effectiveness reviews and actions
•	 Matters relevant to the Board Committees 
they join
•	 Recent Board and Committee papers 
and minutes
•	 Key people and succession plans
•	 Remuneration and reward across the business
•	 Finance, Treasury and Tax overviews
•	 Risk profile and approach
•	 Internal audit, risk and internal controls
•	 The market and 
competitors
•	 Customer trends
•	 Consumer and 
regulatory environment, 
including Market Abuse 
Regulations
•	 Brand perception 
and reputation
•	 Analyst and investor 
perspectives
•	 Key stakeholders’ views
•	 Directors	
•	 Committee Chairs	
•	 Company Secretary and 
Corporate Services Director
•	 Members of the Operating Board
•	 Senior leadership across 
the business
•	 Members of the external 
audit team
•	 Remuneration consultants
•	 Brokers
•	 Store visits
•	 Distribution centres
•	 Store support centre
Secretary and Corporate Services Director briefs new Directors on Company 
policies, Board and Committee procedures, and core governance practice, 
which includes Directors’ duties and Market Abuse Regulations. They also 
receive induction materials, including recent Board and Committee papers 
and minutes, strategy papers, investor presentations, Matters Reserved for 
the Board and the Board Committees’ Terms of Reference. New Directors 
visit stores, depots and other business locations to help them gain a broader 
understanding of the business. Director inductions are ongoing processes 
over a number of years, during which they will cover the areas in the 
table below.
Continuing professional development and training
Non-Executive Directors continue to learn about the business by meeting 
with senior leadership, colleagues, suppliers and other key stakeholders. All 
of the Non-Executive Directors continue to engage with different aspects of 
the business to support their ongoing development. 
The Board believes that good decision-making is enabled by a deep 
understanding of the Group’s operations and people. During the course 
of the year, Directors receive training and presentations to keep their 
knowledge current and enhance their experience. To ensure the Board 
updates and refreshes its skills and knowledge, we have a programme 
to support Directors’ training and development requirements in 
relation to governance, investor expectations and regulatory impacts. 
This programme includes regular presentations from management on 
relevant governance matters.
The Board strategy reviews took place in July and October and included 
updates from our advisers on medium and longer-term competitor, 
customer and market trends, the impact of current economic and political 
situations, and views within the supermarket and general merchandise 
sectors. These updates were a key part of the Board’s strategy discussion 
process and enabled the Board to identify the appropriate strategic 
priorities, the challenges to achieving these priorities and the cultural 
change needed for growth. Further information on the Next Level 
Sainsbury’s strategy can be found on pages 10 to 14.
The programme of activities for the Board includes store visits and dinners 
with external attendees, including key stakeholders. This builds the 
Directors’ understanding and knowledge of the wider business and the 
macro environment in which the Group operates.
The Audit and Remuneration Committees received updates on relevant 
accounting and remuneration developments, trends and changing 
disclosure requirements from management. The Corporate Responsibility 
and Sustainability Committee received stakeholder and regulatory updates 
on ESG matters from management. More information can be found on pages 
89, 92 and 99.
The Board and Committees received annual updates on compliance with 
the Market Abuse Regulation, the Modern Slavery Act, Task Force on 
Climate-related Financial Disclosures, the 2018 Corporate Governance 
Code and Directors’ responsibilities under Section 172 of the Companies Act. 
In addition, the Board will receive training on key topics which are relevant 
to the implementation of strategy and changing regulation. Key training 
and development activities for 2023/24 are detailed on the next page. 
Directors have access to advice from the Company Secretary and 
independent professional advice is available at the Company’s expense, 
if necessary, in relation to fulfilling their duties and responsibilities. 
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82  J Sainsbury plc Annual Report and Financial Statements 2024
2023/24 training and development activities
•	 Internal Controls programme updates at every Audit 
Committee meeting
•	 Updates on the proposed UK Corporate Governance and 
Audit reforms
•	 An overview of the NIST Cybersecurity Framework and examples 
of the Group’s compliance with the framework 
•	 Sustainability updates, including an update from Dame Sara 
Thornton on Modern Slavery evolving risks and key areas of 
focus for 2024/25
•	 Presentation from external advisers on:
	– The findings of an investor perception study conducted by 
an external party
	– Sell-side perspective on UK grocery; and
	– Transformation opportunities and challenges facing 
retailers globally
Board evaluation
In line with best practice, the Board’s effectiveness is reviewed on an annual 
basis through a formal performance evaluation, including an assessment of 
the Board and its Committees. An external evaluator conducts the review 
every third year, and, in the two intervening years, this is carried out by the 
Company Secretary and Corporate Services Director to ensure continuity 
over the three-year cycle. The last external evaluation was carried out by 
Clare Chalmers, an experienced independent provider of board effectiveness 
reviews, from November 2022 to March 2023. 
This year’s internal evaluation was conducted from December 2023 to 
March 2024 and was led by the Company Secretary and Corporate Services 
Director, who met with each Director on an individual basis to carry out the 
evaluation. The review explored the key areas of focus set out below and 
themes that arose for action in the 2022/23 external evaluation.
The process was designed to assess the strengths of the Board and to raise 
challenges and opportunities for improvement. The meeting agenda was 
sent to each attendee before their individual meeting. Their discussions 
remained confidential and no views were attributed to any individual in 
the final report.
The key areas of focus included: the effectiveness, role and priorities of the 
Board and its Committees with particular reference to the development of 
the new purpose and strategy; the Board’s composition, skills, diversity, 
culture and succession planning; the leadership of the Board and the 
business; oversight of financial performance; decision-making and risk 
management; stakeholder engagement; talent management; and the 
Board’s focus on ESG. In addition, the Directors were asked to give their 
views on key focus areas for the Board in 2024/25. Each Director was given 
the opportunity to raise their own additional points.
Following the individual discussions, the Company Secretary and Corporate 
Services Director discussed the conclusions (including any feedback with 
individual Directors) with the Chair and then presented a final written report 
to the Nomination and Governance Committee. A meeting was held with 
the Board to discuss the findings and agree the key actions. Each of the 
Committee Chairs received specific feedback on the effectiveness of the 
relevant Committee for their consideration.
Findings of the 2023/24 review
The report identified a number of strengths of the Board including:
•	 The Board continues to be effective, operating a collaborative approached 
to the development of the updated strategy 
•	 The Board has open discussions before major decisions are taken, and the 
pace and progress of decision-making has been appropriate, with robust 
iteration between meetings to maintain momentum
•	 The external input provided by key advisers was well received by 
the Board
•	 The Chair is a highly effective leader and has developed strong 
relationships and trust with the Non-Executive Directors
•	 The Executive Directors keep the Board well informed of key issues 
arising, provide strong leadership
•	 The Non-Executive Directors are highly engaged and provide a good level 
of challenge and support to management
The review identified some opportunities for the Board, including the 
following key priorities:
•	 Board focus on strategy: updates on strategic outcomes to be provided at 
each meeting of the Board with scheduled deep dives, including updates 
against key milestones, incorporated into the forward agenda 
•	 Colleague engagement: Non-Executive Directors to meet with 
high‑potential colleagues, ideally in a store environment 
•	 Skills and experience of the Board and Committees: skills matrix 
to be reviewed and top five skills identified
The Board considered all of the recommendations contained in the report. 
The Board has developed an action plan which will be reviewed on a regular 
basis by the Nomination and Governance Committee and also identified 
development areas for the Board, which are detailed on page 83. The Board 
reviews progress against the agreed actions regularly during the year. 
Any Committee-specific findings and action points will be overseen by 
each Committee Chair, with consideration of the overall Board findings 
which are deemed relevant to the Committee’s work.
In accordance with the 2018 Corporate Governance Code, the findings of 
the review of the Chair were shared with the Senior Independent Director 
respectively. The Senior Independent Director met with the Chair to review 
this feedback. The review concluded that the Board was well led by the Chair 
and the Directors were very satisfied with the Chair’s current performance.
Board evaluation cycle
A combination of Board 
evaluation and Director 
appraisal
Progress and actions 
implemented during 
2023/24
Agreed actions for 
2024/25 and beyond
Year 2 
Internally 
facilitated review
Year 3 
Internally 
facilitated review
Year 1
Independent  
and externally 
facilitated review
Composition, succession and evaluation continued
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Key areas of focus from 2022/23 review
Progress and actions implemented during 2023/24
Board focus on strategy
Continued focus on the Group’s financial services strategy by undertaking a 
review of Sainsbury’s Bank.
A strategic review of the Group’s financial services division was completed 
during the year, concluding in a decision to carry out a phased withdrawal 
from the core Bank business. 
Continued professional development
Continue to use third-party experts to both upskill Directors and to challenge 
and enhance discussions.
Third-party views were included at various points during the strategy 
preparation, the strategy days and at the Corporate Responsibility and 
Sustainability Committee. Positive feedback was received from the Directors 
on the relevance and quality of these presentations.
Performance 
Incorporate regular updates on operational efficiency, cost savings 
and productivity.
The Board received regular updates on these topics as part of the update on 
the Save to Invest strategic priority.
Colleague engagement
Provide greater visibility of high-potential senior management below 
Operating Board.
The Board were provided with regular updates from the Operating Board 
and key members of their teams during the year. This has been identified as 
an area of continued focus for 2024/25.
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Division of responsibilities
How the Board operates
The Board and its Committees have a forward programme of meetings to ensure that 
sufficient time is allocated to each key area and the Board’s time is used effectively. 
There is flexibility for items to be added to each agenda, which enables the Board to 
focus on key matters relating to the business at the right time.
Our Board comprises the Chair, two Executive Directors and six independent Non-Executive Directors. Our Board members’ responsibilities 
are listed below and more information on their specific contributions can be found in their biographies on pages 68 to 70.
Chair
Martin Scicluna
•	 	Leading the Board and ensuring its effectiveness in all aspects 
of its role
•	 	Promoting the highest standards of corporate governance
•	 	Ensuring that the Board is aware of the views of shareholders 
and other stakeholders
•	 	Promoting a culture of openness and debate in the boardroom and 
constructive relations between Executive and Non-Executive Directors
Independent Non-Executive Directors
Jo Bertram
Jo Harlow
Adrian Hennah
Tanuj Kapilashrami
Keith Weed CBE
•	 	Bringing an external perspective, independent judgement and 
objectivity to the Board’s deliberations and decision-making
•	 	Supporting and constructively challenging the Executive Directors 
and senior management, holding them to account and offering 
specialist advice using their wide and varied experience
•	 	Monitoring delivery of the agreed strategy within the risk 
management framework set by the Board
Company Secretary 
Tim Fallowfield OBE
(retiring with effect from 5 July 2024)
Nick Grant
(appointed with effect from 7 July 2024)
•	 	Advising and assisting the Board and the Chair, particularly in 
relation to governance, Board evaluations, induction, training 
and formulating the agenda for Board meetings
•	 	Ensuring that Board procedures and the governance framework 
are effective
•	 	Ensuring the Board receives accurate, timely and clear information 
and is consulted on all matters important to it
Chief Executive
Simon Roberts
•	 	Leading the day-to-day management of the business and 
executing the strategy agreed by the Board
•	 	Proposing strategies, business plans and policies to the Board
•	 	Ensuring effective implementation of the Board’s decisions
•	 	Leading, motivating and monitoring performance of the 
Company’s senior management
•	 	Creating a framework of strategy, values, culture, performance 
management and objectives to ensure the successful delivery of 
results for the business
•	 	Maintaining an effective framework of internal controls and 
risk management
Chief Financial Officer 
Bláthnaid Bergin
•	 	Supporting the Chief Executive in developing and 
implementing strategy
•	 	Overseeing the day-to-day financial activities and the financial 
performance of the business
•	 	Together with the Chief Executive, ensuring that financial policies 
and practices set by the Board are adopted at all levels of the business
•	 Oversight of key financial functions, including Pensions, Tax, Treasury 
and Internal Controls
Senior Independent Director
Brian Cassin
•	 	Acting as a sounding board for the Chair and as an intermediary for 
the other Directors when necessary
•	 	Being available to meet with shareholders and representative bodies 
as required
•	 	Leading the annual appraisal and review of the performance of 
the Chair
During the year, the Chair and Non-Executive Directors met without the 
Executive Directors being present. The Chair held regular and informal calls 
between Board meetings with the Non-Executive Directors to consider their 
views and to enable thorough preparation for Board discussions. In addition, 
the Senior Independent Director held discussions with the Non-Executive 
Directors without the Executive Directors or the Chair being present.
Directors were kept informed of the key discussions and decisions made at 
each of the four principal Committees – Audit, Nomination and Governance, 
Remuneration, and Corporate Responsibility and Sustainability. The Chair of 
each Committee provided a detailed summary at the Board meeting 
following the relevant Committee meeting.
In the rare event that a Director is unable to attend a Board meeting, 
the Chair will meet with the relevant Director in advance, so that their 
comments and inputs can be considered. Following the meeting, the 
Chair will provide an update to them on the outcomes of the discussions.
The table on page 67 shows the attendance of Directors at scheduled 
Board meetings. The Board held eight scheduled meetings during the year, 
together with additional unscheduled meetings which were well attended 
by all Directors.
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Nomination and Governance Committee Report
Principal role and responsibilities
The Nomination and Governance Committee is responsible for:
•	 Reviewing the structure, size and composition of the Board 
and its Committees, taking into account skills, knowledge, 
experience and diversity and making recommendations to 
the Board for any changes
•	 Formulating plans for succession at Board and senior 
management levels, taking into account the challenges and 
opportunities facing the business and the skills and expertise 
needed to ensure the long-term success of the Company
•	 Reviewing diversity, equity and inclusion across the business
•	 Reviewing and approving any changes to the Board’s governance 
framework, including monitoring compliance with applicable 
legal, regulatory and listing requirements
•	 Assessing the Company’s compliance with the 2018 UK Corporate 
Governance Code
•	 Oversight of the Board and Committee evaluation process, 
including review of progress against identified actions
•	 Conducting an effectiveness review of Non-Executive Director 
time commitments, independence and the Directors’ conflicts 
of interests
  The Committee’s Terms of Reference, which are reviewed annually, are 
available on the Company’s website www.about.sainsburys.co.uk.
Key actions from 2023/24
•	 Reviewed progress against the Board evaluation action plan
•	 Completed the annual evaluation of the Board and its 
Committees, identifying actions for implementation in 2024/25
•	 Reviewed and approved the Directors’ register of interests
•	 Recommended to the Board that all of the Directors stand for 
re-election at the AGM
•	 Reviewed and approved talent and succession planning for 
Operating Board and senior management
•	 Approved the revised Board Diversity policy
•	 Received updates on the revised 2024 UK Corporate 
Governance Code
Priorities for next year
•	 Continued oversight of the business’s diversity, equity and 
inclusion strategy
•	 Implementation of actions arising from the Board evaluation 
in 2023/24
•	 Review of talent and succession planning for senior management
•	 Review of governance framework to align with 2024 UK Corporate 
Governance Code
Dear Shareholder
On behalf of the Board, I am pleased to present the Nomination and 
Governance Committee’s report for 2023/24, which describes the 
Committee’s role and responsibilities, as well as our activities and areas 
of focus during the year. The development and execution of our long term 
strategic objectives, embedding of our purpose and culture and promotion 
of the interests of our stakeholders are all dependent upon effective 
leadership at both Board and executive level. The Committee plays a 
significant role in ensuring the Board is sufficiently diverse and has the 
appropriate balance of skills, knowledge, experience, and background to 
provide the breadth, depth, diversity of thinking and perspective needed 
to support our strategy and deliver our purpose. 
The Committee has a key role in supporting the Board with succession 
planning, reviewing Board composition and promoting diversity, equity and 
inclusion. We seek to balance the composition and tenure of the Board and 
that of its Committees, and to refresh them over time. This enables the 
Board to benefit from the experience of longer-serving Directors and the 
fresh perspectives and insights from newer appointees. 
To support the Board succession planning process, a skills matrix is regularly 
reviewed to ensure the Board and its Committees have and maintain the 
skills required to deliver the strategy and objectives in the longer term. This 
also identifies the skills and experience that may potentially be lost with a 
retiring Non-Executive Director. The matrix shown on page 67 demonstrates 
the broad diversity and experience of the Board.
The Committee also received comprehensive updates during the year on 
talent and succession planning and the revised people strategy, which is 
aligned to the implementation of our Next Level Sainsbury’s strategy. 
The Board continues to make good progress against its diversity, equity and 
inclusion strategy, and we are fully compliant with the requirements of the 
Parker Review on ethnic diversity and the diversity targets outlined in the 
Hampton-Alexander Review. I am proud of the continued progress we have 
made to reach gender balance across our senior leadership; four of our nine 
Board Directors and 50 per cent of our Operating Board members are 
women. During the year, the Committee reviewed the changes to the Listing 
Rules regarding diversity and we have increased our disclosures on ethnic 
and gender diversity amongst our employees in this year’s Annual Report in 
accordance with the new requirements. I am pleased to confirm 
full compliance.
In March 2023, the Committee’s role was extended to governance matters, 
including the annual Board evaluation and oversight of the Governance 
framework. I am pleased to report that the Board and its Committees have 
been found to be effective and any identified actions for improvement will 
be implemented in 2024/25. 
Martin Scicluna
Chair
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The Committee has followed the above procedure for all recent 
appointments to the Board.
Identify
The Committee discusses the overall skill sets of the 
Board and Operating Board to agree a detailed job 
specification, skill set and preferred attributes for the 
appointee. A thorough review of potential candidates 
is undertaken, resulting in a diverse long list of 
external and internal candidates from a broad range 
of backgrounds. The Committee will then shortlist a 
number of candidates.
Interview
The Chair and several of the Directors will meet with 
the shortlisted candidates who confirmed their 
interest in the role. Following the interviews, the 
Nomination and Governance Committee members  
will meet to discuss feedback.
Select
The Committee will discuss and approve a final 
selection of candidates. Once the final candidate is 
identified, the Committee will recommend to the 
Board that the individual be appointed to the Board.
Appoint
The Board will review the Committee’s 
recommendation to appoint the individual 
to the Board.
Time commitment and conflicts of interest 
Prior to appointment, each prospective Non-Executive Director confirms 
that they will have sufficient time available to be able to discharge their 
responsibilities effectively and that they have no conflicts of interest. 
This is discussed by the Board before any appointment is made.
In addition, the Board reviews and approves requests by Directors wishing 
to undertake new external responsibilities or directorships, considering both 
the time commitments involved and any potential conflicts. The conflicts of 
interest register is reviewed annually to ensure it is up to date and that there 
are no new conflicts to consider. No changes were recorded during the year 
that would impact the independence of any of the Directors.
The Board supports Executive Directors having a non-executive directorship 
role as part of their continuing development, provided that they have sufficient 
time to balance their commitments to the business with any external role. 
Subject to Board approval, each Executive Director may hold one 
Non‑Executive Director position. Whilst recognising the benefits of 
Non-Executive Directors having varied and broad experiences, the Board 
keeps in mind investor guidance and reviews the commitments of each 
Director annually.
Throughout the year, all Directors have demonstrated high levels of 
availability and responsiveness for additional meetings and discussions 
where these have been required. The Board remains confident that 
individual members continue to devote sufficient time to undertake their 
responsibilities effectively.
Board effectiveness
The Board and senior management set the tone from the top and lead by 
example through effective management and good stewardship. 
Independence 
The Non-Executive Directors provide a strong independent element to the 
Board and a solid foundation for good corporate governance, fulfilling the 
vital role of corporate accountability. The Committee formally reviews the 
independence of each of our Non-Executive Directors at least annually. The 
Committee is of the opinion that each of the current Non-Executive Directors 
continues to be independent in character and judgement in line with the 
definition set out in the Code. In assessing each Director’s independence, 
the Committee concluded that each provides objective challenge, strategic 
guidance and holds management to account. 
Committee governance
The Committee consists of the Chair of the Board and the six Non-Executive 
Directors, all of whom are independent. The Chair of the Board is also the 
Chair of the Committee, and the Company Secretary and Corporate Services 
Director or their nominee acts as the Secretary of the Committee.
The Chief Executive, Chief Financial Officer and Deputy Company Secretary 
attend meetings by invitation.
The Committee held one scheduled meeting in the year and one scheduled 
meeting immediately following year-end. Attendance at the scheduled 
Nomination and Governance Committee meetings can be found on page 67.
Succession planning
Talent development
The Committee plays an important role in overseeing the development 
of a diverse pipeline for succession to senior management roles across 
immediate, short and longer-term timescales. Succession planning at 
executive and senior management level continues to be a priority and 
throughout the year the Committee monitored the development of future 
business leaders and the available pool of talent within the Group to 
strengthen our diverse management pipeline. This is essential to mitigating 
people risk, ensuring a continuous level of quality in management and that 
we have the required capability to deliver. This review includes progress 
against the strengthening of role profiles and development plans for 
high-potential colleagues. 
During the year, we announced changes to our Operating Board following 
the departure of Paula Nickolds in February 2024 and the retirement of Jim 
Brown in March 2024. Tim Fallowfield, our Corporate Services Director and 
Company Secretary, has confirmed his intention to retire after the AGM in 
2024. The decision was taken to create a smaller Operating Board, with a 
simpler structure for the leadership team. Further information on the 
changes to the Operating Board can be found on page 72.
We recognise the importance of developing our people, and the talent 
pipeline within our business continues to be a key focus for the Committee. 
Our senior leadership population is a source of future Operating Board 
talent, with six members of our Operating Board, Rhian Bartlett, Bláthnaid 
Bergin, Graham Biggart, Tim Fallowfield, Mark Given and Clodagh Moriarty 
progressing through this route. 
Our Leadership Acceleration Programme, Leading Together and Leading 
Steps Up programmes are key investments we continue to make into 
developing our senior leadership. 
Appointments to the Board
The Nomination and Governance Committee has a formal, rigorous and 
transparent procedure for the appointment of new Directors to the Board. 
When the need to appoint a Director is identified, for instance when a 
Director is approaching the end of their ninth year on the Board, the 
Committee reviews the experience, skills and knowledge required, taking 
into account the Board’s skills matrix, existing composition and the relevant 
experience and understanding of our stakeholder groups. We engage 
executive search consultants to develop a diverse list of possible candidates 
who meet the desired specification. Suitable candidates are then interviewed 
by Committee members. The process is led by the Chair of the Board, who 
receives support from the Company Secretary and Corporate Services 
Director and the Directors as appropriate.
Careful consideration is given to ensure that proposed appointees have 
enough time available to devote to the role and that the balance of skills, 
knowledge and experience on the Board with regard to experience and 
understanding of our stakeholder groups is maintained.
When the Nomination and Governance Committee has identified a suitable 
candidate, it makes a recommendation to the Board, enabling the Board to 
make the final decision.
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Annual election and re-election
Annually, the Committee considers and recommends to the Board the 
re-election of Directors by shareholders at the AGM. This is supported by 
each Director’s individual assessment undertaken as part of the annual 
Board evaluation process. The Committee concluded that there were no 
reasons identified to prevent any Director from being recommended for 
re-election at the 2024 AGM. 
Board evaluation 
The Committee oversees the Board evaluation process. During the year, 
the Committee reviewed the progress of the actions identified through 
the 2022/23 Board evaluation and reviewed the proposed approach to the 
2023/24 evaluation of the Board, Committees and Directors, considering the 
key themes and focus of the review. An internal review of the Committee’s 
effectiveness was conducted during the year and it found that the 
Committee continued to be effective. Full details of the Board evaluation 
are on pages 82 to 83.
Diversity, equity and inclusion
The Board and Committee continue to promote the importance of diversity, 
equity and inclusion across the business. We are committed to being a truly 
inclusive retailer where every single one of our colleagues is treated fairly 
and with respect and can fulfil their potential. We want our customers to 
feel welcome when they shop with us. We embrace and encourage diversity, 
inclusion and equity and aim to reflect the diverse communities we serve. 
Simon Roberts and the Operating Board provide clear and committed 
leadership and accountability of our inclusion agenda, with members of the 
Operating Board acting as sponsors across wellbeing, diversity and inclusion 
and our Colleague Networks. The governance of diversity, equity and 
inclusion is a regular part of the Operating Board agenda to ensure ongoing 
progress and focus. Further information on our Colleague Networks can be 
found on page 20.
To ensure sustained improvement, we continue to look at focused initiatives, 
culture and accountability through aspirational targets. In 2021, we set 
stretching targets to take us to 2024, covering more of our talent pipeline 
and Black representation specifically. We set a target of 50 per cent female, 
12 per cent Ethnically Diverse and 3 per cent Black representation at senior 
management levela). Importantly, these targets form part of our long-term 
incentives for management. We report on our progress against these targets 
twice a year and further information is available on our website www.about.
sainsburys.co.uk/sustainability/better-for-everyone/diversity-and-inclusion. 
We will be setting our new gender and ethnicity targets to further increase 
diverse representation during 2024.
The Board receives regular updates on our inclusion initiatives and the 
Board, Corporate Responsibility and Sustainability Committee and 
Nomination and Governance Committee receive detailed presentations 
throughout the year on our inclusion priorities and the progress we are 
making. The Remuneration Committee also reviewed and approved the 
Ethnicity and Gender Pay Report which can be found on our website 
www.about.sainsburys.co.uk/making-a-difference/gender-pay-gap.
Board diversity policy
We promote diversity on our Board and believe there is good balance 
amongst our Executive and Non-Executive Directors, with extensive, 
wide-ranging experience of retail and other consumer-facing businesses 
and varying length of service. Our Non-Executive Directors have other highly 
relevant skills derived from serving in a range of major executive and 
non-executive positions throughout their careers and a blend of cognitive, 
personal strengths and backgrounds.
We are keen to ensure that Board membership reflects diversity in its 
broadest sense, our colleague base and the communities in which we serve. 
The Board’s approach to its own diversity is as follows:
Board diversity objectives
The Board aims to maintain a level of at least 40 per cent female representation 
on the Board and senior management1. It is recognised that there may be 
periods of change on the Board when this number may be smaller while 
the Board is refreshed. However, it is the Board’s longer-term intention to 
maintain this balance.
The Board supports the recommendations set out in the Parker Review and 
intends to maintain at least one Director who identifies as ethnically diverse.
Four of our nine Board Directors are women (44 per cent) and one identifies 
as ethnically diverse. In making its recommendations to the Board, the 
Committee has due regard to the 2018 Corporate Governance Code and 
other best practice and will consider the balance of skills, experience, 
independence and knowledge of the Board, its diversity in the broadest 
sense, including gender and ethnicity, how the Board works together as 
a team and other factors relevant to its effectiveness.
The Board continues to review the development of the pipeline of both 
ethnically diverse and female senior management within the business. 
Four of the eight members of our Operating Board are women and one 
member identifies as ethnically diverse. More information on the Group’s 
diversity and inclusion strategy can be found on pages 19 to 21.
The Board supports and encourages initiatives that strengthen the pipeline 
of talent in the Company including:
•	 A comprehensive talent management review is presented and discussed 
by the Board
•	 Highly personalised plans and initiatives are developed for high-potential 
colleagues to broaden their skill sets and experience to prepare them for 
future senior roles; for example, through boardroom exposure, and 
non-executive and trustee roles outside the business
•	 Senior leadership mentoring schemes sponsored by Board and Operating 
Board members
Monitoring and reporting
The Nomination and Governance Committee is responsible for ensuring that 
the Board has the right balance of skills, experience and knowledge and 
there is a diverse pipeline for succession for key leadership positions in the 
Group in the longer term. In accordance with the Committee’s Terms of 
Reference, the Committee regularly reviews Board composition, succession 
planning, talent development and the broader aspects of diversity.
a)	
The definition of ‘senior management’ in the 2018 Corporate 
Governance Code should be the Executive Committee or the first layer 
of management below Board level, including the Company Secretary. 
However, with such a large workforce, we believe including our top 
230 senior leadership in the scope of our targets ensures that we are 
focused on improving diversity in all of our most significant leadership 
positions and developing our pipeline of talent. Our top 230 lead large 
teams and are critical role models in the organisation, playing a vital 
role in shaping the inclusive culture that we are working hard to create. 
We want all of our colleagues to see visible and diverse leaders in every 
part of the business.
Board Diversity targets
The Board is committed to promoting the importance of diversity, 
equity and inclusion across our business. As at 2 March 2024 (the 
reference date), the Company has complied with the Board diversity 
targets detailed in Listing Rule 9.8.6R(9), specifically:
•	 At least 40 per cent of the Board are women
•	 At least one of the senior Board positions (Chair, Chief Executive, 
Senior Independent Director or Chief Financial Officer) is a woman
•	 At least one member of the Board is from a minority 
ethnic background
There have been no changes to the Board between the reference 
date and the date on which this Annual Report is approved.
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Diversity, equity and inclusion continued
Reporting table on sex representation
Number of  
Board Members
Percentage  
of the Board
Number of senior 
positions on the Board 
(Chair, CEO, SID, CFO)
Number 
in executive
 management a )
Percentage 
of executive 
management
Men
5
56%
3
4
50%
Women
4
44%
1
4
50%
Not specified/ prefer not to say
0
0
0
0
0
a)	  Executive management means the Operating Board.
Reporting table on ethnicity representation 
Number of 
Board Members
Percentage 
of the Board
Number of senior 
positions on the Board 
(Chair, CEO, SID, CFO)
Number 
in executive
 management a)
Percentage 
of executive 
management
White British (or other White including 
minority‑white groups)
7
77.8
4
8
88.9
Mixed/Multiple Ethnic Groups
0
0
0
0
0
Asian/Asian British
1
11.1
0
1
11.1
Black/African/Caribbean/Black British
0
0
0
0
0
Other Ethnic Groups, including Arab
0
0
0
0
0
Not specified/ prefer not to say
1
11.1
0
0
0
a)	  Executive management means the Operating Board. 
Our diversity data contained in the above tables was self-reported by the Board and Operating Board during onboarding and/or through our internal human 
resource management system. 
We encourage all colleagues to self-report information such as gender, gender identity, ethnicity, age, sexual orientation and disability, whilst also including 
a ‘prefer not to say’ option.
Nomination and Governance Committee Report continued
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Corporate Responsibility and Sustainability Committee Report
Dear Shareholder
It has been a busy year 
for the Committee as we 
continue to deliver against 
our sustainability agenda. 
As a Committee, we are 
passionate in overseeing the 
implementation of our Plan 
for Better strategy across the 
Group aligned to our purpose, 
strategy and valued behaviours.
I am delighted that we are taking our plan to the next level, playing a leading 
role in creating a more sustainable food system in the UK to make good food 
available for everyone.
We launched Plan for Better in 2021, focusing on three key pillars: Better for 
You, Better for the Planet, and Better for Everyone. This strategy provides the 
Committee with a clear set of focus areas which we prioritise for action.
The Committee oversees the governance of our sustainability plan, focusing 
on environmental and social strategy, as well as stakeholder engagement 
with our customers, colleagues, suppliers, shareholders, communities and 
government. We firmly believe that we have a responsibility to operate and 
promote sustainable business practices with all of our stakeholders. Regular 
engagement with our stakeholders develops our understanding of key issues 
and is pivotal to the Committee’s decision-making. Further information on 
how we have engaged with key stakeholders can be found on pages 22 to 29.
During the year we reviewed progress against our targets, ensuring that they are 
robust to address the social and environmental challenges facing the world, and 
made good progress on integrating Plan for Better into our strategic outcomes. 
Our efforts to reduce greenhouse gas (GHG) emissions across the value 
chain were recognised by the Science Based Targets initiative (SBTi), who 
approved our accelerated Scope 1, 2 and 3 targets. We were also awarded an 
A rating for our Climate Change CDP submission, the only UK food retailer to 
have achieved this for ten consecutive years. We continue to decrease the 
GHG emissions in our operations, with 51.7 per cent reduction versus our 
baseline, and made good progress in our Scope 3 emissions, with six per cent 
of emissions now having SBTi 1.5oC net zero targets approved.
Plastic reduction is a primary sustainability concern for our customers and 
this year we continued to work with our suppliers to reduce the plastic used 
in our packaging. We have landed several market firsts, including our new 
plastic-free mushroom punnets and the removal of plastic hangers from our 
Tu clothing baby range, all contributing to an overall relative decrease of 
2.8 per cent year-on-year (12.9 per cent relative reduction from our baseline). 
Through our Community and Partnership strategy, now in its second year, 
we continue to help improve access to food and tackle food poverty, with 
£36 million raised for good causes this year. We continue to work in 
partnership with Neighbourly to ensure no good food goes to waste, which 
has supported the redistribution of 13.5 million meals to those in need this 
year. Overall, we increased the surplus food redistributed to communities 
by 57.8 per cent year-on-year.
We are committed to working together with our suppliers to build strength 
in their businesses, benefitting not just our supply chain but ultimately, the 
resilience of the UK food system. To enable this, we have moved increasingly 
to offering longer term contracts with our key suppliers, providing them 
with longer term security to plan and invest in their businesses. We are also 
working in collaboration with many of our suppliers on new and emerging 
methods of production and with new technologies, allowing us to develop 
Principal role and responsibilities
The Committee is responsible for:
•	 Overseeing the sustainability strategy, ensuring it is aligned with 
the Company’s purpose, strategy, culture, vision and values
•	 Ensuring that the sustainability strategy is fully integrated into 
every aspect of our business and overseeing updates and 
progress against our targets and commitments
•	 Monitoring the Company’s progress and performance against the 
Group’s sustainability strategy, including its related targets
•	 Providing support and guidance to management on 
sustainability matters, as appropriate
•	 Monitoring the business’s engagement with stakeholders 
including customers, colleagues, suppliers, the community, 
shareholders and government on sustainability and corporate 
responsibility matters
•	 Receiving updates on the Group’s engagement on sustainability 
matters with external stakeholders, non-Governmental 
organisations and other interested parties
•	 Monitoring external developments on sustainability
•	 Reviewing proposals for the funding of community programmes 
and charity partnerships
•	 Approving the Committee report on its activities and any 
sustainability content in the Company’s Annual Report and any 
standalone Sustainability Report
•	 Recommending the approval of the Company’s Modern Slavery 
Statement to the Board
  The Committee’s Terms of Reference, which are reviewed annually, are 
available on the Company’s website www.about.sainsburys.co.uk. 
Key activities in 2023/24 
•	 Reviewed customers’ perceptions across the Plan for Better pillars
•	 Approved the year-end results and reporting for 2022/23
•	 Received updates on key sustainability matters
•	 Discussed the Health year-end results and agreed an evolved 
approach for 2023/24
•	 Reviewed food waste targets, noting key challenges to reporting
•	 Approved the general merchandise plan to deliver Plan for 
Better targets
•	 Approved the Group’s SBTi submission and net zero 
Transition planning
•	 Reviewed the Plan for Better targets, including the key risks and 
dependencies to deliver
•	 Approved changes to the Committee’s Terms of Reference
better surety of supply, while helping us towards achieving our Plan for 
Better targets.
I am confident in the progress we’ve made on Plan for Better; however, 
we acknowledge fully the scale of the challenge that lies ahead. We are 
committed to delivering against our plan and our stretching targets because 
not only is it critical to the success of our strategy, it is critical to protecting 
and preserving the planet for future generations. We look forward to sharing 
more on our achievements in the coming year.
Keith Weed
Chair, Corporate Responsibility and Sustainability Committee
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Committee governance
The Committee consists of the Chair of the Board, three Non-Executive 
Directors and the Chief Executive. The Committee is chaired by Keith Weed, 
and the Company Secretary and Corporate Services Director or his nominee 
acts as the Secretary of the Committee.
Other attendees include: Chief Marketing Officer, Director of Corporate 
Affairs, Director of Corporate Responsibility and Sustainability and the 
Senior Assistant Company Secretary.
Complementing the Committee’s role, the Audit Committee is responsible 
for overseeing the assurance of our Plan for Better commitments and the 
Remuneration Committee for monitoring and approving sustainability-
linked performance metrics and the alignment of senior executives’ 
individual objectives with sustainability goals. As shown below, cross-
Committee representation provides a link between all the Board 
Committees and enables collaboration. 
The Committee held two scheduled meetings in the year. Attendance at the 
Corporate Responsibility and Sustainability Committee meetings can be 
found on page 67. 
Further information on the Group’s Corporate Responsibility and 
Sustainability agenda can be found on pages 15 to 17 and in our Plan for 
Better Report, available at www.about.sainsburys.co.uk 
Priorities for next year
•	 Continued focus on embedding Plan for Better into all aspects 
of the Next Level Sainsbury’s strategy
•	 Future reporting, regulations and disclosure readiness, including 
TNFD, UK Sustainability Disclosure Standards and IFRS ISSB
•	 Community and charitable partnerships
•	 Climate transition planning
•	 Supplier engagement, including visits to key suppliers
•	 Evolve our approach in ‘Healthy and sustainable diets’ whilst 
influencing the system through sector advocacy. 
•	 Accelerate our strategic approach to food waste, to deliver 
end-to-end opportunities
•	 Evolve our approach on plastic and take a leading role to drive 
action in the sector
•	 Develop our approach to protecting and regenerating nature, 
including responding to emerging frameworks such as TNFD
•	 Redevelop commitments for our diversity, equity and 
inclusion strategy
•	 Develop roadmaps for each of our human rights commitments
Corporate Responsibility and Sustainability Committee Report 
continued
J Sainsbury plc Board
Oversight of the sustainability strategy.
Chair: Martin Scicluna, Chair
Operating Board
Defines the business-wide strategy, adapting to new regulatory 
requirements and trends. Reviews cross-value progress and 
signs off major investments. 
Chair: Simon Roberts, Chief Executive
Plan for Better Steering Committeeb)
Leads operational execution of our sustainability strategy, 
Plan for Better, by overseeing activity, ensuring delivery 
of performance.
Chair: Mark Given, Chief Marketing Officer
Remuneration 
Committee
Reviews remuneration targets 
aligned to the sustainability 
strategya)
Chair: Jo Harlow, Non-
Executive Director
Audit Committee
Reviews risks and confidence in 
disclosures aligned to our 
sustainability strategya)
Chair: Adrian Hennah, 
Non-Executive Director
Corporate Responsibility and Sustainability 
Committee
Reviews the sustainability strategy, ensuring it is aligned with 
the Company’s purpose, strategy, culture, vision and values. It 
also monitors the business’s engagement with stakeholders 
including customers, colleagues, suppliers, the community, 
shareholders and government on sustainability and corporate 
responsibility matters.
Chair: Keith Weed, Non-Executive Director
a)	 Remit of Committee in relation to the sustainability strategy. For full details on the Committees, please read the Remuneration Committee Report on page 99and the 
Audit Committee Report on page 92.
b)	 Membership consists of Directors from across the business, with additional Director representation from Audit, Finance and Strategy attending the Committee twice a year 
to review Corporate Risk Updates, including TCFD recommendations.
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Plan for Better
Sustainability is integrated into the Group’s overall strategy and is key to 
delivering our Next Level Sainsbury’s strategy. The Committee’s role is to 
provide oversight and challenge on any material sustainability matters 
identified, advising and making recommendations to the Board where 
appropriate. The Committee is satisfied that good progress continues to be 
made in understanding and managing the impact of climate-related risks 
and opportunities across the business. Further information can be found on 
pages 15 to 17.
The Committee reviewed Plan for Better 2022/23 results which included the 
performance, targets and priorities. 
The Committee approved the plan to commercially integrate Plan for Better 
into the General Merchandise operations, including priority areas – plastic 
reduction, Scope 3 carbon emissions, championing human rights and 
becoming nature positive – and targets. The Committee expressed their 
support for this plan and the requirement to accelerate progress, while 
acknowledging risks and challenges.
Deep dives into material issues support the Committee in overseeing and 
challenging management in the delivery of our sustainability targets. The 
Committee also receives regular updates on key stakeholders and how this 
aligns to our sustainability agenda. 
Material sustainability matters
During the year, the Committee received deep dive presentations on a 
number of key issues:
•	 The Group’s progress against our health targets and the wider context, 
including lack of impact seen by HFSS legislation, cost of living impact on 
consumer choices translating into a decrease in healthy and sustainable 
choices in shopping baskets, and lack of alignment across the industry on 
a definition of health resulting in different approaches being adopted by 
retailers. The Committee also discussed opportunities for further action
•	 The latest insight into consumer knowledge, perceptions and attitudes 
towards ESG matters, which included the evolution over recent years, 
impact of the current inflationary environment and priorities for action. 
This presentation included visibility of plans to communicate Plan for 
Better activity to customers
•	 An update on the renewed partnership with Fairtrade to deliver living wage 
to banana workers, three years ahead of the IHD industry commitment
•	 An overview of the Group’s approach to water, including our plans to be 
water neutral and our approach beyond our own operations
•	 A presentation from Dame Sara Thornton on Modern Slavery evolving 
risks and Sainsbury’s partnership with Nottingham Human Rights Lab
•	 An overview of H1 milestones achieved and key actions to drive progress 
in H2
•	 An update on Food Waste reporting and the roadmap for accelerated 
action on redistribution
•	 The Group’s approach to SBTi submission and Climate Zero 
Transition planning
Stakeholder engagement
The Committee considers the impact of the Plan for Better strategy on 
our key stakeholders, including customers, colleagues, the community, 
suppliers, shareholders and government. At each Committee meeting, 
members discussed our engagement across these stakeholder groups, 
with deep dives of individual groups at each meeting. 
The Committee was updated on the latest investor feedback on ESG themes 
and the company’s ESG communication activities. The Committee was 
updated on next steps for our investor ESG communications strategy.
The Committee reviewed our engagement with suppliers. The feedback we 
received from suppliers via the Advantage Suppliers Survey and Groceries 
Code Adjudicator report helped set out our future direction. More 
information on suppliers can be found on page 26. 
Further information on stakeholder engagement can be found on pages 22 
to 29.
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Audit Committee Report
Dear Shareholder
I am pleased to present the 
Committee’s report for the 
year ended 2 March 2024. This 
report is intended to provide 
shareholders with an insight 
into key areas considered 
by the Committee, together 
with how the Committee has 
discharged its responsibilities 
during the year.
The Committee plays an important role in ensuring the integrity of the 
financial reporting, the internal control environment and risk management 
processes. This has included ensuring that the financial reporting is aligned 
with latest requirements and guidance from regulators, that it is fair, 
balanced and understandable and that all matters disclosed and reported 
upon meet the needs of our stakeholders. During the year, the Committee 
has focused on its fundamental priorities, which include the evolution of the 
Group’s systems of internal control, the quality and effectiveness of the 
external and internal audit processes and we have considered a variety of 
matters aligned with the Group’s principal risks.
Cyber security is an area that requires ongoing attention and vigilance, and 
the Committee receives updates from the Group Chief Information Security 
Officer and Director of Data Governance at every meeting. The Committee 
continuously reviews the maturity of the Group’s cyber security using the 
National Institute of Standards and Technology framework, considering the 
nature of potential threats, areas of vulnerability, implemented mitigations 
and residual risks. Activities in 2023/24 included an Operating Board 
simulation exercise, penetration tests on our key websites and systems, as 
well as internal training for key functions where processes could be improved. 
The Group also announced an increase in investment in technology as part of 
its next three-year plan; and this investment includes a high focus on security 
and resilience. The Group engages a variety of third-party cyber security firms 
for these tests and to work with the internal IT team on exercises. Cyber 
security will continue to receive attention this year.
In addition, a key area of focus for the Committee has been the internal 
controls programme, including a strong focus on IT general controls. I am 
pleased to report that positive steps have been taken to strengthen the 
Group’s internal controls and good progress has been made in this area, 
including improved documentation of our control environment and the 
strengthening of some elements of internal controls. 
The Committee also received regular updates in relation to Sainsbury’s 
Bank, which operates its own audit and risk committees governed by 
specific banking regulations. The Director of Group Finance attends the 
Sainsbury’s Bank Audit Committee meetings, ensuring that knowledge is 
shared for mutual benefit.
In January 2024, we received a letter from the Financial Reporting Council’s 
(FRC) Corporate Reporting Review Team regarding the FRC’s review of the 
Group’s 2022/23 Annual Report and Financial Statements and 2023/24 
interim results, seeking information in respect of one specific aspect of the 
financial statements. The letter also contained further observations about 
the Group’s Annual Report and Financial Statements for consideration over 
future reporting. Further information on our response can be found on page 
94. The Committee and management welcome the FRC’s drive for 
continuous improvement in the quality of reporting and responded by 
providing the FRC with clarifications and indicating enhancements to 
disclosures, which have been reflected in this Annual Report, where 
appropriate. The FRC subsequently confirmed that the Group had provided 
satisfactory explanations which had enabled them to close their enquiries 
into the 2022/23 Annual Report and 2023/24 interim results.
In last year’s report, we shared our plan for the external audit tender and 
details of the full process and timeline are set out on page 95. Over the 
course of the tender, members of the Audit Committee met with each of the 
firms several times, while members of management spent time meeting the 
audit teams and getting a sense of their capabilities, as well as briefing 
them on the Group. One area of particular focus was data and technology. 
As our audit processes become more reliant on data and systems, we 
needed to make sure the chosen firm’s capabilities and investment plans 
in that space matched our ambitions. The Committee recommended 
PricewaterhouseCoopers (PwC) as the best fit for the Group based on the 
experience of the engagement team and the opportunities arising from the 
use of digital tools and techniques in the audit approach. Subject to approval 
at the 2025 AGM, PwC will be appointed as the Group’s auditor for the year 
ending 28 February 2026. Ernst & Young (EY), who have been the Company’s 
auditor since July 2015, will continue in the role until that time, and will 
therefore undertake the Group audit for the year ending 1 March 2025 as well 
as the year just ended.
Through the annual Board evaluation process (pages 82 to 83), the Board has 
confirmed the effectiveness of this Committee in its role of supporting the 
Board in compliance with its duties. Looking ahead to 2024/25, the 
Committee will remain focused on the Group’s reporting, internal control 
and risk management processes. 
I would also like to thank my Committee colleagues, Brian Cassin and 
Keith Weed, and all the members of management who attend, report to 
and support the Audit Committee, for their energy and focus in enabling 
us to discharge our responsibilities effectively.
Adrian Hennah
Chair, Audit Committee
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Priorities for next year
•	 	Adoption of the FRC’s Audit Committees and the External Audit: 
Minimum Standard
•	 Cyber security
•	 Internal control evolution
•	 Preparation for the transition of the external auditor
Committee governance
The members of the Committee are all independent Non-Executive Directors 
who, together, have experience and skills relevant to the retail sector. The 
Board has determined that Adrian Hennah has recent and relevant financial 
experience, and each member of the Committee has extensive general 
business and management experience. The different and complementary 
skills each member brings to the Committee have helped ensure robust and 
productive discussions with management and the external auditor. The 
Committee members’ expertise and experience is set out in each of their 
biographies on pages 69 and 70. All our Non-Executive Directors have an 
open invitation to attend Committee meetings and are particularly 
encouraged to attend those that consider the full-year and interim results. 
The Committee is also well supported by the Director of Internal Audit, Risk 
and Resilience and the Internal Audit team; they play an important role and 
their work is respected throughout the business.
Regular attendees at Committee meetings include the Chair of the Board, 
the Chief Executive, Chief Financial Officer, Director of Internal Audit, Risk 
and Resilience, Director of Group Finance, Company Secretary and Corporate 
Services Director, Deputy Company Secretary, the Chief Information Officer, 
the Chief Information Security Officer, representatives of Sainsbury’s Bank 
and the external auditor.
The Committee held four scheduled meetings in the year. Details of 
attendance at scheduled Audit Committee meetings can be found on page 
67. Each Committee meeting followed a distinct agenda to reflect the 
financial reporting cycle and particular matters for the Committee’s 
consideration.
The Committee has a periodic and structured forward-looking planner. 
This is designed to ensure that responsibilities are discharged in full 
during the year and that regulatory developments continue to be brought 
to the Committee’s attention. Meeting content is regularly reviewed with 
management and the external auditors, evolving to support appropriate 
discussion. An update is provided to the Board following each meeting.
Committee meetings are generally scheduled close to Board meetings to 
facilitate effective and timely reporting. Committee members regularly hold 
private sessions following each meeting with each of the Director of Internal 
Audit, Risk and Resilience and the external auditor to provide an additional 
opportunity for open dialogue and feedback without management present. 
The Committee Chair also meets with the Chief Financial Officer, Director of 
Internal Audit, Risk and Resilience and external auditor on an ad hoc basis 
and prior to each Committee meeting.
In addition to its key areas of discussion, the Committee received regular 
updates from management in relation to: key financial controls; ESG metrics 
assurance and reporting; general controls; treasury; capital structure; 
internal audit; and compliance. The Committee also received regular 
updates in relation to Sainsbury’s Bank which operates its own audit and 
risk committees governed by specific banking regulations.
Principal role and responsibilities
The primary role of the Committee is to ensure the integrity of 
the financial reporting and auditing processes and monitor the 
effectiveness of the Group’s internal control and risk management 
systems. This includes:
•	 	Monitoring the effectiveness of the financial statements of the 
Company, discussing formal announcements relating to the 
Company’s financial performance and any significant issues 
and any significant judgements contained in them
•	 	Reviewing the Group’s financial statements and the material 
financial reporting judgements contained in them
•	 	Advising the Board on whether the Committee believes that this 
Annual Report and the financial statements contained within it, 
when taken as a whole, are fair, balanced and understandable, 
and provide the information necessary for shareholders to assess 
the Group’s position and performance, business model 
and strategy
•	 	Reviewing and monitoring the external auditor’s independence 
and objectivity and the effectiveness of the audit process, taking 
into consideration relevant UK professional regulatory requirements
•	 	Developing and implementing a policy on the level, amount and 
pre-approval of non-audit services provided by the external auditor
•	 	Advising the Board on the appointment, reappointment and 
removal of the external auditor and the remuneration and terms 
of engagement of the external auditor
•	 	Monitoring the effectiveness of the Group’s internal control and 
risk management systems, including whistleblowing and 
fraud controls
•	 	Reviewing the scope, activities and results of the Internal 
Audit function
•	 	Reviewing the Committee’s Terms of Reference, carrying out 
an annual performance evaluation exercise and noting the 
satisfactory operation of the Committee
•	 	Reporting to the Board on how it has discharged its operations
  The Committee’s Terms of Reference are available on the Company’s 
website www.about.sainsburys.co.uk
Key actions from 2023/24
•	 	Financial reporting, including the processes in place to ensure 
the Annual Report and Financial Statements are fair, balanced 
and understandable
•	 	Review of cyber security and the IT control environment, 
incorporating deep dives on, and continued monitoring of, 
cyber risk
•	 	Assessment of Environmental, Social and Governance (ESG) 
metrics and assurance
•	 Considered management’s assessment of the status of ongoing 
regulatory investigations and litigations	
•	 The continued evolution of our risk management framework
•	 	Completed a review of the FRC 'Audit Committee and the 
External Audit: Minimum Standard', noting that the majority 
of provisions are already met by the Group
•	 	Conducted a competitive tender for our external auditor
•	 	Continued to monitor the government’s proposals on audit and 
corporate governance reforms and our response
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The Committee advised the Board that the Annual Report and Financial 
Statements are fair, balanced and understandable, and that the Directors 
have provided the necessary information for our shareholders to assess the 
Company’s prospects, business model and strategy.
Risk management and internal controls, and principal risks 
and uncertainties
The risk management process reviews the principal risks and 
uncertainties, and emerging risks and opportunities, facing the 
Group and compares these to the assumptions, scenarios, and 
actions used and addressed in the Group’s corporate plans
The Committee reviewed the Group’s risk register, principal and emerging 
risks and mitigation strategies, with particular discussion around prioritised 
risks and risk movements. A robust assessment of the Group’s principal risks 
was performed and the risks were fully refreshed to ensure that they align 
to the Next Level Sainsbury’s strategy. Detailed scenario analysis work to 
stress test liquidity was performed as part of the viability scenario modelling.
  For further information on the Group’s risk management framework, 
see pages 53 to 61
Reports from the Audit and Risk Committees of Sainsbury’s Bank, 
including risk and compliance reporting processes
Sainsbury’s Bank plc is a subsidiary of the Company, with an independent 
Board responsible for setting the Bank’s strategy, risk appetite and annual 
business plan. It has an independent Chair and four Non-Executive Directors, 
all of which are independent. The Bank’s Chief Executive Officer and Chief 
Financial Officer also sit on the Bank’s Board. The Bank’s Chief Executive 
Officer, supported by the Bank’s Executive Committee, is responsible for 
day-to-day management of the business.
The Chairs of the Bank’s Audit and Risk Committees, the Bank’s Chief 
Executive Officer, the Bank’s Chief Financial Officer and the Bank’s Chief Risk 
Officer attended meetings of the Committee and provided updates on 
critical accounting judgements and estimates, important operating and 
regulatory matters, operational resilience and capability, the control 
framework and environment, and key risks. During the year, this included 
updates on the impacts of the Group’s announcement that financial services 
products to be offered in the future will be provided by dedicated financial 
services providers through a distributed model and over time, this would 
result in a phased withdrawal from the core Banking business. There is 
regular communication between Sainsbury’s Internal Audit function and its 
equivalent within the Bank.
  See Significant financial and reporting matters on page 97
Key financial controls and IT general controls
The Committee considered the effectiveness of key financial control 
programmes and monitored the control environment, and implementation 
of recommendations to further enhance the Group’s financial reporting 
systems. The Internal Controls over Financial Reporting (ICFR) programme 
was established in 2020/21 to design, implement and embed a framework to 
both improve the Group’s internal control framework and to comply with 
expected enhancements to corporate governance for UK listed companies. 
Sponsored by the Chief Executive and Chief Financial Officer, the Committee 
received regular updates on the progress made towards the implementation 
of the ICFR framework, including key milestones achieved and feedback 
from third-party reviews, with regular updates on the IT General Controls 
workstream. In addition, the Committee monitored the implementation of 
management actions to remediate issues identified and make improvements.
  Further information on our internal controls framework is on page 98
Financial reporting
The integrity of the financial statements and formal 
announcements relating to financial performance
The Committee reviewed the Annual Report, the Preliminary and 
Interim Results, and supporting information to assist in these reviews.
Significant financial and reporting matters
The Committee ensures that the Group’s accounting policies are applied 
correctly, including implementing accounting standards, and applies 
judgements effectively. During the year, the Committee reviewed items 
relating to pensions, tax, going concern and viability, and the impact of the 
Group’s strategic review of its Financial Services division.
In January 2024, Sainsbury’s received a letter from the FRC’s Corporate 
Reporting Review Team in relation to its regular review and assessment of the 
quality of corporate reporting in the UK. The letter focused on the Group cash 
flow statement for the period ended 16 September 2023, and in particular the 
classification of bond redemption payments associated with the Highbury and 
Dragon property transaction as an investing cash flow. The Committee reviewed 
the FRC’s findings, and the Company’s response to the FRC to provide additional 
information in relation to the classification of the pre-funded cash flows which 
formed part of the Highbury and Dragon property transaction. 
The FRC’s review was based solely on the 2023 Annual Report and Financial 
Statements and interim results for the 28-week period ended 16 September 
2023, and therefore did not benefit from prior discussion with the Company 
on the underlying detail. Sainsbury’s responded to the FRC and proposed 
additions to future disclosures, following which the review was closed. 
Enhanced disclosures have been included in the 2024 financial statements 
within note 2.6.
  More information can be found in Significant  
financial and reporting matters on page 97
Treasury funding and liquidity
The Committee assessed the business’s secured and unsecured borrowing 
facilities and their appropriateness in tenure and amount to Group requirements.
Assumptions and qualifications in support of the viability and 
going concern statements
The Committee assessed the financial projections over three years, which 
continues to be an appropriate timeframe for the Statement of Viability as 
approved by the Board. 
  More information can be found in the Statement of Viability on page 62 and the 
Significant financial and reporting matters on page 97
Assessment of whether the Annual Report is fair, balanced 
and understandable
One of the Committee’s key roles is to advise the Board that it is satisfied 
that the Annual Report and Financial Statements are fair, balanced and 
understandable (see page 123) and provide the information necessary for 
shareholders to assess the Company’s position, performance, business model 
and strategy. In doing so, the Committee ensures that management disclosures 
reflect the supporting detail, and/or challenges management to explain and 
justify their interpretation and, if necessary, re-present their position. The 
external auditor supports this process, in the course of its statutory audit, by 
auditing the accounting records of the Company against agreed accounting 
practices, relevant laws and regulations. In addition, the Committee:
•	 	Reviewed the processes and controls that underpin the Annual 
Report preparation including confirmation that the reporting team 
and senior management were fully aware of the requirements and 
their responsibilities
•	 	Received a draft of the Report and provided feedback on it, 
highlighting any areas that required further clarity. The draft Report 
was amended to incorporate any feedback ahead of final approval
•	 	Was provided with a list of the key matters included in the Annual 
Report, highlighting both positive and negative influences
•	 	Reviewed and discussed the key factors considered in determining 
whether the Report is fair, balanced and understandable
Audit Committee Report continued
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The Committee conducted an audit effectiveness review. The review 
included the distribution of questionnaires to those Directors and managers 
in the business directly involved in the audit. The questionnaires sought 
feedback on their experience with the external auditor, considering areas 
such as the knowledge and experience of the audit team, audit strategy and 
planning, and the quality of communication. Management collated the 
responses and reported back to the Board.
As a result of the review, it was determined that EY maintained good 
working relationships and had demonstrated strong technical 
understanding, including within the Tax and Pensions specialist teams. 
Previously identified improvements had been implemented and 
opportunities for further improvements in the planning process were 
positively discussed between EY and Sainsbury’s management during 
the audit debrief, with steps being taken on both sides to drive further 
improvements to the process going forward. The review enabled the 
Committee to conclude that EY has continued to provide a high quality 
audit, which it conducted with great rigour and constructive challenge, 
including questioning key accounting issues, and exercising professional 
scepticism in its challenge of management’s assumptions, judgements 
and assertions, particularly over the Group’s review of impairment. 
The Committee concluded that EY remained effective, objective and 
independent in their role as external auditor.
The Committee has confirmed compliance with the provisions of the 
Statutory Audit Services Order 2014.
Recommendation of the reappointment of EY as auditor
The Committee has recommended to the Board the reappointment of EY 
as auditor for the 2024/25 financial year. A resolution to this effect will be 
tabled at the 2024 AGM.
Tender of external auditor
In accordance with current regulations that require an audit tender every 
ten years, the Committee held a competitive tender process for the statutory 
audit for the financial year ending 28 February 2026.
The Committee approved the tender participants, process, timetable and 
assessment criteria. The tender was open to all audit firms; however, only 
two firms, including the incumbent auditor, EY, agreed to participate in the 
tender. As a first phase, the participants were provided access to a data 
room which contained information to enable the participants to gain a 
better understanding of how the Group is structured and operates. This 
information was supplemented by meetings with senior management. 
This process ran in parallel with each firm conducting an audit independence 
assessment for the purpose of year ended 28 February 2026. The second 
phase of the process included discussions as to how the firms would 
structure their audit at an operational level and work with our management 
team. The Committee then reviewed the written proposals and met with the 
participants who were assessed against a range of criteria, including how 
the participants responded in their proposal to the scale and complexity 
of the Group, the strength and depth of the engagement team and the 
opportunities arising from the use of digital tools and techniques in the 
audit approach.
On 22 February 2024, it was announced that the Board had approved the 
appointment of PwC as statutory auditor for the year ending 28 February 
2026. The appointment is subject to the approval by shareholders at the 
Annual General Meeting in July 2025. A plan will be put in place during 
2024/25 to enable a smooth transition. Going forward, the Committee 
anticipates that the audit will be put out to tender at least every ten years. 
External audit
Scope of the external audit plan and fee proposal
The Committee reviewed EY's overall work plan, and, through regular 
communication, advised EY of any specific matters which the Committee 
was considering from previous audits and current operations. The 
Committee approved EY's remuneration and terms of engagement.
Independence and objectivity
The independence and objectivity of the external audit function is a 
fundamental safeguard to the interests of the Company’s shareholders.
In line with regulation, the previous EY audit partner rotated off the audit at 
the end of the 2020/21 audit. The Committee approved the appointment of 
Colin Brown as the new EY partner for 2021/22 in April 2021.
Non-audit services and fees
The Committee has overseen the Company’s policy which restricts the 
engagement of EY in relation to non-audit services. The intention is to ensure 
that the provision of such services does not impact on the external auditor’s 
independence and objectivity. It identifies certain types of engagement that 
the external auditor shall not undertake, including internal audit and actuarial 
services relating to the preparation of accounting estimates for the financial 
statements. It requires that individual engagements above a certain fee level 
may only be undertaken with pre-approval from the Committee or, if urgent, 
from the Chair of the Committee and ratified at the subsequent meeting of 
the Committee. It recognises that there are some types of work where a 
detailed knowledge of the Company’s business is advantageous. The policy 
is designed to ensure that the auditor is only appointed to provide a non-audit 
service where it is considered to be the most suitable supplier of that service.
The Committee received a report on the non-audit services provided. The 
annual aggregate of non-audit fees is capped at 70 per cent of the annual 
average of the audit fees for the business for the preceding three-year period.
The audit fees for the year in respect of the Group and subsidiaries were 
£3.7 million. A breakdown of the fees is provided in note 9.4 of the consolidated 
financial statements on page 153. Total non-audit fees were nil.
Effectiveness and quality of external audit
The Committee considers the effectiveness of the external auditor on an 
ongoing basis during the year, including its independence, objectivity, 
appropriate mindset and professional scepticism. The Committee has 
regard to the:
•	 	Experience and expertise of the external auditor
•	 	Quality of their direct communication with, and support to, 
the Committee
•	 	Content, insights and value of their reports
•	 	Fulfilment of the agreed external audit plan
•	 	Robustness and perceptiveness of the external auditor in their 
handling of key accounting and audit judgements
•	 	Interaction between management and the external auditor, 
including ensuring that management dedicates sufficient time to 
the audit process
•	 	Provision of non-audit services
•	 	Evaluation of the effectiveness of the external auditor
•	 	Other relevant UK professional and regulatory requirements
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96  J Sainsbury plc Annual Report and Financial Statements 2024
GSCOP requires that the business delivers an Annual Compliance Report to 
the Competition and Markets Authority as approved by the Chair of the 
Audit Committee, and that a summary must be included in the Annual 
Report and Financial Statements. This is set out below.
Summary Annual Compliance Report
Sainsbury’s GSCOP compliance framework is based on a collaborative 
relationship with the Groceries Code Adjudicator (GCA), clear policies and 
procedures, mandatory training and regular monitoring and reporting of 
compliance. Sainsbury’s also has specific internal resource who provide all 
relevant colleagues with day-to-day advice and guidance.
We continue to engage positively with the GCA on GSCOP matters and work 
collaboratively to address any concerns and improve our processes through 
our regular catch ups. We also proactively contact the GCA for clarification 
and guidance.
Throughout the year, inflationary pressures, global supply chain challenges 
and the changing pattern of inflation have impacted the management of 
cost prices. Our approach continues to be driven by close analysis of 
inflation, commodity prices and by a commitment to delivering value for our 
customers. Sainsbury’s Buying and Supply Chain teams have worked closely 
with suppliers to minimise the impact on customers. In particular, we work 
collaboratively with suppliers when responding to Cost Price Increase (CPI) 
requests and cost price decreases. Our approach aligns to the GCA’s 7 Golden 
Rules for CPIs and these Rules are included in mandatory GSCOP training. 
During the year, the mandatory training programme was also extended to 
ensure the 7 Golden Rules principles covered cost price decreases.
During the year, we communicated with suppliers on various matters. In 
particular, we re-communicated the CCO’s independence, as part of the 
changes in the CCO role, re-committed to maintaining supplier 
confidentiality whenever requested and re-emphasised that suppliers 
should not hesitate to contact the CCO if they feel they have been adversely 
impacted after raising a GSCOP concern.
This is in support of the GCA re-confirming to suppliers that they should not 
experience retribution or retaliation as a result of raising a concern to 
the CCO.
Relevant policies are reviewed and updated on at least an annual basis and 
are made available to colleagues. This is supported by Sainsbury’s GSCOP 
training, which is compulsory for colleagues who are part of the Buying 
Team and for colleagues who are directly or indirectly involved in decisions 
that impact GSCOP. As a result, over 1,700 colleagues completed appropriate 
training during the year. GSCOP training is reviewed and refreshed annually 
to ensure it remains current. There are defined consequences for training 
non-compliance.
Regular meetings are held between the CCO, Legal, Internal Audit and the 
Commercial Planning team to identify and assess emerging risk areas and 
an established compliance monitoring programme is embedded within the 
business. The Operating Board and Audit Committee are updated four times 
a year on GSCOP matters.
Twenty-one potential breaches were reported in 2023/24 (31 in 2022/32). Of 
the 21 potential breaches of GSCOP, 19 were in scope of the Code, two were 
deemed to be outside of the Code and two were withdrawn by the supplier.
Ten breaches were raised directly to the CCO and 11 were raised within 
our Trading Division and, where required, were escalated to the CCO using 
standard escalation procedures. Nineteen potential breaches reported in 
the year were resolved in the year, and two potential breaches are ongoing 
at the date of this report. The majority of complaints raised directly to the 
CCO related to delists. 
Two were pursued as a formal Article 11 Dispute but, for one of these, a 
formal response has been provided noting that the supply agreement does 
not fall within the scope of the Market Investigation Order. None have been 
referred to the GCA for arbitration. Causes of potential breaches are 
reviewed to identify areas for improvement.
Internal Audit
Director of Internal Audit, Risk and Resilience
The Director of Internal Audit, Risk and Resilience reports to the Committee 
Chair and has direct access to all members of the Committee. The purpose, 
authority and responsibility of Internal Audit are defined in the Internal 
Audit Charter, which the Committee reviews annually.
Management’s responsiveness to Internal Audit’s findings 
and recommendations
Internal Audit plays an integral role in our governance structure and 
provides regular reports to the Committee on the effectiveness of 
governance, systems and processes and controls across the Group. 
The Committee was provided with updates on Internal Audit’s findings, 
key agreed actions and the status of all actions at each meeting.
Internal Audit Plan
Internal Audit’s activity is primarily driven by the Internal Audit Plan, which 
is agreed each half-year, ensuring it reflects the key risks the Group faces, 
the governance frameworks, management structures and operations. 
The scope of the Internal Audit Plan and subsequent amendments were 
reviewed by the Committee.
Effectiveness of the Internal Audit function
In line with the Internal Audit Charter, Committee terms of reference, and 
the recommendations of the Institute of Internal Auditors, the Committee 
conducts an annual assessment of the effectiveness of Internal Audit, in 
2023/24 the Audit Committee reviewed Internal Audit resources, its work 
programme and results. The Director of Internal Audit, Risk and Resilience 
provides an annual overview of Internal Audit’s performance to the Audit 
Committee including key performance indicators and stakeholder feedback. 
Areas for improvement and actions required are highlighted and are used to 
assist in reviewing the effectiveness of Internal Audit. The Committee 
concluded that Internal Audit continued to be effective.
Other
Audit Committee’s effectiveness
The Committee was evaluated this year as part of the Board evaluation 
process and the Committee was rated highly overall. See pages 82 and 83 for 
further details. The review found the Committee to be strong, robust and 
challenging, with good coverage of financial and other skills. The evaluation 
suggested some areas for improvement, which will be incorporated into the 
2024/25 forward agenda. Overall, the Committee was found to be effective.
Significant issues raised through the whistleblowing process
The Committee received updates at each meeting on any significant 
whistleblowing matters. The Committee Chair receives earlier notification 
of matters that may develop into a significant incident. No issues arose that 
required the Committee to be updated ahead of a scheduled meeting.
All issues were escalated to the relevant manager for investigation. Internal 
Audit reviewed the effectiveness of the whistleblowing process during the 
year. Actions to further improve the process will be implemented in the next 
financial year.
Data governance and information security
Updates on the data governance and information security programme were 
provided at each meeting of the Committee during the year, including 
updates on strategic risks, third-party assurance, cyber security, the plan for 
legacy assets, access controls and security.
Ongoing material litigation
The Committee is appraised on all material litigation and potential impacts 
on financial reporting disclosures. These are also provided to the Board.
Compliance with the Groceries Supply Code 
of Practice (GSCOP)
GSCOP sets out how large retailers should manage certain aspects of their 
relationship with grocery suppliers. Each retailer to which it applies has to 
appoint a Code Compliance Officer (CCO) whose duties include hearing disputes 
between suppliers and the retailer. Sainsbury’s had appointed the Director of 
Internal Audit, Risk and Resilience as its CCO. Following her departure in 
September 2023, the Director of Group Legal Services was appointed as the CCO.
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Significant financial reporting matters and judgements
The areas of focus and actions taken by the Committee in relation to the 2024 Annual Report are outlined below. The Committee was satisfied in each case 
with the accounting and disclosure in the financial statements.
Areas of focus
Actions taken
Presentation of financial statements
The Group uses Alternative Performance Measures (APMs) and includes 
additional disclosures, including reconciliations to statutory measures. 
See pages 199 to 203
See note 5, Non-underlying items, on pages 149 to 150
The Committee considers it important to take account of both the 
statutory measures and the APMs when reviewing these 
financial statements.
In particular, items excluded from underlying results were reviewed by 
the Committee and it is satisfied that the presentation of these items is 
clear, applied consistently across years and that the level of disclosure is 
appropriate. The net non-underlying charge this year was £(424) million 
(2023: net charge of £(363) million). Excluded items are detailed on pages 
149 to 150. The most significant items relate to the Group's announcement 
of a phased withdrawal from the core Banking business which resulted in 
the recognition of impairments of non-financial assets and other 
restructuring costs, and the continuation of restructuring programmes 
announced in November 2020.
The Committee gave particular attention to ensure the Group’s APMs are 
not presented in ways that give them greater prominence than amounts 
stemming from the financial statements; that specific, tailored 
explanations for the inclusion of individual APMs are provided; and that 
APMs are reconciled to the most directly reconcilable line items.
Pensions accounting
The Group’s balance sheet shows a pension surplus of £690 million, which 
comprises £6,702 million of assets, and £(6,012) million of liabilities. This 
compares to a net surplus in the prior year of £989 million.
See note 34, Retirement benefit obligations, on pages 183 to 188
The Committee reviewed a summary of the actuarial assumptions used 
in arriving at the valuation for the defined benefit pension scheme and 
was satisfied that they are reasonable.
In particular, the Committee reviewed the financial impact of discount, 
inflation and mortality rates and related sensitivities. 
Going concern and viability
Going concern and viability projections are produced bi-annually and 
monitored regularly.
See Statement of Viability on page 62
The Committee undertook a detailed review of the financial liquidity of 
the business over the formal viability assessment period of three years, 
and made further enquiries beyond this timeframe, taking into account 
cash flows, current levels of debt and the availability of future finance. 
The viability assessment was discussed by the Committee in March 2024 
and scenarios to be stress-tested through the business’s corporate plan 
were agreed. The outcomes of scenarios, stress-tests and further 
enquiries were discussed and concluded in April 2024.
Sainsbury’s Bank reporting and charges arising from 
the strategic review of the Financial Services business
During the year, the Group announced a phased withdrawal from its core 
Banking business such that financial services offered in the future will be 
provided by dedicated financial services providers through a distributed 
model. This represented an indicator of impairment and accordingly a full 
impairment review was undertaken on the Bank’s non-financial assets, as 
well as the Group’s goodwill in relation to the Bank. Furthermore, the 
requirement for certain provisions and impacts on effective interests has also 
needed to be assessed.
The review resulted in impairment and other restructuring costs of £273 million 
treated as non-underlying costs as detailed in note 5, Non-underlying items 
on pages 149 to 150.
Separate to the announced phased withdrawal above, the Bank disposed of its 
mortgage portfolio during the year.
In addition, the Bank’s impairment provisioning for customer loans is a 
significant risk and is subject to complex IFRS 9 accounting requirements.
The Committee receives updates on the key agenda items discussed at 
the Bank’s Audit Committees. These include accounting judgements and 
estimates and important operating and regulatory matters such as 
liquidity, cash flows, capital adequacy and risk management processes. 
The Committee reviewed summary reports produced by management 
setting out the outcomes of the impairment assessment as well as the 
other costs triggered by the strategic decision over the future of the 
Banking business. 
The Committee challenged the assumptions used in the impairment 
reviews and the recognition and timing of other costs and provisions, the 
consistent application of accounting methodology, and the treatment of 
these charges as non-underlying items. The Committee were satisfied 
with the outcomes of the impairment reviews and recognition of other 
costs and provisions as well as the classification as non-underlying. 
The Committee also reviewed the impact of the announced phased 
withdrawal on the Group's going concern and viability assessments, and 
were satisfied that these did not impact the conclusions reached. 
The Committee also reviewed the accounting treatment for the disposal 
of the mortgage portfolio, and the accounting judgements and estimates 
applied to the impairment of loans to Bank customers. 
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98  J Sainsbury plc Annual Report and Financial Statements 2024
Areas of focus
Actions taken
Climate change disclosures
With the impacts of climate change being felt around the world, we 
understand the important leadership role we can play to help reduce the 
impact of the food system on the climate. Consideration has been given to the 
impact of both physical and transition climate change risks, and how these 
impact the financial statements.
See pages 30 to 43 for our Task Force on Climate-related Financial Disclosures
The Committee challenged and reviewed the Task Force on Climate-
related Financial Disclosures, in particular the qualitative and 
quantitative scenario analysis performed, our transition plan, and 
cross-industry metrics.
The Committee are satisfied that appropriate consideration and 
disclosure has been given to the impacts of Climate Change on the 
Group’s financial statements.
Contingent liabilities
Along with other retailers, the Group is currently subject to claims from 
current and ex-employees in the Employment Tribunal for equal pay under 
the Equality Act 2010 and/or the Equal Pay Act 1970.
See note 37, Contingent Liabilities, on page 190 for further details
The Committee further considered management’s assessment of the 
status of ongoing regulatory investigations and litigation.
Areas of focus
Actions taken
Asset acquisition
The Group purchased Supermarket Income REIT’s beneficial interest in a 
commercial property investment pool, in which the Group already held a 
beneficial interest, during the year. 
See note 2.6, Asset Acquisition, on page 139
The Committee reviewed the accounting treatment applied to the 
transaction, including the assessment as to whether the assets and 
liabilities acquired in the transaction constituted a business under IFRS 3 
Business Combinations. The Committee reviewed the significant 
judgement applied when considering the classification of the pre-funded 
cash flows which formed part of the total consideration within the Group's 
cash flow statement. The Committee were satisfied with the accounting 
treatment and the disclosures made in the financial statements.
Internal controls framework
The internal controls framework encompasses controls relating to financial 
reporting, preparation of consolidated Group accounts, operations, 
compliance, risk management and Sainsbury’s interests in joint ventures.
The Audit Committee reviews the effectiveness of internal controls on an 
ongoing basis and monitors any remedial action required. An overview of 
key elements of the control framework is set out below.
Our control environment
•	 The Board discusses and approves the Company’s strategy, plans, 
objectives, budget and the risks to achieving them
•	 Group-wide policies covering delegations of authority, anti-bribery 
and corruption and key compliance requirements such as keeping 
information safe and HR policies set clear parameters for colleagues
•	 Management regularly reviews risks to achieving objectives, with 
mitigating controls identified and actions taken
Controls embedded in the business
•	 Policies, procedures and controls are embedded within 
business processes
•	 Specific teams, such as Central Retail and Technical Operations, support 
the design and implementation of specific controls across the business
•	 Training programmes are provided to support implementation and 
compliance with key policies, processes and controls
Significant financial reporting matters and judgements continued
Monitoring and oversight
•	 Compliance with policies, standards and controls is monitored and 
evaluated in finance, accounting, treasury, information security and 
safety management
•	 The Business Performance Review forum provides oversight and approval 
of capital spend
•	 The Capital Returns forum monitors the outcome of capital spend
•	 Quarterly commercial reviews by Executive Directors of financial and 
operational performance cover all business areas
•	 Oversight and governance committees have delegated responsibility for 
monitoring key risk areas such as the Data Governance, Group Safety, and 
Treasury Committees
Our assurance framework
•	 Operating Board members certify annually that the corporate risk map 
accurately reflects their view of key risks across the business, that they 
are responsible for managing risks relevant to their division and that 
internal controls exist to provide reasonable, but not absolute, assurance 
that the risks in their areas of responsibility are appropriately identified, 
evaluated and managed
•	 The Board and the Committee review any significant fraudulent activity 
and whistleblowing by colleagues, suppliers or other parties, including 
alleged incidents of bribery, and actions being taken to remedy any 
control weaknesses
•	 Reports from management are presented to the Operating Board and 
Audit Committee on how we manage material risks
•	 Management and the Audit Committee review the scope and results of 
the work of Internal Audit across the Company and of the implementation 
of their recommendations
•	 The Committee reviews the scope and results of the work of the external 
auditor and any significant issues arising
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Annual Statement from the Remuneration Committee Chair
Dear Shareholder 
As we move from our Food First 
strategy to our Next Level 
Sainsbury’s strategy, the role 
of the Remuneration 
Committee is to ensure that 
executive remuneration is 
aligned to the performance 
achieved over the last three 
years and supports the 
delivery of our future 
objectives. 
In 2021, we set ourselves stretching targets, measured through eight key 
performance indicators. We are very proud of what we have achieved, 
particularly in light of the significant economic challenges that have 
presented themselves during the life of the plan. We’ve grown grocery 
volume market share, won more loyal customers, become consistently 
more competitive on price and led the market on customer service, while 
also delivering strong financial results and investing in colleagues. 
In 2023/24 we delivered underlying profit before tax of £701 million, as well 
as strong retail free cash flow generation of £639 million, both above the top 
end of our guidance range. The proposed full-year dividend of 13.1 pence 
continues the strong returns to shareholders over recent years. 
The Remuneration Committee seeks to take a measured and responsible 
approach to executive pay, considering the specific circumstances and the 
perspectives of all our stakeholders. When making its decisions this year, 
it has carefully considered the external environment, the results delivered 
and executive pay in the context of wider workforce investments.
In January 2024 we were the first full choice supermarket to announce we 
would be paying colleagues £12 (£13.15 in London), continuing to be in line 
with the Real Living Wage. This was our biggest ever single investment in 
colleague pay – £200 million – bringing the three year total investment to 
over £500 million. Our wage bill is our biggest operating cost but we are 
committed to investing in our people first, in the knowledge that our strong 
performance would not be possible without our colleagues’ engagement and 
customer focus.
In February 2024, we presented our new purpose and the next phase of our 
strategy to shareholders and committed to a progressive dividend policy 
and a share buyback programme of £200 million in 2024/25. Our Next Level 
Sainsbury’s strategy will see us going faster and further than ever before, 
as we continue to put good food at the heart of all that we do. During the 
course of the year the Committee reviewed our incentive arrangements to 
ensure they support the delivery of the strategy over the next three years.
2023/24 remuneration
•	 Chief Executive received a four per cent pay increase, below the 
ten per cent increase that retail hourly-paid colleagues received 
over the year
•	 Reflecting strong financial performance and delivery of strategic 
scorecard measures, the annual bonus paid out at 100 per cent of 
maximum for Simon Roberts and 98 per cent of maximum for 
Bláthnaid Bergin
•	 The long-term incentive plan launched in 2021 to drive the Food 
First strategy – the 2021 Win in Food incentive plan – vested in 
2024 at 70 per cent of maximum as a result of delivery against 
the eight key performance indicators
2024/25 remuneration
•	 Continued investment in colleagues – £200 million pay investment 
in retail hourly-paid colleagues. Pay rates continuing to be in 
line with the Real Living Wage, alongside a competitive 
benefits package
•	 Executive Directors receive a four per cent pay increase, below 
the over nine per cent increase for retail hourly paid colleagues
•	 The Committee reviewed the long-term incentive plan and 
updated the targets to ensure it is aligned to our new purpose 
and the next phase of our strategy
•	 The 2024 Next Level incentive plan measures performance over 
the next three years against our eight performance commitments 
(with 70 per cent subject to financial performance and 30 per 
cent subject to strategic indicators)
Principal role and responsibilities
•	 Determining and agreeing with the Board a transparent 
Remuneration Policy which supports the Company’s strategy 
and promotes long-term sustainable success
•	 Setting the Remuneration Policy and individual remuneration 
arrangements for the Chair, Executive Directors and Operating 
Board Directors
•	 Reviewing and noting remuneration trends and reward policies 
applying to all colleagues, considering alignment to culture and 
taking these into account when determining executive pay
•	 Approving the service agreements of each Executive Director, 
including termination arrangements
•	 Considering the achievement of the performance conditions 
under annual and long-term incentive arrangements
  The Committee’s Terms of Reference are available on the Company’s 
website www.about.sainsburys.co.uk.
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100  J Sainsbury plc Annual Report and Financial Statements 2024
Colleague pay and engagement
The Remuneration Committee’s remit includes oversight of pay 
arrangements across the Group and we have always considered broader 
colleague pay when making executive pay decisions. All Remuneration 
Committee meetings start with an update on recent reward changes and 
initiatives for our colleagues and an overview on feedback from colleagues 
via different communication channels. In addition, the Non-Executive 
Directors spend time visiting stores and participating in colleague listening 
so they can hear colleagues’ own perspective on pay at first hand. 
The Chair and I meet at least once a year with colleagues specifically to give 
more insight into the structure of our executive remuneration package and 
hear their views. 
From 3 March 2024, our base rates of pay for our national Sainsbury’s and 
Argos Retail, Travel Money and LFC colleagues, increased by over nine per 
cent to £12 per hour, and by 10 per cent to £13.15 per hour for our London 
colleagues. This £200 million investment in colleague pay is the largest 
single investment we have made and the new rates remain in line with the 
Real Living Wage and well ahead of the government’s National Living Wage 
of £11.44.
We introduced free food for colleagues in stores, depots, LFCs and Contact 
Centres during the cost of living crisis and this continues to be valued by our 
colleagues. We have continued to build on our competitive benefits package. 
In July 2023, we introduced free sanitary products in all sites and stores. In 
addition to our financial wellbeing support (which includes a salary advance 
product, loans and debt consolidation support), we launched a colleague 
savings scheme in January 2024. Building on our enhancements to colleague 
discount over the last two years, colleague discount on Sainsbury’s 
purchases now increases from 10 per cent to 15 per cent every Friday and 
Saturday. This provides additional certainty to colleagues and makes their 
weekly shop more affordable.
As last year, we have also targeted investment in pay towards our front-line 
managers. For the last three years, we have applied different standard 
percentage increases depending on grade. In 2024, the pay review pot 
for front-line managers is five per cent and for senior management 
four per cent.
The Committee continues to review the Company’s progress in closing 
its gender and ethnicity pay gaps. We are moving closer towards gender 
balance in our business with improved representation for women at senior 
leadership level and a higher percentage of men year-on-year in our hourly 
paid roles. Our mean gender pay gap is 8.4 per cent (down from 8.5 per cent 
last year), with a small increase to the median pay gap to 6.7 per cent (from 
6.3 per cent), but both remain well below the UK average. Our ethnicity pay 
gap remains negative and the mean has changed from -1.6 per cent to 
-2.9 per cent.
Customers and community
Our colleagues play a vital role in delivering great customer service leading 
to more people choosing Sainsbury’s more often. We continue to focus on 
delivering great value for our customers, investing £780 million in price over 
the last three years. During the year we also expanded our Aldi Price Match 
to cover over 600 products and Nectar Prices have enabled customers to 
access great value and make significant savings on their weekly shop. 
Sainsbury’s has a strong community presence across the UK and this year 
we have raised £36 million for good causes across all of our programmes. 
Our partnership with Neighbourly has allowed us to redistribute over 
13.5 million meals to those in need and we have donated £11.4 million to 
tackle food poverty through our Nourish the Nation programme. We aim 
to support local communities through our Community Grant scheme 
and have committed over £1 million to local causes this year. 
Executive remuneration in 2023/24
The Committee carefully assesses performance against a framework to 
ensure that incentive outcomes are aligned to the underlying performance 
of the business and the experience of shareholders. 
The Committee is satisfied that the total remuneration for Executive 
Directors in respect of 2023/24 reflects performance over the period, 
considering the prevailing market and economic conditions and the 
strong progress that has been made against the Food First strategy.
Annual bonus
Profit accounts for 50 per cent of the overall bonus, with 20 per cent based on 
retail free cash flow and 30 per cent based on a strategic scorecard. Reflecting 
our strong performance during 2023/24, we exceeded our profit and retail free 
cash flow targets, resulting in an outturn of 100 per cent of the maximum.
The 30 per cent of the bonus based on a strategic scorecard is made up of 
customer metrics, colleague metrics and individual strategic objectives. 
The Committee considered performance across all elements in order to 
determine the outturn. We have delivered strongly for customers, 
demonstrated by growth in customer satisfaction scores. Colleague 
engagement scores increased further against a high base, and we made 
further progress towards our stretching gender and ethnicity targets. The 
Committee has agreed that both the customer element and the colleague 
element should pay out at ten per cent (each out of a possible ten per cent).
The Committee reviewed Simon Roberts’ and Bláthnaid Bergin’s performances 
against their individual strategic objectives and determined that both had 
delivered their objectives.
Under Simon Roberts’ leadership, Sainsbury’s has made great progress in 
delivering the Food First strategy as well as developing the Next Level 
Sainsbury's strategy, including operating model changes that will deliver 
further cost savings. The Committee agreed he had delivered his objectives 
fully and determined a payout of ten per cent (out of a possible ten per cent) 
for Simon Roberts.
During Bláthnaid Bergin’s first year as Chief Financial Officer, she has led the 
finance collaboration with the business to develop the Next Level Sainsbury’s 
strategy, including delivery of returns to shareholders through the progressive 
dividend policy and share buyback programme. The Committee agreed she 
had a strong year and determined a pay out of eight per cent (out of a possible 
ten per cent) for Bláthnaid Bergin.
This results in an overall bonus of 100 per cent of the maximum for Simon 
Roberts and 98 per cent of maximum for Bláthnaid Bergin. 
Long-term incentive plan – 2021 Win in Food
The 2021 Win in Food plan was aligned to the delivery of our Food First strategy 
and the eight key metrics that we used to track our progress. Because our senior 
leaders are integral to the delivery of the strategy, we made enhanced awards to 
c.230 colleagues who usually participate in the long-term incentive plan, as well 
as extending the eligible population to include a further 1,200 leaders (reverting 
to the standard eligibility for the 2022 and 2023 awards). Over the past three 
years, this award has galvanised our senior leaders behind the execution of our 
strategy, particularly those participating in the long-term incentive plan for the 
first time. This has had a material impact demonstrated by the strength of 
business performance over the period. 
Annual Statement from the Remuneration Committee Chair 
continued
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J Sainsbury plc Annual Report and Financial Statements 2024  101
For Executive Directors, 80 per cent of the plan was based on the four key 
financial measures (retail free cash flow, ROCE, EPS and cost savings). The 
remaining 20 per cent of the plan was subject to key strategic indicators 
(market share, customer, colleague and Plan for Better). This award vested 
at 70 per cent of maximum. 
This outturn is a result of strong retail free cash flow performance above the 
stretch target and ROCE, EPS and cost savings being part way through the 
performance range. Market share also outperformed the stretch target, with 
customer, colleague and Plan for Better part way through the performance 
range. The Committee had to make a performance assessment for the 
plastic and Scope 3 emissions due to market changes which impacted the 
targets and the assessment. Further detail is set out on pages 107 and 108.
Bláthnaid Bergin’s 2021 award was granted prior to her appointment to 
the Board and reflected her previous role. The plan structure that applied 
for colleagues at this grade was based on comparable objectives, but 
with different weightings to metrics. Bláthnaid Bergin’s award vested 
at 75 per cent of maximum in line with other participants.
2024/25 remuneration
When determining the pay review for Directors this year, the Committee 
again paid significant regard to the pay of the broader workforce and senior 
management. It awarded Simon Roberts and Bláthnaid Bergin a four per cent 
pay increase effective May 2024, taking their base salaries to £979,524 and 
£676,000 respectively. This is below the over nine per cent increase awarded 
to retail hourly-paid colleagues and in line with the pay increase awarded to 
other senior management roles. 
Following the launch of our updated Next Level Sainsbury’s strategy, we 
reviewed our incentive arrangement and determined the current long-term 
incentive plan structure drives the delivery of our future strategy and 
performance objectives. Following the success of the 2021 Win in Food 
incentive plan where, as outlined above, participants received enhanced 
awards and a broader population were included, we are proposing the same 
approach for 2024 only. Senior leaders play a vital role in leading colleagues 
across the business and delivering the next phase of our strategy and we 
want them fully aligned and incentivised to deliver our plans.
As outlined in February 2024 at the Capital Market’s Day, our eight key 
performance indicators remain the same and these will continue to be 
used to track the successful execution of the updated strategy. Therefore, 
the performance metrics will remain consistent with those currently used, 
but we have reviewed the weightings and targets to provide appropriate 
emphasis on key objectives and to drive performance delivery. We recently 
engaged our major shareholders and investor bodies in respect of the 
approach for 2024/25 and the Remuneration Committee and I are grateful 
for their engagement and valuable feedback which was considered before 
finalising our proposals.
The total weighting on the strategic indicators (market share, customer 
satisfaction, colleague engagement and Plan for Better) has been increased 
from 20 per cent to 30 per cent to recognise the importance of these areas in 
achieving our long-term strategic ambitions. To ensure that each of the four 
areas of focus have a sufficiently material weighting each has increased 
from five per cent to 7.5 per cent. The four financial metrics (EPS, cost 
savings, retail free cash flow and ROCE) will each have a weighting of 
17.5 per cent. 
In relation to the element linked to Plan for Better, the metrics have been 
simplified. Given the ongoing challenge across the market to get an agreed 
methodology to measure Scope 3 emissions, the 2024 long-term incentive 
plan will be linked to carbon Scope 1 targets only. The Scope 1 targets reflect 
a rephasing of our Scope 1 reduction initiatives over the next three years. 
We are still committed to our ambition to achieve net zero in our own 
operations by 2035. Investors are reminded that since January 2022, the 
Company has purchased all its electricity from renewable sources, which 
means our Scope 2 emissions are reported externally as zero. While we have 
simplified the ESG metric for long-term incentive purposes, the Committee 
recognises the breadth of our Plan for Better ambitions that are at the 
core of our new purpose. We are playing a leading role in creating a more 
sustainable food system in the UK to make good food available for everyone 
and the Committee will keep under review how these objectives are 
reflected in our incentive arrangements. 
The award level for the Chief Executive in 2024 will remain at 250 per cent of 
salary in line with the current shareholder-approved remuneration policy. 
Consistent with the approach taken for the enhanced 2021 award, the 
Committee has decided to make a modest increase to the Chief Financial 
Officer’s award level from 225 per cent to 250 per cent of salary in 2024 only. 
This award recognises the importance of Bláthnaid's contribution to the 
successful delivery of our updated strategy over the next three years. 
Closing remarks
In 2023, in line with UK reporting regulations, our Remuneration Policy was 
put to a binding vote at the AGM and we thank shareholders for their support 
in delivering a 99.12 per cent vote in favour. 
Over the next two pages there are summaries of the approach to remuneration 
in 2023/24 and 2024/25. We hope that the disclosure provided in this report 
provides clear insight into the Committee’s decisions and we look forward to 
receiving your support at the AGM.
The Remuneration Committee is committed to rewarding our Executive 
Directors for acting in the interest of all our stakeholders, including our 
shareholders, and for delivering results that are aligned with our Company’s 
purpose, strategy and values.
Jo Harlow
Chair, Remuneration Committee
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102  J Sainsbury plc Annual Report and Financial Statements 2024
Pay element
2023/24 decisions
Salary
Four per cent increase for 
Executive Directors 
(below that of colleagues)
•	 Chief Executive, Simon Roberts – £941,850 and Chief Financial Officer, Bláthnaid Bergin – £650,000
•	 A four per cent salary increase was awarded to Simon Roberts from 28 May 2023, which was below the ten per cent 
increase for retail hourly-paid colleagues, and in line with the pay review for senior management
•	 Bláthnaid Bergin commenced her role as CFO on 5 March 2023 on a salary of £650,000 and was not eligible for a 
salary increase
Annual bonus
Award of 100 per cent of 
maximum for CEO and 
98 per cent of maximum for CFO
•	 The 2023/24 bonus outturn was 100 per cent of the maximum for Simon Roberts and 98 per cent of the maximum for 
Bláthnaid Bergin
•	 The profit element paid out at 50 per cent (out of 50 per cent)
•	 The retail free cash flow element paid out at 20 per cent (out of 20 per cent)
•	 The Committee determined an outturn of ten per cent for the customer and colleague metrics (each out of ten per 
cent). Simon Roberts’ individual annual objectives paid out at ten per cent (out of ten per cent), resulting in an overall 
strategic scorecard outturn of 30 per cent (out of 30 per cent). Bláthnaid Bergin’s individual annual objectives paid out 
at eight per cent (out of ten per cent), resulting in an overall strategic scorecard outturn of 28 per cent (out of 30 per cent)
•	 Further details of the bonus measures and outturn can be found on pages 106 and 107
Long-Term Incentive Plan 
(LTIP): 2021 Win in Food
Vesting at 70 per cent of  
maximum
•	 Financial metrics (each with a 20 per cent weighting): maximum payout under the retail free cash flow element, 
with ROCE, EPS and cost reduction all part way through the range
•	 Strategic indicators (each with a five per cent weighting): maximum payout under the market share element, 
with customer, colleague and Plan for Better paying out midway through the range
•	 This results in a vesting multiplier of 2.8x (out of a maximum of 4.0) or 70 per cent of maximum
•	 Further detail on the outcomes is set out on pages 107 and 108
Total remuneration for 2023/24
Summary of 2023/24 remuneration decisions
Maximum opportunity
Actual % of maximum
Retail free cash flow
Market share
ROCE
Customer
EPS
Colleague
Cost reduction
Plan for Better
20%
20%
20%
12%
20%
10%
20%
13%
5%
5%
5%
3%
5%
4%
3%
5%
Salary
Benefits
Pension
Annual bonus
LTIP
Maximum opportunity
CEO bonus outturn
Actual % of maximum
Profit
Retail free cash flow
Strategic scorecard
50%
50%
20%
20%
30%
30%
2023/24
2022/23
£0
£1,000
£70
£67
£19
£17
£2,000
£3,000
£000s
£000s
£4,000
£5,000
£6,000
£933
£899
£2,054
£1,700
£1,836
Total £4,912
£2,534
Total £5,217
2023/24
£0
£500
£49
£19
£1,000
£1,500
£2,000
£2,500
£3,000
£650
£1,147
£518
Chief Financial Officer – Bláthnaid Bergin
Chief Executive – Simon Roberts
Total £2,383
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Summary of remuneration for 2024/25
Pay element
Executive Directors
Other colleague groups
Salary
•	 Chief Executive, Simon Roberts – £979,524 effective 26 May 
2024 (four per cent salary increase)
•	 Chief Financial Officer, Bláthnaid Bergin – £676,000 effective 
26 May 2024 (four per cent salary increase)
•	 Over nine per cent increase for retail hourly-paid colleagues
•	 Five per cent for front-line managers, reducing to 
four per cent for senior management
Benefits
•	 Includes colleague discount, life assurance (six times salary), 
company car cash allowance (or car), private medical cover and 
long-term disability insurance
•	 All colleagues are eligible for colleague discount and life 
assurance (six times salary if in pension plan or one times 
if not in a pension or in an auto-enrolled scheme)
•	 Eligibility for other benefits is dependent on grade
Retirement benefits
•	 Pension and/or cash supplement totalling 7.5 per cent of salary
•	 Participation in a pension plan is offered to all colleagues 
on a contributory basis, with the Company contribution 
varying by grade
•	 Retail hourly-paid colleagues and front-line managers are 
offered a matching scheme up to 7.5 per cent of salary
Annual bonus
•	 Performance is based on profit (50 per cent), retail free cash 
flow (20 per cent) and strategic scorecard (30 per cent)
•	 Bonus paid 50 per cent in cash after the year-end and 
50 per cent deferred into shares for two years
•	 Maximum opportunity of up to 250 per cent of salary 
per annum. For 2024/25:
	– Simon Roberts – 220 per cent of salary
	– Bláthnaid Bergin – 180 per cent of salary
•	 Retail and central management and central colleagues are 
eligible for an annual bonus and maximum opportunity 
varies by grade
•	 Annual bonus based on profit, retail free cash flow and 
personal performance
•	 For more senior grades part paid in cash, and part in 
shares deferred for two years
LTIP: 2024
Next Level incentive plan
•	 Awards are subject to a three-year performance period 
followed by a two-year retention period for Executive Directors
•	 The performance metrics remain unchanged and are fully 
aligned to our Next Level Sainsbury’s strategy
•	 Small rebalancing of weightings towards strategic indicators 
reflecting importance
•	 Maximum award of up to 250 per cent of salary per annum
•	 For 2024 awards:
	– Simon Roberts – 250 per cent of salary
	– Bláthnaid Bergin – 250 per cent of salary
•	 Top 230 managers usually participate in this plan
•	 Extended to a further 1,100 managers for 2024 only
•	 Maximum award varies by grade
Measure
Weighting
Threshold
Maximum
Underlying basic EPSa)
17.5%
21.3p
28.3p
Cumulative cost savings
17.5%
£800m
£1,100m
Cumulative retail free cash flowa)
17.5%
£1,500m
£1,800m
ROCEa)
17.5%
8.0%
11.0%
Strategic indicators
30%
Based on market share, customer satisfaction, colleague 
engagement and Plan for Better. Further details set out 
on pages 109 and 110
a)	 These measures are defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203  
Shareholding guidelines
•	 In-employment guidelines: Chief Executive – three times 
salary; Chief Financial Officer – two times salary
•	 Post-employment guidelines: Executive Directors are required 
to hold shares equivalent to their in-employment guideline for 
two years post departure. This requirement applies only to 
shares acquired from Company incentive plans
•	 In-employment guidelines apply to Operating Board 
Directors only
Recovery provisions
•	 The Executive Directors’ incentive arrangements are subject to 
malus and clawback
•	 Malus provisions apply for all senior leaders who are 
eligible for our LTIP
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104  J Sainsbury plc Annual Report and Financial Statements 2024
Our reward objectives
Our objective is to have a fair, equitable and competitive total reward package that encourages colleagues to deliver against our purpose and strategy, drives 
profitable sales and provides opportunities for colleagues to share in Sainsbury’s success.
Executive remuneration principles
The above reward objective applies to our senior executive population as well. The Committee believes it is important that a significant portion of the 
Executive Directors’ package is performance-related, delivered in shares and that the performance conditions applying to incentive arrangements support 
the delivery of the Company’s strategy and long-term shareholder value.
The Remuneration Policy for our senior executives is therefore based on the following principles:
Linking executive pay to our business strategy
The Committee carefully considers the performance metrics incorporated into the annual bonus and long-term incentive plan to ensure they support our 
strategic priorities. The annual bonus is linked to key financial and individual strategic objectives, while the long-term incentive plan rewards for delivery 
against our key strategic objectives and therefore includes all eight of the performance commitments that we use to track our success. Delivery of these 
commitments would support long-term sustainable performance and value creation for our shareholders.
Key considerations
When reviewing the Remuneration Policy for Executive Directors and determining the approach to pay, in line with the Code, the Committee gives 
consideration to the following:
•	 Simplicity and transparency: The Remuneration Policy has been designed to incentivise senior executives to achieve clearly defined financial, 
operational and strategic objectives. The Committee reviews performance metrics and targets each year to ensure that they continue to be clear 
and aligned to the delivery of the strategy
•	 Alignment to our purpose, values and culture: Sainsbury’s has a clear purpose and strong value set resulting in a unique culture which plays an 
essential role in achieving our strategy. Our culture is underpinned by our Purpose (our core reason for being); our Valued Behaviours (what we want 
from our people); and being a great place to work (encouraging colleagues to want to be their best). The Committee ensures our pay practices drive 
the right behaviours in line with our values and culture
•	 Risk mitigation: The Committee reviews and sets performance targets each year to ensure that they drive the right behaviours and are appropriately 
stretching without encouraging unnecessary risks. Under the annual bonus and LTIP the Committee has the ability to adjust incentive outcomes to 
ensure that they are reflective of the underlying financial and non-financial performance of the participants and the Company. The Committee 
believes that this discretion is an important feature and mitigates the risk of unwarranted vesting outcomes. In addition, in the event that certain risk 
events come to light the Committee may operate recovery provisions on all incentive awards
•	 Potential outcomes: When setting, and subsequently implementing, the policy for senior executives, the Committee considers our business goals, 
the retail market and competitors, the potential and actual outcome and cost to the Company, stakeholder views and best practice. The Committee 
believes it is important to exercise sound judgement at all stages during the process to ensure that executive pay levels appropriately reflect 
performance and are aligned with the interests of shareholders
Fair pay for colleagues
When considering remuneration arrangements for Executive Directors, the Committee takes into account the pay and conditions of colleagues at all 
levels throughout the Company. Remuneration Committee meetings start with an update on any reward changes and initiatives for colleagues across the 
business, particularly investment decisions for our hourly-paid colleagues, as well as relevant external updates such as changes to competitor pay rates. 
The Committee also reviews information on internal measures, including colleague listening, engagement surveys, details of our gender and ethnicity pay 
gaps and the ratio of Chief Executive remuneration to the remuneration of our colleagues, and considers how these compare externally.
Sainsbury’s employs over 148,000 colleagues who work hard to deliver for our customers. The Committee recognises that our colleagues are the cornerstone 
of our business and essential to the overall success of our plans. The remuneration objectives for our colleagues follow the same principles as the policy for 
the Executive Directors. Pay and benefits reflect the nature and contribution of the role and take into account levels of pay in comparable roles in the market.
Remuneration in context
Linked to 
our purpose and 
business strategy
Aligned to our values 
and culture
Encourages the 
right behaviours to 
deliver long-term 
sustainable growth
Secures high calibre 
leaders
Enables share 
ownership
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Reward and benefits
•	 All colleagues are entitled to base salary, pension and a range 
of benefits
•	 Managers participate in annual bonus plans which are aligned under 
a common set of principles
•	 Senior executives also participate in our Long-Term Incentive Plan. 
In 2024, this plan will be extended to an additional 1,100 colleagues 
including store managers of our biggest stores
•	 We offer colleague discount in Sainsbury’s, Argos, Tu and Habitat 
and during 2023/24 colleagues saved over £69 million – around £430 
on average
•	 In 2023/24, we continued to evolve our colleague discount offer, by 
enhancing Sainsbury’s discount from ten to 15 per cent every Friday 
and Saturday, enabling colleagues to plan their spending and access 
higher discount for their weekly shop
Recognition, development and wellbeing
•	 Being a place where colleagues love to work is crucial to the success 
of our business and we recognise colleagues who go the extra mile 
and bring our values to life through love it, our colleague 
recognition scheme
•	 During 2023/24 we issued over 300,000 recognition rewards worth 
over £3.4 million as well as giving additional gifts of appreciation 
with a value of £1 million
•	 We want to support colleagues in their career goals. During 2023/24 
we reviewed and updated a number of development programmes 
including one to support retail colleagues who want to take their 
first steps into front-line management and leadership roles
•	 Our Wellbeing agenda is sponsored by Clodagh Moriarty, our 
Chief Retail and Technology Officer, demonstrating the importance 
of our colleagues’ mental and physical wellbeing. We offer a 
range of support mechanisms, including an Employee 
Assistance Programme
Pensions and life assurance
•	 Participation in a pension plan is offered to all colleagues on a 
contributory basis, with the Company contribution varying by grade
•	 Retail hourly-paid colleagues are offered a matching scheme up to 
7.5 per cent of salary
•	 We have c. 101,000 colleagues in our pension plans
•	 Colleagues in our pension plans also receive six times life assurance 
(one times if not in a pension or in an auto-enrolled scheme)
Share ownership
•	 All colleagues have the opportunity to become shareholders in the 
Company through our all-employee share plans
•	 Around 21,000 colleagues participate in our Sharesave plans, 
representing an uptake rate of 15 per cent
•	 Colleagues can also participate in Sainsbury’s Share Purchase Plan 
(SSPP), which is our name for the partnership element of the Share 
Incentive Plan
Colleague engagement
•	 The Board recognises the important role our colleagues play in the 
success of Sainsbury’s. It takes colleague engagement and the views 
of colleagues seriously. We communicate regularly with colleagues 
to provide information about our strategy, our performance and on 
operational matters as well as asking for feedback on how 
colleagues are feeling. Further details are set out on page 24 of the 
Annual Report
•	 Our ‘Make it better together’ groups operate at store level rolling up 
to a national group (which is our Workforce Advisory Panel), which 
meets with Board members on a regular basis to discuss what is on 
colleagues’ minds. Whilst we do not formally consult with colleagues 
on the setting of the Executive Director Remuneration Policy, the 
Chair and the Remuneration Committee Chair engage with 
colleagues directly to talk about the way that executive pay is set 
and give colleagues the opportunity to share their views and 
opinions. The last listening session covering executive pay was held 
in July 2023 and the next one is in June 2024
•	 During the year we also introduced a new two-way discussion forum 
called Let’s Talk. This provides opportunities for any colleague to 
have a direct, open and honest conversation with the Chief Executive 
and other members of the Operating Board. These are held every 
month and streamed live
•	 Colleagues are able to become shareholders in the Company and can 
comment on the policy in the same way as other shareholders
CEO pay ratios
•	 Our CEO median pay ratio is 212:1. The 25th, 50th and 75th 
percentiles ranked by total remuneration are all retail hourly-paid 
colleagues reflecting the size and make up of our colleague base
•	 The Chief Executive’s total remuneration comprises a significant 
proportion of variable pay which will change each year depending 
on incentive outcomes
Gender and ethnicity pay
•	 Our colleagues are paid according to their role not their gender 
or ethnicity
•	 Our 2023 mean gender pay gap is 8.4 per cent (reduced from 8.5 per cent 
in 2022). Our median gender pay gap has increased slightly from 
6.3 per cent to 6.7 per cent. Like a lot of companies our gap is caused 
by the fact that we have more men than women in our most senior 
roles, more women than men in our hourly-paid roles, and more 
men in hourly-paid specialist roles that attract premiums, such 
as online delivery drivers
•	 The ethnicity pay gap shows the difference in the average hourly 
rate of pay of ethnically diverse colleagues compared to that of 
white colleagues. Our 2023 mean ethnicity pay gap is negative and 
has changed from -1.6 per cent to -2.9 per cent and our median 
ethnicity pay gap from -4.0 per cent to -5.4 per cent. Location plays 
a key part in explaining the gap, as a high proportion of our 
ethnically diverse colleagues work in our London stores and earn 
a location premium
•	 The Board is committed to improving gender and ethnically diverse 
representation. Our aim is to have 50 per cent of our Operating Board 
– which we have achieved from the start of the 2023/24 financial 
year – and 50 per cent of our Directors and Senior Managers to be 
women. We have made solid progress within our senior leadership 
population, of whom 46.6 per cent are women (up from 44.2 per cent 
last year). Our ethnically diverse representation within our senior 
leadership population has moved from 9.3 per cent to 10.1 per cent 
over the course of 2023/24
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106  J Sainsbury plc Annual Report and Financial Statements 2024
Single total figure of remuneration for Executive Directors (audited information)
The table below shows a single remuneration figure for all qualifying services for the 52 weeks to 2 March 2024, together with comparative figures for the 52 
weeks to 4 March 2023.
Notes
Simon Roberts
£000
Bláthnaid Bergin
£000
2023/24
2022/23
2023/24
Base salary
933
899
650
Benefits
a)
19
17
19
Pension
70
67
49
Total fixed pay
1,022
983
718
Annual bonus
b)
2,054
1,700
1,147
Long-term incentive plan
c)
1,836
2,534
518
Total variable pay
3,890
4,234
1,665
Total
4,912
5,217
2,383
a)	 Benefits include a combination of cash and non-cash benefits, valued at the taxable value. For all Executive Directors, this includes a cash car allowance (£15,250), private medical cover 
and taxable expenses.
b)	 Annual bonus relates to performance during the financial year, paid in May/June following the relevant year-end. Normally 50 per cent is paid in cash and 50 per cent in bonus shares which 
vest after two years.
c)	
The Long-Term Incentive Plan value relates to the award vesting in April/May following the end of the relevant financial year, which is the third year of the performance period. The awards 
are then subject to an additional two-year retention period for Executive Directors. Bláthnaid Bergin’s 2023/24 LTIP vesting relates to an award granted prior to her appointment as an 
Executive Director in March 2023, so is not subject to the two-year retention period. In the interests of transparency the full value has been included in the single figure table. The LTIP 
figures include accrued dividend equivalent shares over the performance period. The 2023/24 values are based on the average share price over the fourth quarter for 2023/24 of £2.785. 
The 2023/24 values shown above include the share price growth of the original award of: +£66k for Simon Roberts and +£19k for Bláthnaid Bergin. The 2022/23 LTIP figure has also been 
updated from the fourth quarter average share price to the actual share price on the vesting date of 28 April 2023 (£2.764). 
Base salary (audited information)
2023 Salary 
Simon Roberts (effective 28 May 2023)
£941,850
Bláthnaid Bergin (effective from appointment 5 March 2023)
£650,000
Pension
Simon Roberts receives 7.5 per cent of salary in lieu of pension plan participation. Bláthnaid Bergin receives a pension and cash supplement totalling 7.5 per cent 
of salary. This is in line with the majority of the wider workforce.
Benefits
For 2023/24, benefits for Executive Directors included the provision of company car benefits, private medical cover, long-term disability insurance, 
life assurance and colleague discount.
Annual bonus for 2023/24 (audited information)
For 2023/24 the maximum annual bonus award opportunity for the Chief Executive was 220 per cent of base salary and for the Chief Financial Officer the maximum 
opportunity was 180 per cent of base salary. Normally 50 per cent of any bonus is paid in cash and 50 per cent is paid in shares which are deferred for two years.
The performance measures for 2023/24 were profit (50 per cent), retail free cash flow (20 per cent) and a strategic scorecard (30 per cent comprising colleague, 
customer and individual objectives each being ten per cent).
After the end of the financial year the Remuneration Committee undertook a review of performance to determine annual bonus outcomes for Simon Roberts 
and Bláthnaid Bergin. As detailed below, the Committee identified that a bonus was payable to the Executive Directors. As in prior years the Remuneration 
Committee has sought to take a measured and rounded approach to performance assessment when determining incentive outcomes to ensure that they are 
fair and proportionate.
The following table summarises the final outcomes for the Executive Directors.
Outcome 
Simon Roberts 
Outcome 
Bláthnaid Bergin
(% of overall maximum)
£000 (% of overall maximum)
£000
Profit
50%
1,027
50%
585
Retail free cash flow
20%
411
20%
234
Strategic scorecard
30%
616
28%
328
Total
100%
2,054
98%
1,147
Profit performance
The table below sets out the threshold, target and stretch profit targets and the actual profit outcome.
Threshold 
(20% payable)
£m
Target 
(50% payable)
£m
Stretch 
(100% payable)
£m b)
Outcome
£m
Profita)
619
648
700
701
a)	 Underlying profit before tax. This measure is defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203.
b)	 The Committee revised upwards the top end of the range due to changes in market conditions and external guidance.
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Retail free cash flow
The table below sets out the threshold, target and stretch retail free cash flow targets and the actual outcome.
Threshold
(0% payable)
£m
Target
(50% payable)
£m
Stretch
(100% payable)
£m
Outcome
£m
Retail free cash flowa)
450
500
550
639
a)	 These measures are defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203.
Strategic scorecard
The strategic scorecard (30 per cent of the overall bonus) consists of customer, colleague and individual objectives, equally weighted.
The table below sets out a summary of the achievements of the Executive Directors in relation to these objectives as assessed by the Remuneration 
Committee. The Committee has determined an award of 30 per cent out of a possible 30 per cent for Simon Roberts and 28 per cent out of possible 30 per cent 
for Bláthnaid Bergin.
Shared objectives
Outturn
Customer
Delivered strongly for Sainsbury’s and Argos customers, demonstrated by significant gains in our overall customer 
satisfaction scores. Sainsbury's customer satisfaction is 7.5 percentage points ahead of the average of other 
full-choice competitors
Continued focus on delivering value for our customers, investing £220 million in 2023/24. Nectar Prices rolled out to 
over 7,000 products, saving customers £12 on an average £80 shop, and Aldi Price Match applies to over 600 products. 
Value perception has improved and is now the strongest it has been in six years
10% (out of 10%)
Colleague
Material increase in colleague engagement by 300 bps from an already strong baseline, with new high for inclusion 
score in our annual colleague feedback survey. Continue to make good progress against our gender and ethnically 
diverse representation at senior levels (see page 108), named a ‘The Times’ Top 50 Employer for Gender Equality for the 
second year and now have a 50:50 gender split on the Operating Board
10% (out of 10%)
Simon Roberts
Bláthnaid Bergin
Director-specific
Led the development of the Next Level strategy with 
the Operating Board, focused on improving value 
creation and driving shareholder returns over next 
three years. Next Level strategy communicated to 
shareholders in February 2024
Completed delivery of the Food First strategy, with 
record market share gains and volume growth over 
the last year
Delivered operating model changes which reduced 
structural costs by a further c. £350 million against a 
challenging macroeconomic backdrop, and completed 
the review of Financial Services
Extensive finance collaboration with the business to 
develop the Next Level Sainsbury’s strategy, including 
delivery of shareholder returns through the progressive 
dividend policy and share buyback programme
Led the review of the future operating model for 
Financial Services
Delivered phase 2 of the finance outsourcing 
programme and made good progress in embedding 
a new Controls Framework
Simon Roberts: 
10% (out of 10%)
Bláthnaid Bergin: 
8% (out of 10%)
2021 Win in Food incentive plan (2021/22 to 2023/24 performance period) (audited information)
The 2021 Long-Term Incentive Plan is known as the 2021 Win in Food incentive plan. This plan was launched following Simon Roberts’ appointment as 
Chief Executive in 2020 and our Food First strategy update.
Awards are granted under the Long-Term Incentive Plan approved by shareholders in 2016. A core award of shares is granted, calculated as a percentage 
of salary and scaled according to level of seniority. Vesting of the core award is dependent on performance against specific targets tested at the end of a 
three-year performance period. The core awards can grow up to four times at stretch levels of performance. For Executive Directors, any vested award is 
subject to a two-year retention period.
The 2021 Win in Food award was subject to the eight key performance indicators that we use to measure our success against our 2021 Food First strategy. 
For Executive Directors, the four financial metrics (retail free cash flow, ROCE, EPS and cost savings), were weighted at 20 per cent each, The four strategic 
indicators (market share, customer, colleague and Plan for Better) were weighted at five per cent each. In addition, a performance gateway had to be achieved 
before any element could vest. 
In terms of the financial metrics, there was strong retail free cash flow performance above the stretch target and ROCE, EPS and cost savings were part 
way through the performance range. Market share also outperformed the stretch target, with customer, colleague and Plan for Better part way through 
the performance range.
For the colleague metric, the Committee reviewed the colleague engagement score (which had increased over the three years) and the improvement in 
representation against the aspirational 2024 targets set (see table on page 108) and determined an overall colleague outcome of 80 per cent of max or 0.16x 
of the total multiplier.
For Plan for Better, the Scope 1 and 2, Scope 3 and plastics elements are each weighted at 1.67 per cent of the total award (a combined total of five per cent).
The Scope 1 and 2 targets were met in full and since January 2022 we have purchased all electricity from renewable sources, meaning we report our Scope 2 
emissions as zero. With the ongoing challenges across the market to get an agreed methodology to measure Scope 3 emissions, it was not possible to assess 
Scope 3 as originally intended. Therefore, the Committee considered a number of factors and data points to determine an appropriate outturn. While we have 
made progress in this area and retained our ‘A’ rating for CDP climate for the tenth consecutive year, there is still more to do and so the Committee 
determined an outcome of 45 per cent of max. 
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108  J Sainsbury plc Annual Report and Financial Statements 2024
2021 Win in Food incentive plan (2021/22 to 2023/24 performance period) (audited information) continued
As disclosed last year, it was necessary to adjust the approach to assessing plastic reduction. As a result of branded suppliers choosing to move to using 
recycled plastics, we no longer track performance against the targets originally set in 2021. Therefore, in line with the approach for the 2023 awards, the 
Committee assessed performance against own brand reduction targets. The Committee was satisfied that the amended assessment is in line with the 
principles of the original targets and that they were no easier to achieve. On this basis it determined an outturn of 32 per cent of max. 
This results in an overall outturn under the Plan for Better element of 60 per cent of max or 0.12x of the total multiplier.
Taking account of all eight metrics, this results in a performance multiplier of 2.8x (out of a possible 4.0) i.e. 70 per cent of the maximum for the 2021 award. 
The Committee reviewed the outcome of the awards in the context of performance and determined that it was appropriate.
The table below sets out the extent to which each performance measure was achieved for the Chief Executive.
Metric
Weighting
Sub-metric
Threshold target 
(1.0 x core award)
Maximum target 
(4.0 x core award)
Outcome
Multiplier achieved
Cumulative retail free cash flowa)
20%
 
£1,000m
£1,500m
£1,787m
0.80
ROCEa)
20%
 
6.75%
9.75%
 8.28%
0.50
EPSa)
20%
 
19.8p
26.5p
22.1p
0.41
Cost reduction
20%
 
80bps
280bps
182bps
0.51
Market share
5%
10.85%
11.24%
11.53%
0.20
Customer
5%
Sainsbury’s
300bps
900bps
590bps
0.14
 
Argos
210bps
510bps
540bps
Colleague
5%
Engagement
Maintain eSAT score
Met
0.16
 
Representation
See below
Partially met
Plan for Better
5%
 
See below
Partially met
0.12
Performance Gateway
The Remuneration Committee must be satisfied that the Company’s 
underlying performance over the period justifies the level of vesting
Achieved
 
Total 2.8x
 (out of a maximum of 4.0x)
a)	 These measures are defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203.
Colleague Representation Targets
 
Target – senior leadership 
positions (top 230 leaders)
Outcome
Target – senior management positions 
(1,200 leaders beneath senior leadership)
Outcome
Female
50%
46.6%
43%
40.7%
Ethnically Diverse
12%
10.1%
12%
10.6%
Black
3%
3.2%
3%
1.2%
Plan for Better Targets
 
Threshold
Stretch
Outcome
Scope 1 and 2 – GHG emissions
761,991 tC02e
705,870 tC02e
458,973 tC02e
Scope 3 – GHG emissions
24,503,081 tC02e
23,996,773 tC02e
See text above
Own brand plastic packaging reduction
59,363 tonnes
48,887 tonnes
58,379 tonnes
The 2021 award granted to Bláthnaid Bergin was in respect of her previous role prior to her appointment to the Board. This award has been included in the 
Directors’ Remuneration Report in the interests of transparency. For participants at this level, while the metrics and targets were broadly comparable to the 
approach for Executive Directors, the weightings were different. This award vested at 3.0x (out of a possible 4.0) i.e. 75 per cent of maximum and will be 
released in April 2024 consistent with the other below Board participants.
Recovery provisions 
The Remuneration Committee may operate recovery provisions (malus and clawback) on all incentive awards. The Committee may reduce or cancel an 
unvested award, or impose further conditions on an unvested award in the event of material mis-statement of financial results, serious reputational damage, 
serious misconduct, fraud, or other cases of extreme failure where the Committee considers such adjustment to be warranted. 
In addition, in the circumstances outlined above, the Committee may clawback incentives, by requiring an Executive Director to make a repayment in 
relation to bonus payments and share awards. This provision would apply for up to two years following the end of the relevant performance period.
No recovery provisions were applied during the last financial year.
Annual Report on Remuneration continued
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J Sainsbury plc Annual Report and Financial Statements 2024  109
Shareholding guidelines (audited information)
The Executive Directors are required to build up a specified level of 
shareholding in the Company. This is to create greater alignment of the 
Directors’ interests with those of shareholders, in line with the objectives 
of the Remuneration Policy.
The guidelines in the 2023 Directors’ Remuneration Policy require the 
Chief Executive to have a holding of three times salary and other 
Executive Directors to hold shares with a value of two times salary.
Executive Directors are required to hold all vested share awards (net of 
tax) until the guideline has been met. In addition to shares held, Bonus 
Share Awards and LTIP awards where the performance period has ended, 
as well as dividend equivalents accruing on LTIP awards once the 
performance period has ended, count towards the guideline (on a net of 
tax basis).
Simon Roberts was appointed in 2020 and has met his guideline. 
Bláthnaid Bergin was appointed at the start of 2023/24 financial year and 
holds 1.1x salary, as at the end of the financial year.
Post-departure, Executive Directors will be expected to maintain a 
shareholding equal to their guideline (or actual shareholding if lower) for 
two years post-employment irrespective of the reason for leaving. This 
requirement will apply to shares acquired from Company incentive plans. 
Remuneration in 2024/25
Base salary
When considering salaries the Committee takes account of a number of 
factors, with particular focus on the general level of salary increases 
awarded throughout the Company. Where relevant, the Committee also 
considers external market data on salary and total remuneration but the 
Committee applies judgement when considering such data.
For 2024/25 Simon Roberts and Bláthnaid Bergin will receive a four per cent 
salary increase. This is below the over nine per cent award to retail 
hourly-paid colleagues and in line with senior management.
2024 Salary 
(effective 26 May 2024)
Simon Roberts 
£979,524
Bláthnaid Bergin
£676,000
Pension
Simon Roberts receives 7.5 per cent of salary in lieu of pension plan 
participation. Bláthnaid Bergin receives a pension and cash supplement 
totalling 7.5 per cent. This is in line with the majority of the wider workforce.
Benefits
Benefits for Executive Directors in 2024/25 are unchanged and will include 
the provision of company car benefits, private medical cover, long-term 
disability insurance, life assurance and colleague discount.
Annual bonus
The annual bonus for 2024/25 will operate on the same basis as 2023/24.
It will be based 50 per cent on profit, 20 per cent on retail free cash flow and 
30 per cent on strategic objectives (equally weighted between customer, 
colleague and individual objectives). The colleague element will include 
colleague engagement and improvement of our gender and ethnically 
diverse representation at senior levels.
The maximum annual bonus award opportunity for the Chief Executive is 
220 per cent of base salary and for the Chief Financial Officer is 180 per cent 
of base salary. 50 per cent will be paid in cash and 50 per cent in shares 
deferred for two years.
The profit and retail free cash flow targets are set against the Company’s 
expected performance and are subject to a rigorous process of challenge 
before the proposals are considered by the Board. The targets are set 
considering external forecasts and stretching performance in excess of 
internal forecasts is required for a maximum payout. The strategic 
objectives ensure that management continues to focus on operational 
priorities which contribute to the achievement of Group performance over the 
short and long term.
The Board is of the opinion that any performance targets for the current year 
annual bonus are commercially sensitive as the Company operates in a highly 
competitive, consumer-facing sector. The disclosure of targets would provide 
competitors with insights into the Company’s strategic aims, budgeting and 
growth projections. However, in line with previous years, the Company will 
retrospectively disclose the targets in next year’s Annual Report.
2024 Next Level incentive plan
During the year, we reviewed our incentive arrangements and determined 
the current long-term incentive plan structure supports the delivery of our 
strategy. As outlined in our February 2024 strategy update, our eight 
performance commitments are broadly consistent with those set for the 
Food First strategy and used in the Win in Food incentive plan. Therefore, 
the same eight metrics will be included in the 2024 Next Level incentive 
Plan. However, we reviewed the weightings and targets to ensure 
appropriate emphasis and to drive performance delivery of the updated 
strategy. We consulted shareholders regarding our proposals and considered 
their feedback before finalising our approach.
The total weighting on the strategic indicators (market share, customer 
satisfaction, colleague engagement and Plan for Better) has been increased 
from 20 per cent to 30 per cent to recognise the importance of these areas in 
achieving our long-term strategic ambitions. To ensure that each of the four 
areas of focus have a sufficiently material weighting each has increased 
from five per cent to 7.5 per cent. The four financial metrics (EPS, cost savings, 
retail free cash flow and ROCE) will each have a weighting of 17.5 per cent. 
The Committee has set stretching targets against these measures for the 
2024 awards as shown overleaf. 
For 2024, the Plan for Better metric has been simplified and will focus solely 
on Scope 1 emissions. Our Scope 2 emissions are reported as zero and, given 
the ongoing challenge across the market to establish an agreed methodology 
to measure Scope 3, we will not be including a Scope 3 metric. We will, 
however, keep this under review. While we have simplified the ESG metric 
for long-term incentive purposes, the Committee recognises the breadth 
of the Plan for Better ambitions that are at the core of our new purpose.
0
250
500
750
1,000
1,250
1,500
1,750
Shareholding guidelines
Simon Roberts
Bláthnaid Bergin
Share awards 
Shareholding
Guideline
4.2 x salary
1.1 x salary
Number of shares (000)
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Financial Statements

110  J Sainsbury plc Annual Report and Financial Statements 2024
Annual Report on Remuneration continued
2024 Next Level incentive plan continued
The award level for the Chief Executive will be unchanged for 2024. Simon Roberts will receive a maximum award of 250 per cent of salary. For the reasons 
outlined in the Remuneration Committee Chair’s letter, in 2024 Bláthnaid Bergin will receive a maximum award of 250 per cent of salary.
The Next Level incentive plan is subject to a two-year retention period following the end of the three-year performance period. This will result in awards 
to Executive Directors being released after a five-year period.
Weighting
Threshold 25% of element vests
Maximum 100% of element vests
Financial metrics
Underlying basic EPSa)
17.5%
21.3p
28.3p
Cumulative cost savings
17.5%
£800m
£1,100m
Cumulative retail free cash flowa)
17.5%
£1,500m
£1,800m
ROCEa)
17.5%
8.0%
11.0%
Strategic indicators
Market shareb)
7.5%
Targets are commercially sensitive but we will disclose targets at the end of the performance period
Customer satisfaction
7.5%
0bps improvement against Company CSAT score 200bps improvement against Company CSAT score
Colleague engagement
7.5%
-200 bps vs strong 2023 score
+300 bps vs strong 2023 score
Plan for Better – Scope 1
7.5%
433,733 tC02e absolute GHG emissions
354,872 tC02e absolute GHG emissions
a)	 These measures are defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203.
b)	 From 2024/25 the Group’s provider of market share data has been changed from Nielsen to Kantar. This will be reflected in the market share targets for all in flight awards with the 
Committee ensuring that the revised targets are of comparable stretch to the original targets.
In line with previous grants, the Remuneration Committee must be satisfied that the Company’s underlying performance over the period justifies the level of 
vesting; vesting will be reduced if this is not the case. When making this judgement the Committee has scope to consider such factors as it deems relevant. 
The Committee believes that this discretion is an important feature of the Long-Term Incentive Plan arrangement and mitigates the risk of unwarranted 
vesting outcomes. This performance gateway assessment applies to all outstanding LTIP awards.
2024 Next Level Incentive Plan performance measures
(definitions for other awards can be found in the relevant Annual Report)
EPS
•	 	EPS directly reflects returns generated for shareholders
•	 Underlying basic EPS is underlying profit after tax attributable to the 
equity holders of the parent, divided by the weighted average number 
of ordinary shares in issue during the year
Cumulative cost savings
•	 Cumulative cost savings represents cost reductions over the 
performance period as a result of identified initiatives. This is a key 
long-term measure which is fundamental to delivering returns to 
shareholders
Cumulative retail free cash flow
•	 Retail free cash flow measures the total flow of cash in and out of the 
business as well as providing an assessment of underlying profitability
•	 	Retail free cash flow for these purposes is net cash generated from 
retail operations, after cash capital expenditure but before strategic 
capital expenditure and exceptional cash flows to and from Financial 
Services. It includes payments of lease obligations and cash flows from 
joint ventures and associates. It is measured on a cumulative basis 
over the three-year performance period
Return on capital employed (ROCE)
•	 ROCE represents the total capital that the Group has utilised in order to 
generate profits. Management use this to assess the performance of 
the business
•	 It is defined as return divided by average capital employed where:
•	 Return is defined as 52-week rolling underlying profit before interest 
and tax
•	 Capital employed is defined as Group net assets excluding pension 
deficit/surplus, less net debt
•	 The average is calculated on a 14-point basis – the prior year closing 
capital employed, the current year closing capital employed, and 12 
intra-year periods, as this more closely aligns to the recognition of 
amounts in the income statement
Market share
•	 Sainsbury’s market share (volume) based on Kantar panel data 
Customer
•	 Based on Company CSAT (excluding Bank and Tu)
Colleague
•	 Colleague engagement is measured using our annual We’re Listening 
survey
Plan for Better
•	 Absolute, market-based, Scope 1 GHG emissions, which includes our 
direct emissions from heating, refrigerant gas and owned delivery 
vehicles/logistics fuel
  More information can be found in the Alternative Performance Measures 
section of the Annual Report on pages 199 to 203.
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  111
Non-Executive Director remuneration
Single total figure of remuneration for Non-Executive Directors (audited information)
The table below shows a single remuneration figure for all qualifying services for the 52 weeks to 2 March 2024 for each Non-Executive Director, together with 
comparative figures for the 52 weeks to 4 March 2023.
2023/24
2022/23
Fees a)
£000
Benefits b)
£000
Total
£000
Fees a)
£000
Benefits b)
£000
Total
£000
Martin Scicluna
512
1
513
493
0
493
Jo Bertramc)
73
0
73
47
1
48
Brian Cassin
93
0
93
83
0
83
Jo Harlow
93
1
94
89
0
89
Adrian Hennah
93
0
93
90
0
90
Tanuj Kapilashrami
73
0
73
70
0
70
Keith Weedd)
93
13
106
83
0
83
a)	 Paid in relation to the year. Fees were set 29 May 2022 and 28 May 2023.
b)	 The benefits for the Non-Executive Directors relate to the reimbursement of travelling expenses to Board meetings held at the Company’s registered office.
c)	
Jo Bertram joined the Board on 7 July 2022 and the figures quoted for 2022/23 relate to the period from her appointment to 4 March 2023. 
d)	 Keith Weed’s expenses relate to a four year period. 
In 2023 the Chair and Non-Executive Directors’ fees were reviewed and an 
increase of four per cent was approved in line with senior management 
colleagues. The Chair fee increased to £516,914 and the base fee for 
Non-Executive Directors increased to £73,466. Senior Independent Director 
and Committee Chair fees increased from £19,500 to £20,280. The new fee 
levels were effective from 28 May 2023.
Non-Executive Directors receive a base annual cash fee; additional fees are 
paid to the Senior Independent Director and to the Chairs of the Audit, 
Remuneration and Corporate Responsibility and Sustainability Committees.
The Chair and Non-Executive Directors receive no benefits other than a 
colleague discount card and reasonable business travel expenses.
Chair and Non-Executive Director fees for 2024/25
In 2024 the Chair and Non-Executive Directors’ fees were reviewed and an 
increase of four per cent was approved in line with senior management 
colleagues. The following table sets out the fee levels which are effective 
from 26 May 2024.
Fees effective from 26 May 2024
Chair
£537,591
Base fee
£76,405
Senior Independent Director fee (additional)
£21,091
Chair of Remuneration Committee fee (additional)
£21,091
Chair of Audit Committee fee (additional)
£21,091
Chair of Corporate Responsibility and Sustainability 
Committee fee (additional)
£21,091
Non-Executive Directors’ shareholdings and share interests
The beneficial interest of the Non-Executive Directors, in the shares of the 
Company are shown below.
Ordinary sharesa)
4 March 2023
2 March 2024
24 April 2024
Martin Scicluna
15,000
15,000
15,000
Jo Bertram
8,000
8,000
8,000
Brian Cassin
25,000
25,000
25,000
Jo Harlow
8,000
8,000
8,000
Adrian Hennah
15,000
15,000
15,000
Tanuj Kapilashrami
10,500
10,500
10,500
Keith Weed
2,446
2,446
2,446
a)	 Ordinary shares are beneficial holdings which include the Directors’ personal holdings 
and those of their spouses and minor children.
Pay in the wider organisation
Chief Executive pay ratio
The following table provides pay ratio data in respect of the Chief Executive’s 
total remuneration (as shown in the single figure table on page 106 
compared to the remuneration of the 25th, 50th and 75th percentile of UK 
colleagues). All three of these colleagues are retail hourly-paid colleagues, 
with the 50th percentile and the 75th percentile colleague earning additional 
premiums such as unsociable hours premium and bakers’ premium.
The Chief Executive’s total remuneration comprises a significant proportion 
of variable pay which will change each year depending on incentive 
outcomes. The decline in the CEO pay ratio year-on-year is driven by the 
investment in retail hourly-paid colleagues.
Financial year
Method
25th percentile 
pay ratio
(lower quartile)
50th percentile 
pay ratio
(median)
75th percentile 
pay ratio
(upper 
quartile)
2019/20
Option Ba)
173:1
173:1
153:1
2020/21b)
Option Ba)
122:1
122:1
107:1
2021/22
Option Ba)
202:1
183:1
178:1
2022/23
Option Ba)
247:1
229:1
218:1
2023/24
Option Ba)
227:1
212:1
202:1
a)	 Option B as defined in the regulations.
b)	 Change in Chief Executive impacted single figure and resulting pay ratio.
The colleagues used to calculate the pay ratios were identified using our 
2023 gender pay gap data. In line with the regulations, our 2023 gender pay 
gap data identifies employees using a snapshot date of 5 April 2023. This 
method has been chosen as it makes use of our gender pay data, which 
provided a readily available and robust dataset.
A full-time equivalent total pay figure was calculated for each of these 
colleagues using the single figure methodology. The approach includes base 
salaries, pension contributions and any relevant pay premiums. To ensure 
these three colleagues were a suitable representative of their quartile, the 
total pay figures calculated were compared against a sample of colleagues 
either side of the three identified colleagues.
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Financial Statements

112  J Sainsbury plc Annual Report and Financial Statements 2024
Annual Report on Remuneration continued
Pay in the wider organisation continued
Chief Executive pay ratio continued
The following table provides base salary and total remuneration information in respect of the 25th, 50th and 75th percentile colleagues, on a full-time 
equivalent basis.
Financial year
Remuneration
Chief Executive
25th percentile pay ratio
(lower quartile)
50th percentile pay ratio
(median)
75th percentile pay ratio
(upper quartile)
2023/24
Base salary
£933,000
£21,021
£22,454
£23,569
Total remuneration
£4,912,000
£21,685
£23,160
£24,282
The Remuneration Committee considers pay ratios as one of many reference points when reviewing executive remuneration and considers that the median 
pay ratio for 2023/24 is consistent with the pay, reward and progression policies for the Company. Due to the nature of the role of the Chief Executive, the 
Committee believes that it is important for a significant portion of the Chief Executive’s remuneration package to be performance-related and aligned to the 
long-term, sustainable success of the Company. As a result, the Chief Executive’s single figure fluctuates each year depending on the Company’s performance 
and the outturns of the incentive plans and this will impact the pay ratio reported in any single year.
Percentage change in Executive and Non-Executive Director remuneration
The table below shows the percentage change in the salary, benefits and bonus of Executive and Non-Executive Directors compared with the percentage 
change in the average of each of those components of pay for all our colleagues, over the past four years.
Percentage change in remuneration
from 2019/20 – 2020/21
Percentage change in remuneration
from 2020/21 – 2021/22
Percentage change in remuneration
from 2021/22 – 2022/23
Percentage change in remuneration
from 2022/23 – 2023/24
Salary
% change
Benefits
% change 
Bonus
% change
Salary
% change
Benefits
% change 
Bonus
% change
Salary
% change
Benefits
% change 
Bonus
% change
Salary 
% change
Benefits 
 % change
Bonus 
% change
Simon Roberts
N/A
N/A
N/A
0.0%
42.7%
N/A
2.7%
-29.2%
1.5%
3.9%
12.4%
20.8%
Bláthnaid Bergina)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Martin Scicluna
1.1%
0.0%
N/A
0.0%
0.0%
N/A
2.7%
0%
N/A
3.9%
N/A
N/A
Jo Bertramb)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
3.9%
-100%
N/A
Brian Cassinc)
1.1%
0.0%
N/A
0.0%
0.0%
N/A
22.1%
0.0%
N/A
12.0%
0.0%
N/A
Jo Harlowc)
2.8%
-100%
N/A
0.0%
0.0%
N/A
7.2%
0.0%
N/A
4.9%
N/A
N/A
Adrian Hennahc)
N/A
N/A
N/A
N/A
N/A
N/A
18.4%
-100%
N/A
3.7%
0.0%
N/A
Tanuj Kapilashrami
N/A
N/A
N/A
0.0%
0.0%
N/A
2.9%
0.0%
N/A
3.9%
0.0%
N/A
Keith Weedc)
N/A
N/A
N/A
0.0%
0.0%
N/A
22.1%
0.0%
N/A
12.0%
N/A
N/A
All colleaguesd)
4.0%
-15.3%
308.1%
-1.2%
-21.9%
5.2%
7.6%
-6.6%
-5.4%
15.3%
0.8%
30.2%
a)	 Bláthnaid Bergin was appointed to the Board on 5 March 2023 so there is no year-on-year comparison.
b)	 Jo Bertram joined the Board on 7 May 2022. Jo’s 2022/23 fee has been annualised to provide a more meaningful comparison for 2023/24.
c)	
Year-on-year changes in Non-Executive Director fee levels will be impacted by responsibility and Committee membership changes during the year.
d)	 All colleague figures relate to averages based on number of full-time equivalent colleagues. These comparisons will be materially impacted by the grade mix of colleagues. 
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  113
Relative importance of spend on pay
The table below illustrates the year-on-year change in total colleague pay (being the aggregate staff costs as set out in note 9 to the financial statements) 
and distributions to shareholders (being declared dividends).
Colleague pay
Distribution to shareholders
2022/23
£m
2023/24
£m
% change
2022/23
£m
2023/24
£m
% change
3,578
3,879
8.4%
319
306
-4.1%
Performance and Chief Executive remuneration
The graph shows the TSR performance of an investment of £100 in J Sainsbury plc shares over the last ten years compared with an equivalent investment in 
the FTSE 100 Index. The FTSE 100 Index has been selected to provide an established and broad-based index. The graph also includes data for the FTSE All-Share 
Food & Drug Retailers Index. The Company is a constituent of both indices. The table details the total remuneration for the Chief Executive over this period. 
TSR performance since March 2014
 
 
Chief Executive
2014/15 a)
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21 b)
2021/22
2022/23
2023/24
Single figure 
remuneration (£000)
S Roberts
— 
— 
— 
— 
— 
— 
1,325
3,599
5,217
4,912
M Coupe
1,507
2,802
2,354
3,630
3,569
2,999
1,447
—
—
—
J King
405
—
—
—
—
—
—
—
—
—
Bonus/Bonus Shares/
Deferred Share Award 
award as a percentage 
of maximum
S Roberts
—
—
—
—
—
— 
0%
87%
86%
100%
M Coupe
26%
78%
35%
57%
56%
22%
0%
—
—
—
J King
0%
—
—
—
—
—
—
—
—
—
LTIP vesting 
percentage of 
maximum
S Roberts
— 
— 
— 
— 
— 
—
60%
70%
77.5%
70%
M Coupe
0%
0%
22.5%
42.5%
55%
65%
60%
—
—
—
J King
0%
—
—
—
—
—
—
—
—
—
a)	 For 2014/15, Justin King’s figures relate to the time he was Chief Executive Officer and, consistent with the single figure table, the figures for Mike Coupe relate to the whole of 2014/15; he 
was Chief Executive Officer from 9 July 2014.
b)	 For 2020/21, Simon Robert’s figures relate to the time he was Chief Executive Officer during 2020/21 and, consistent with the single figure table, the figures for Mike Coupe relate to the time 
up until his departure on 2 July 2020.
Governance – the Remuneration Committee
Committee membership
The Remuneration Committee during the year comprised of Jo Harlow (Chair), Tanuj Kapilashrami and Adrian Hennah. All members of the Committee are 
independent Non-Executive Directors.  
Tim Fallowfield, Company Secretary and Corporate Services Director, acts as secretary to the Committee. Martin Scicluna, Simon Roberts, Prerana Issar 
(Chief People Officer, since appointment in May 2023) and previously Angie Risley (Group HR Director until she left the Operating Board in May 2023), the 
Director of Reward and the Director of Group Finance are invited to attend Committee meetings either fully or partially. The Committee considers their views 
when reviewing the remuneration of the Executive Directors and Operating Board Directors. Individuals who attend Remuneration Committee meetings are 
not present when their own remuneration is being determined.
The Committee typically holds four scheduled meetings a year and meets more often as required. The Committee has a calendar of standard items within its 
remit and in addition it held in-depth discussions on specific topics during the year. In 2023/24 there were five unscheduled meetings, regarding changes to 
the Operating Board and the incentive review. The Committee complies with relevant regulations and considers the Code and best practice when determining 
pay and policy.
Sainsbury’s
200
150
100
50
0
Mar-14
Mar-15
Mar-16
Mar-17
Mar-18
Mar-19
Mar-20
Mar-21
Mar-22
Mar-23
Mar-24
FTSE 100
FTSE All-Share Food & Drug Retailers
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114  J Sainsbury plc Annual Report and Financial Statements 2024
Annual Report on Remuneration continued
Governance – the Remuneration Committee continued
Advisers to the Remuneration Committee
The Committee is authorised by the Board to appoint external advisers if it considers this beneficial. Over the course of the year, the Committee was 
supported by its appointed advisers, Deloitte LLP (Deloitte).
Deloitte were reappointed by the Committee as advisers in 2013 following a competitive tender. Deloitte are members of the Remuneration Consulting Group 
and, as such, operate under the Code of Conduct in relation to executive remuneration consulting in the UK. During the year, the Committee reviewed the 
advice provided by Deloitte and has confirmed that it has been objective and independent. The Committee has also determined that the Deloitte partner who 
provides remuneration advice to the Committee does not have any connections with the Company that may impact their independence. The Committee has 
reviewed the potential for conflicts of interest and judged that there were appropriate safeguards against such conflicts.
During the year Deloitte provided advice to the Committee on a range of topics including remuneration trends, corporate governance, incentive plan design 
and incentive plan rules. Their consultants attended all of the Committee meetings. In relation to their advice, Deloitte received fees of £89,400 (fees are 
based on hours spent). During the year, Deloitte provided the Company with unrelated advice and consultancy in respect of information technology, 
operating models, data analytics and taxation.
Statement of voting at general meeting
The table below sets out the votes on the Annual Report on Remuneration and the Directors’ Remuneration Policy at the 2023 AGM. The Committee is keen to 
hear the views of all shareholders and continually reviews the Remuneration Policy and its implementation.
Votes for
Votes against
Votes abstained
Remuneration Report (2023 vote)
98.84%
1,757 million
1.16%
21 million
—
21 million
Remuneration Policy (2023 vote)
99.12%
1,782 million
0.88%
16 million
—
0.2 million
Directors’ contracts
Executive Directors have rolling contracts which are terminable on 12 months’ notice by either party. Non-Executive Directors are appointed for an initial 
three-year period, which may be extended for a further term by mutual consent. The initial appointments and any subsequent reappointments are subject to 
annual election or re-election by shareholders. Non-Executive Directors’ appointments may be terminated at any time by giving three months' written notice 
by either party; six months in the case of the Non-Executive Chair.
Executive Directors’ shareholdings and share interests (audited information)
The table below sets out details of the Executive Directors’ shareholdings and a summary of their outstanding share awards at the end of the 2023/24 
financial year. Further details of the movements of the Executive Directors’ share awards are set out on page 117.
Ordinary sharesa)
Scheme interestsb)
5 March 2023
2 March 2024
24 April 2024
Bonus Share
Awards c)
LTIP awards
with 
performance
period
completed d)
LTIP awards
with
 performance
period
outstanding e)
SAYE
Simon Roberts
608,965
726,455
726,455
674,969
954,156
2,664,880
1,833
Bláthnaid Bergin
0
160,370
160,370
161,317
79,155
931,118
0
a)	 Ordinary shares are beneficial holdings which include the Directors’ personal holdings and those of their spouses and minor children. They also include the beneficial interests in shares 
which are held in trust under the Sainsbury’s Share Purchase Plan.
b)	 Long-Term Incentive awards are structured as nil-cost options.
c)	
Relates to 2022 and 2023 Bonus Share Awards.
d)	 Relates to 2020 Future Builder awards. Notional dividends are added for LTIP awards where the performance period has ended.
e)	
Relates to 2021 Win in Food award, 2022 Leaders’ Share Award and 2023 Leaders’ Share Award (maximum) where the performance period has not ended. As noted above, following the 
year-end, the 2021 Win in Food award will vest at 70 per cent of maximum.
Note: The Executive Directors are potential beneficiaries of the Company’s Employee Benefit Trust, which is used to satisfy awards under the Company’s employee share plans, and they are 
therefore treated as interested in the 30.1 million shares (2023: 37.3 million) held by the Trustees.
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J Sainsbury plc Annual Report and Financial Statements 2024  115
Share awards made during the financial year (audited information)
The following share awards were made to Executive Directors during the year.
Scheme
Basis of award 
(maximum)
Face value
Percentage vesting at 
threshold
performance
Number of shares
Performance period
end date
Simon Roberts
2023 Leaders’ Share
Award a)
250% of salary
£2,354,625
25% of each 
element
862,500
28 February 2026
Bonus Share Award b)
93.9% of salary
£850,035
N/A
311,368
N/A
Bláthnaid Bergin
2023 Leaders’ Share
Award a)
225% of salary
£1,462,500
25% of each 
element
535,714
28 February 2026
Bonus Share Award b) Relates to previous 
role prior to Board 
appointment
£217,625
N/A
79,716
N/A
a)	 The performance conditions applying to 2023 Leaders’ Share Award are set out later in this section. The basis of award shows the maximum value. The award was made on 2 June 2023 
and the number of shares has been calculated using the average share price between 26 May and 1 June 2023 of £2.730. Subject to performance, the award will vest in May 2026 and 
will be released after a further two-year retention period. The award is structured as a nil-cost option with an exercise period of up to six years from grant.
b)	 The Bonus Share Award was made on 2 June 2023 based on performance over the 2022/23 financial year. The award was made at 86 per cent of the maximum level (maximum of 220 per cent 
of salary for Simon Roberts). Bláthnaid Bergin’s award was made based on her eligibility prior to becoming an Executive Director. The number of shares has been calculated using the 
average share price between 26 May and 1 June 2023 of £2.730. No further performance conditions apply. The Bonus Share Awards will be released in March/April 2025.
Unvested Long-Term Incentive Plan awards
The targets for Long-Term Incentive Plan awards granted in 2022 and 2023 are set out in the tables over the next two pages.
2022 Leaders’ Share Award
(2022/23 to 2024/25 performance period)
Weighting
Threshold
(1.0x core award)
Maximum
(4.0x core award)
Cumulative retail free cash flowa)
20%
£1,250m
£1,650m
ROCEa)
20%
6.75%
9.75%
Underlying basic EPSa)
20%
19.8p
26.5p
Cost reductionb)
20%
80bps improvement
280bps improvement
Strategic indicators
20%
(equally weighted)
•	 Market share – targets are commercially sensitive but we intend to provide full 
disclosure of targets at the end of the performance period
•	 Customer satisfaction – improvement of 0 to 200 bps in Sainsbury’s score and 300 
to 500 bps in Argosc)
•	 Colleague – progress against our existing 2024 representation targets (see page 108) 
and assessment of further representation improvements in 2025. Maintain 
colleague engagement scores
•	 Plan for Better – progress against our Scope 1 and Scope 3 and plastic reduction 
targets (see below)d)
a)	 These measures are defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203.
b)	 Improvement assessed against 2019/20 results due to the COVID-19 impact on 2020/21 and 2021/22.
c)	
From 2023 we are using a new combined Sainsbury’s and Argos customer satisfaction measure. Therefore, the Committee will need to consider the potential impact of these measurement 
changes on outstanding awards.
d)	 Our Scope 2 GHG emissions are reported as zero as we use 100 per cent renewable electricity and therefore this is not included in the LTIP. In relation to Scope 3, as with the 2021 Win In 
Food incentive plan, the Committee will consider a number of factors and data points to determine an appropriate outturn. 
Plan for Better targets
Baseline
Threshold
Stretch
Scope 1 – GHG emissions
554,936 (tCO2e) 18/19 FY
382,403
345,258
Scope 3 – GHG emissions
26,663,081 (tCO2e) 18/19 FY
23,783,081
23,108,004
Plastic – Own Brand Food & General Merchandise & Clothing – 
tonnes of plastic packaging
69,839 Own Brand Food 2018 CY/
GM&C 2020 CY
55,871
41,903
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116  J Sainsbury plc Annual Report and Financial Statements 2024
Annual Report on Remuneration continued
Unvested Long-Term Incentive Plan awards continued
2023 Leaders’ Share Award
(2023/24 to 2025/26 performance period)
Weighting
Threshold 
(25% of element vests)
Maximum
(100% of element vest)
Cumulative retail free cash flowa)
20%
£1,350m
£1,650m
ROCEa)
20%
7.0%
10.0%
Underlying basic EPSa)
20%
20.0p
27.0p
Cumulative cost savings
20%
£750m
£1,250m
Strategic indicators
20%
(equally weighted)
•	 Market share – targets are commercially sensitive but we intend to 
provide full disclosure of targets at the end of the performance period
•	 Customer satisfaction – improvement of 0 to 200 bps in Company 
CSAT score
•	 Colleague – range of -1 to -4 vs strong 2022 score
•	 Plan for Better – progress against our Scope 1 and Scope 3 and plastic 
reduction targets (see below)
a)	 These measures are defined in the Alternative Performance Measures section of the Annual Report on pages 199 to 203.
Plan for Better targets
Baseline
Threshold
Stretch
Scope 1 – Absolute GHG emissions within our own operations
554,936 (tCO2e) 18/19 FY
354,971
308,539
Scope 3 – GHG emissions – suppliers with SBTi 1.5oC net zero target approved
Less than 2% of emissions 
22/23FY
50%
80%
Plastic – Own Brand Food, General Merchandise & Clothing – 
tonnes of plastic packaging
69,839 Own Brand Food 2018 CY/
GM&C 2020 CY
52,379
34,920
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J Sainsbury plc Annual Report and Financial Statements 2024  117
Details of the Executive Directors’ share awards and movements
The table below shows the conditional awards granted and exercised under each of the Company’s share plans.
Name
Award
Date of award
Share price 
at grant (£)
Original share 
options 
awarded
Options 
lapsed
Total share 
options
Dividends d)
Options 
exercised 
during the
year
Remaining
share 
options
Share price on 
exercise
(£)
Date of 
exercise
Notional 
gain 
on exercise
(£000) e)
Simon 
Roberts
Long-Term 
Incentive 
Plana)
09/05/2019
(Part 2)
2.194
256,092
76,828
179,264
37,065
216,329
0
2.835 05/05/2023
613
07/05/2020
(Part 1)
1.991
512,580
115,331
397,249
79,827
0
477,076
—
—
—
07/05/2020
(Part 2)
1.991
512,584
115,332
397,252
79,828
0
477,080
—
—
—
04/06/2021
2.670
819,288
0
819,288
0
0
819,288
—
—
—
01/06/2022
2.303
983,092
0
983,092
0
0
983,092
—
—
—
02/06/2023
2.730
862,500
0
862,500
0
0
862,500
—
—
—
Bonus Share 
Awardb)
01/06/2022
2.303
363,601
0
363,601
0
0
363,601
—
—
—
02/06/2023
2.730
311,368
0
311,368
0
0
311,368
—
—
—
Sharesavec)
10/12/2019
N/A
3,040
—
3,040
—
3,040
0
2.764 28/04/2023
4
14/12/2020
N/A
1,833
—
1,833
—
—
1,833
—
—
—
Total
4,625,978
307,491 4,318,487
196,720
219,369
4,295,838
617
Bláthnaid 
Bergin
Long-Term 
Incentive 
Plana)
09/05/2019
(Part 2)
2.194
76,352
22,906
53,446
11,048
64,494
0
2.835 05/05/2023
183
07/05/2020
(Part 1)
1.991
85,052
19,137
65,915
10,141
76,056
0
2.835 05/05/2023
216
07/05/2020
(Part 2)
1.991
85,052
19,137
65,915
13,240
0
79,155
—
—
—
04/06/2021
2.670
215,640
0
215,640
0
0
215,640
—
—
—
01/06/2022
2.303
179,764
0
179,764
0
0
179,764
—
—
—
02/06/2023
2.730
535,714
0
535,714
0
0
535,714
—
—
—
Bonus Share 
Awardb)
07/05/2021
2.413
70,331
0
70,331
7,190
77,521
0
2.835 05/05/2023
220
01/06/2022
2.303
81,601
0
81,601
0
0
81,601
—
—
—
02/06/2023
2.730
79,716
0
79,716
0
0
79,716
—
—
—
Conditional 
Share Awardf)
07/05/2020
1.991
85,054
0
85,054
0
85,054
0
2.835 05/05/2023
241
Total
1,494,276
61,180 1,433,096
41,619
303,125
1,171,590
860
a)	 The LTIP share figures relate to the maximum that could be achieved for awards.
b)	 Bonus Share Awards are after the application of performance conditions. Simon Roberts waived his 2020/21 bonus and therefore no Bonus Shares were awarded. 
c)	
Sharesave is an all-employee share option plan and has no performance conditions as per HMRC Regulations. The option price for the Sharesave schemes shown were: 2019 – £1.610 and 
2020 – £1.610.
d)	 Dividends includes notional dividends accrued on LTIPs where the performance period has finished.
e)	
This is the notional gain on the date of exercise had all shares been sold.
f)	
Bláthnaid Bergin was awarded a Conditional Share Award in May 2020 prior to appointment as an Executive Director. No performance conditions applied to this award. 
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Financial Statements

118  J Sainsbury plc Annual Report and Financial Statements 2024
Additional statutory information
Additional statutory information required by the Accounts Regulations can be found below:
Directors’ interests
The beneficial interests of the Directors and their connected persons in the shares of the Company are shown on pages 111 
and 114. During the year, no Director had any material interest in any contract of significance to the Group’s business.
Directors’ indemnities
The Company maintains a Directors’ and Officers’ liability insurance policy which provides appropriate cover for legal 
action brought against its Directors. The Company has also executed deeds of indemnity for each of its Directors, to the 
extent permitted by law and the Company’s Articles of Association. These indemnities were in force throughout the 
financial year and as at the date of this report.
Qualifying third-party indemnity provisions (as defined by section 234 of the Companies Act 2006) are in force, to the 
extent permitted by law, for the benefit of the Directors in relation to certain losses and liabilities incurred in connection 
with the execution of their powers, duties and responsibilities.
Research and development
In the ordinary course of business, the Company regularly develops new products and services. See page 12 to 14 for 
more information.
Employment policies
The Company values the different perspectives, experiences and abilities of all our colleagues. We ensure that those living 
with a disability or long-term health condition are fully and fairly considered for employment with the Company through 
well-developed policies for the equal treatment of all. We have a workplace adjustments process in place for our colleagues 
who find themselves with a disability or long-term health condition; workplace adjustments can be made at any point 
during a colleague’s employment with us. We are committed to providing equal opportunities for all colleagues and 
applicants through recruitment, training, development and promotion. Further information can be found on pages 18 to 21.
Health and safety
The health and safety of our colleagues and customers is an essential part of our business operations. See page 19 for 
more information.
Colleague engagement
Details on how we engage with our colleagues can be found on page 24.
Political donations
The Company made no political donations in 2023/24 (2022/23: £nil).
Post balance sheet events
There were no material events after the balance sheet date requiring disclosure.
Financial risk management and 
financial instruments
Notes 28 and 29 on pages 167 to 177 disclose details relating to financial risk management and financial instruments.
Disclosure of information to the 
auditor
Each Director has confirmed that, so far as each Director is aware, there is no relevant audit information of which the 
auditor is unaware. Each Director has taken all steps that they ought to have taken as a Director in order to make 
themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 
For further information, please see the Statement of Directors’ responsibilities on page 123.
Dividends
Details of the payment of the final dividend can be found on page 156.
Ordinary shares
Details of the changes to the ordinary issued share capital during the year are shown on page 165. As at 19 April 2024, 
2,377,776,903 ordinary shares of 28 4/7 pence have been issued, are fully paid up and are listed on the London Stock Exchange.
Share capital
Except as described below in relation to the Company’s employee share plans, there are no restrictions on the voting 
rights attaching to the Company’s ordinary shares or the transfer of securities in the Company; no person holds securities 
in the Company carrying special rights with regard to control of the Company; and the Company is not aware of any 
agreements between holders of securities that may result in restrictions in the transfer of securities or voting rights. 
Further details of the rights, restrictions and obligations attaching to the share capital of the Company, including voting 
rights, are contained in the Company’s Articles of Association. The Articles of Association may only be changed with the 
agreement of shareholders.
Shares acquired for the Company’s employee share plans by the trustees rank pari passu with shares in issue and have 
no special rights. Where, under the Company’s All Employee Share Ownership Plan, participants are beneficial owners 
of the shares but the trust is the registered owner, the voting rights are normally exercised by the trustee of the plan 
at the direction of the participants. All shares held by the J Sainsbury Employee Share Ownership Trust are held on an 
unallocated basis. As such, the trustee waives their rights to vote and to receive dividends on these shares. Total dividends 
waived by the trustee during the financial year amounted to £3,839,821.99. Some of the Company’s employee share plans 
include restrictions on the transfer of shares while the shares are held within the plan.
At the Annual General Meeting held in July 2023, the Company was authorised by shareholders to purchase its own shares 
within certain limits and as permitted by the Articles of Association. The Company made no purchases of its own shares 
during the financial year.
Change of control
All of the Company’s employee share plans contain provisions relating to a change of control. On a change of control, options 
and awards granted to employees under the Company’s share plans may vest and become exercisable, subject to the 
satisfaction of any applicable performance conditions at that time.
A number of the Company’s financing arrangements contain change of control clauses under which lenders may cancel 
their commitments and declare all outstanding amounts immediately due and payable. There are no other significant 
agreements that would take effect, alter or terminate upon a change of control following a takeover bid.
Strategic Report
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  119
Major interests in shares
As at 2 March 2024, the Company had been notified by the following 
investors of their interests in 3 per cent or more of the Company’s shares. 
These interests were notified to the Company pursuant to DTR5 of the 
Disclosure Guidance and Transparency Rules:
Date notified
Number of 
ordinary shares
% of voting
rights a)
Qatar Holdings LLC
5 May 2021
335,446,132
14.99
VESA Equity Investment 
S.à r.l.
4 March 2022
234,887,363
10.07
BlackRock, Inc.
28 December 2023
149,530,300
6.29
Schroders plc
31 March 2021
116,161,658
5.22
Bestway Group UK Limited 13 October 2023
118,273,900
4.99
Pzena Investment 
Management, Inc
29 January 2021
104,292,488
4.69
a)	 Percentages shown are as a percentage of the Company’s issued share capital when the 
Company was notified of the change in holding.
As at 22 April 2024, no further changes had been notified.
Directors’ Report
The Directors’ Report comprises pages 1 to 121 of this Annual Report and 
Financial Statements. The following information required by Rule 9.8.4R of 
the UK Listing Rules (LR) is also incorporated into the Directors’ Report:
Information requirement
Location within Annual Report
Interest capitalised
See note 14 of the 
consolidated financial 
statements
Publication of unaudited financial information
See note 28
Details of any long-term incentive plans
See Remuneration Report, 
Remuneration Policy and 
note 35
Shareholder waiver of dividends
See note 27
Shareholder waiver of future dividends
See note 27
Other information requirements set out in LR 9.8.4R are not applicable to 
the Company.
Streamlined Energy and Carbon Reporting – 2023/2024 
Annual Overview
J Sainsbury plc has been tracking and publicly disclosing its carbon dioxide 
and other greenhouse gas (GHG) emissions since 2005. Our emissions 
measurements are accompanied by a series of ambitious targets approved 
by the Science Based Targets initiative. By 2030, Sainsbury’s commits to 
reducing Scope 1 and 2 emissions by 68 per cent and reducing absolute 
Scope 3 (energy/ industrial/ transport) emissions from purchased goods and 
services, upstream transportation and distribution and use of sold products 
by 50.4 per cent. This target aligns with the aim of limiting global warming 
to 1.5°C, as outlined in the Paris Agreement.
Methodology
Sainsbury’s has conducted emission calculations and reporting aligning 
with the GHG Protocol Corporate Accounting and Reporting Standard 
(revised edition), utilising emission factors from the UK Government’s GHG 
Conversion Factors for Company Reporting 2023. We are also separately 
evaluating the performance of Sainsbury’s, Argos, and Habitat emissions, 
in addition to assessing the overall Group performance. Our emissions 
reporting encompasses all mandatory sources as outlined by the Companies 
Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013. The 
reporting period spans the financial year 2023/24, consistent with the 
timeframe covered by the Annual Report and Financial Statements. 
The scope of this GHG inventory covers the UK and Ireland. GHG inventory 
boundaries are established utilising the operational control approach. 
Scope 1 emissions include stationary combustion, mobile combustion, and 
refrigerants. Scope 2 emissions are reported using both the location-based 
method and the market-based method. Scope 2 emissions comprise 
purchased electricity, on-site renewable energy (solar and wind), and 
Power Purchase agreements with wind farms. Purchased electricity 
includes consumption from corporate contracts, non-operational sites 
which are vacant and contracts with other suppliers whereby the landlords 
are not reporting on electricity consumption themselves. For all corporate 
contract electricity and gas consumption, half-hourly data was used where 
possible, to increase the overall accuracy.
In 2023/24, 100 per cent of electricity is sourced from renewable sources 
(a combination of energy sourced directly from on-site solar and wind, 
Power Purchase agreements with UK wind farms, as well as certificate-
backed renewable electricity from the UK, Northern Ireland, and the 
Republic of Ireland).
The following report compares Scope 1 and 2 Greenhouse gas emissions 
for 2023/24 and 2022/23.
UK and Global Annual Energy and Carbon
Sainsbury's Group Total Carbon Figures and Intensities
The following report compares Scope 1 and Scope 2 Greenhouse gas 
emissions for 2023/24 and 2022/23.
Sainsbury’s Group Total Carbon Figures and Intensities
GHG emissions (tCO2e) – location-based emission source
2023/24
2022/23
Scope 1
458,972.65
461,692.37
Scope 2
247,142.54
234,397.43
Total (tCO2e)a)
706,115.19
696,089.80
S1 and 2 Intensity measurement (tCO2e/’000 sq. ft.)
25.09
25.23
GHG emissions (tCO2e) – market-based emission source
2023/24
2022/23
Scope 1
458,972.65
461,692.37
Scope 2
—
—
Total (tCO2e)a)
458,972.65
461.692.37
S1 and 2 Intensity measurement (tCO2e/’000 sq. ft.)
16.3
17.08
a)	 This data has been subject to assurance this year and last year by ERM Certification 
and Verification Services Limited, in accordance with the International Standard on 
Assurance Engagements ISAE 3000 (Revised) ‘Assurance Engagements other than 
Audits or Reviews of Historical Financial Information’ issued by the International 
Auditing and Standards Board.
b)	 2022/23 electricity data has been updated this year to include improved data available 
for the last period of the year.
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120  J Sainsbury plc Annual Report and Financial Statements 2024
The table below represents Sainsbury’s energy use and associated GHG emissions from electricity and fuel in the UK for the reporting years 2022/23 and 
2023/24 in line with UK Government Streamlined Energy and Carbon Reporting requirements. 
Sainsbury’s breakdown
UK locations
Energy consumption kWh
Location-based (tCO2e)
Market-based (tCO2e)
Emission source
2022/23
2023/24
2022/23
2023/24
2022/23
2023/24
Combustion of fuel and 
operation of facilities (Scope 1)
1,419,488,269.53
1,377,579,244.63
 399,009.45
 403,057.23
 399,009.45
 403,057.23
Electricity, heat, steam and cooling 
purchased for own use (Scope 2)
1,168,052,581.00
1,156,234,413.08
 221,101.17
 233,869.42
—
—
Total
2,587,540,850.53
2,533,813,657.71
 620,110.62
 636,926.65
 399,009.45
 403,057.23
Argos and Habitat Breakdown
UK locations
Energy consumption kWh
Location-based (tCO2e)
Market-based (tCO2e)
Emission source
2022/23
2023/24
2022/23
2023/24
2022/23
2023/24
Combustion of fuel and operation of 
facilities (Scope 1)
 267,876,532.86
 238,394,880.35
 62,491.85
 55,847.67
 62,491.85
 55,847.67
Electricity, heat, steam and cooling 
purchased for own use (Scope 2)
 59,229,411.91
 60,767,536.10
 11,416.63
 12,583.46
—
—
Total
 327,105,944.77
 299,162,416.45
 73,908.48
 68,431.13
 62,491.85
 55,847.67
Global locations (excludes UK)
Energy consumption kWh
Location-based (tCO2e)
Market-based (tCO2e)
Emission source
2022/23
2023/24
2022/23
2023/24
2022/23
2023/24
Combustion of fuel and operation of 
facilities (Scope 1)
 1,046,760.04
 371,070.12
 191.08
 67.75
 191.08
 67.75
Electricity, heat, steam and cooling 
purchased for own use (Scope 2)
 5,404,344.85
 2,176,894.96
 1,879.63
 689.66
—
—
Total
 6,451,104.89
 2,547,965.08
 2,070.71
 757.41
 191.08
 67.75
Dual emissions reporting
Overall emissions have been presented to reflect both location and market-based methodologies, affecting both Scope 1 and Scope 2 emissions. 
Scope 1: All Scope 1 emissions have been calculated using UK Government’s GHG Conversion Factors for Company Reporting 2023 for all sources. 
Scope 2: All Scope 2 Location based emissions have been calculated using UK Government’s GHG Conversion Factors for Company Reporting 2023. 
Market‑based electricity is covered by either a Power Purchase agreement with UK wind farms, certificate-backed renewable electricity or falls within 
on-site renewable generation from wind and solar energy.
Energy efficiency statement
During 2023/24, Sainsbury’s has demonstrated its commitment to reducing the energy consumption of its operations by implementing the following energy 
efficiency initiatives:
Electricity consumption
We are in our 13th year of Project Graphite, a dedicated programme focused on reducing carbon, energy consumption and costs. capital was allocated to the 
following initiatives during the year:
•	 The installation of additional on-site solar PV on new and existing stores and a continued programme of optimising existing solar PV systems.
•	 A number of energy efficiency projects have taken place including:
	– Heating and ventilation optimisation and Voltage Optimisation,
	– The installation of ‘Air Doors’ to mitigate air infiltration
	– Trialling the next generation of LED lighting.
	– We continue our programme of Engineering Innovation, reviewing and trialling the latest technology to support in achieving net zero by 2035.
We continue to deliver the most efficient new stores through the installation of highly efficient Zero Carbon technology.
Additional statutory information continued
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J Sainsbury plc Annual Report and Financial Statements 2024  121
Refrigeration
We continue to replace refrigeration systems that use HFC refrigerant gas with more efficient alternatives that use natural refrigerants – CO2, along with 
installing fridge doors.
Natural Gas
We continue to remove natural gas heating, installing Refrigeration Integrated Heating and Cooling (RIHC) systems, which takes the residual heat generated 
by the refrigeration units and uses this for space heating around the store to meet the heating demand. This removes the need to use fossil fuels as the 
systems will use electricity instead of gas.
Delivery vehicles
To further support our transition from diesel to a zero-carbon fleet, we have been building on our previous R&D projects, which mapped out the transition of 
our grocery online delivery fleet to EV by 2035. We are working with manufacturers to test electric vehicles within our fleet, investing in EV infrastructure in 
our London Nine Elms store as a test bed for these trials. We have also rolled out a new routing system which has resulted in significant mileage reductions 
compared to previous routing algorithms.
Logistics:
We have seen a reduction in fuel usage, in part due to the purchase of new fleet which is more fuel efficient. We have also increased our driver training programme. 
Tim Fallowfield OBE
Company Secretary and Corporate Services Director 
24 April 2024 
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122  J Sainsbury plc Annual Report and Financial Statements 2024
123 	 Statement of Directors’ Responsibilities
124	 Independent Auditor’s Report to the Members of J Sainsbury plc
Consolidated Financial Statements
132	 Consolidated income statement
133	 Consolidated statement of comprehensive income/(loss)
134	 Consolidated balance sheet
135	 Consolidated statement of changes in equity
136	 Consolidated cash flow statement
137	 Notes to the consolidated financial statements
Company Financial Statements 
194	 Company balance sheet
195	 Company statement of changes in equity
196	 Notes to the Company financial statements
Additional information
199	 Alternative performance measures (APMs)
204	 Additional shareholder information
206	 Glossary
Financial Statements
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J Sainsbury plc Annual Report and Financial Statements 2024  123
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual Report and Financial 
Statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each 
financial year. Under that law, the Directors have prepared the Group 
financial statements in accordance with UK-adopted international 
accounting standards and the Company financial statements in accordance 
with United Kingdom Generally Accepted Accounting Practice, comprising 
FRS 101 ‘Reduced Disclosure Framework’ (United Kingdom Accounting 
Standards and applicable law). 
Under Company law the Directors must not approve the financial 
statements unless they are satisfied that they give a true and fair view of 
the state of affairs of the Group and the Company and of the profit or loss of 
the Group for that period. In preparing the financial statements, the 
Directors are required to:
•	 select suitable accounting policies and then apply them consistently;
•	 make judgements and accounting estimates that are reasonable 
and prudent;
•	 state whether applicable UK-adopted international accounting standards, 
international financial reporting standards and UK Accounting standards 
comprising FRS 101, have been followed by the Group and Company, 
respectively, subject to any material departures disclosed and explained 
in the financial statements; and 
•	 prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the Group and the Company will continue 
in business.
The Directors are responsible for keeping adequate accounting records that 
are sufficient to show and explain the Group’s and the Company’s 
transactions and disclose with reasonable accuracy at any time the financial 
position of the Company and the Group and enable them to ensure that the 
financial statements and the Directors’ Remuneration Report comply with 
the Companies Act 2006. They are also responsible for safeguarding the 
assets of the Company and the Group and hence for taking reasonable steps 
for the prevention and detection of fraud and other irregularities. 
The Directors are responsible for the maintenance and integrity of the 
Company’s website. Legislation in the United Kingdom governing the 
preparation and dissemination of financial statements may differ from 
legislation in other jurisdictions. 
Each of the Directors, whose names and functions are listed in the 
Governance Report, confirms that, to the best of their knowledge:
•	 the financial statements, which have been prepared in accordance with 
the relevant financial reporting framework give a true and fair view of 
the assets, liabilities, financial position and profit of the Group and 
Company; and
•	 the Strategic Report contained in the Annual Report and Financial 
Statements include a fair review of the development and performance of 
the business and the position of the Group, together with a description of 
the emerging and principal risks and uncertainties that it faces; and
•	 the Annual Report and Financial Statements, taken as a whole, are fair, 
balanced and understandable and provide the information necessary for 
shareholders to assess the Group’s position and performance, business 
model and strategy.
By order of the Board
Tim Fallowfield OBE
Company Secretary and Corporate Services Director
24 April 2024 
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124  J Sainsbury plc Annual Report and Financial Statements 2024
Independent Auditor’s Report  
to the Members of J Sainsbury plc
Opinion
In our opinion:
•	 J Sainsbury plc’s Group financial statements and Parent Company 
financial statements (the “financial statements”) give a true and fair view 
of the state of the Group’s and of the Parent Company’s affairs as at 
2 March 2024 and of the Group’s profit for the 52 week period then ended;
•	 the Group financial statements have been properly prepared in 
accordance with UK adopted international accounting standards; 
•	 the Parent Company financial statements have been properly prepared 
in accordance with United Kingdom Generally Accepted Accounting 
Practice; and
•	 the financial statements have been prepared in accordance with the 
requirements of the Companies Act 2006.
We have audited the financial statements of J Sainsbury plc (the “Parent 
Company”) and its subsidiaries (the “Group”) for the 52 week period ended 
2 March 2024 which comprise:
Group
Parent company
Consolidated balance sheet as at 2 
March 2024
Balance sheet as at 2 March 2024
Consolidated income statement for 
the period then ended
Statement of changes in equity for the 
period then ended
Consolidated statement of 
comprehensive income for the 
period then ended
Related notes 1 to 8 to the financial 
statements including material 
accounting policy information
Consolidated statement of changes 
in equity for the period then ended
Consolidated statement of cash 
flows for the period then ended
Related notes 1 to 39 to the financial 
statements, (except for the sections 
marked as “unaudited” in Note 28) 
including material accounting 
policy information
The financial reporting framework that has been applied in the preparation 
of the Group financial statements is applicable law and UK adopted 
international accounting standards. The financial reporting framework that 
has been applied in the preparation of the Parent Company financial 
statements is applicable law and United Kingdom Accounting Standards, 
including FRS 101 “Reduced Disclosure Framework” (United Kingdom 
Generally Accepted Accounting Practice).
Basis for opinion 
We conducted our audit in accordance with International Standards on 
Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those 
standards are further described in the Auditor’s responsibilities for the audit 
of the financial statements section of our report. We believe that the audit 
evidence we have obtained is sufficient and appropriate to provide a basis 
for our opinion.
Independence
We are independent of the Group and Parent Company in accordance with 
the ethical requirements that are relevant to our audit of the financial 
statements in the UK, including the FRC’s Ethical Standard as applied to 
listed public interest entities, and we have fulfilled our other ethical 
responsibilities in accordance with these requirements. 
The non-audit services prohibited by the FRC’s Ethical Standard were not 
provided to the Group or the Parent Company and we remain independent 
of the Group and the Parent Company in conducting the audit. 
Conclusions relating to going concern 
In auditing the financial statements, we have concluded that the directors’ 
use of the going concern basis of accounting in the preparation of the 
financial statements is appropriate. Our evaluation of the directors’ 
assessment of the Group and Parent Company’s ability to continue to 
adopt the going concern basis of accounting included: 
•	 Confirming our understanding of the directors’ going concern 
assessment process.
•	 Assessing the adequacy of the going concern assessment to 24 April 2025 
and considering the existence of any significant events or conditions 
beyond this period.
•	 Verifying going concern model inputs against board-approved forecasts.
•	 Reviewing borrowing facility documentation to confirm availability to the 
Group through the going concern period and verifying that management 
had appropriately identified and assessed financial covenant compliance.
•	 Assessing management’s forecasting process and the consistency of the 
assessment with information obtained from other areas of the audit, such 
as accounting estimates.
•	 Testing the assessment, including forecast liquidity under base and 
downside scenarios, for clerical accuracy.
•	 Assessing whether assumptions made (such as future costs including the 
impact of inflation and forecast margin) were reasonable with reference 
to information obtained elsewhere in the audit and, in the case of 
downside scenarios, appropriately severe in light of the Group’s relevant 
principal risks and uncertainties and whether climate risk may materially 
impact the going concern assessment.
•	 Additional consideration was given to the impact of the phased withdrawal 
from the core banking business, considering the downside scenarios 
modelled by management including potentially adverse impacts of 
customer behaviour as well as the timing of repayment of external 
funding, as part of the assessment of the Group’s liquidity forecasting.
•	 Challenging the amount and timing of identified mitigating actions 
available to respond to a ‘severe but plausible’ downside scenario, and 
whether those actions are feasible and within the Group’s control.
•	 Performing independent sensitivity analysis on assumptions to assess 
the impact on headroom.
•	 Performing reverse stress testing in order to identify and understand 
which factors and how severe the downside scenarios would have to be to 
result in the Group utilising all liquidity or breaching a financial covenant 
during the going concern period.
•	 Assessing the appropriateness of going concern disclosures. 
Our key observations
In management’s base case and downside scenarios, there is significant 
headroom without taking into consideration the benefit of any 
identified mitigations.
Based on the work we have performed, we have not identified any material 
uncertainties relating to events or conditions that, individually or collectively, 
may cast significant doubt on the Group and Parent Company’s ability to 
continue as a going concern for the period to 24 April 2025. 
In relation to the Group and Parent Company’s reporting on how they have 
applied the UK Corporate Governance Code, we have nothing material to add 
or draw attention to in relation to the directors’ statement in the financial 
statements about whether the directors considered it appropriate to adopt 
the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to 
going concern are described in the relevant sections of this report. However, 
because not all future events or conditions can be predicted, this statement 
is not a guarantee as to the Group’s ability to continue as a going concern.
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J Sainsbury plc Annual Report and Financial Statements 2024  125
Overview of our audit approach
Audit scope
•	 We performed an audit of the complete financial 
information of 15 components and audit 
procedures on specific balances for a further 
10 components.
•	 The components where we performed full or 
specific audit procedures accounted for 96% of 
Profit before tax, 100% of Revenue and 96% of 
Total assets.
Key audit matters
•	 Accounting and reporting for the group’s phased 
withdrawal from the core banking business
•	 Supplier arrangements
•	 Aspects of revenue recognition
•	 Measurement of provision for impairment of 
loans and advances to financial services 
customers
•	 Valuation of defined benefit pension 
scheme assets
•	 IT environment
Materiality
•	 Overall Group materiality of £35 million which 
represents 5.0% of Profit before tax, adjusted for 
non-recurring items.
An overview of the scope of the Parent Company 
and Group audits 
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our 
allocation of performance materiality determine our audit scope for each 
component within the Group. Taken together, this enables us to form an 
opinion on the consolidated financial statements. We take into account size, 
risk profile, the organisation of the Group and effectiveness of group-wide 
controls, changes in the business environment, the potential impact of 
climate change and other factors such as recent Internal audit results when 
assessing the level of work to be performed at each component.
In assessing the risk of material misstatement to the Group financial 
statements, and to ensure we had adequate quantitative coverage of 
significant accounts in the financial statements, of the 98 reporting 
components of the Group, we selected 25 components covering entities 
within the UK, which represent the principal business units within the Group.
Of the 25 components selected, we performed an audit of the complete 
financial information of 15 components (“full scope components”) which 
were selected based on their size or risk characteristics. For the remaining 10 
components (“specific scope components”), we performed audit procedures 
on specific accounts within that component that we considered had the 
potential for the greatest impact on the significant accounts in the financial 
statements either because of the size of these accounts or their risk profile. 
The table below shows the coverage obtained from the work performed by 
our audit teams. Scoping changes from the prior year are not significant;
Number of 
components
Group Profit before 
Tax a)
% 
Group Revenue
% 
Total assets
%
2023/24 2022/23 2023/24 2022/23 2023/24 2022/23
Full scope
15
69%
73%
99%
99%
77%
84%
Specific scope
10
27%
24%
1%
1%
19%
15%
Full and specific 
scope coverage
25
96%
97%
100%
100%
96%
99%
Remaining 
components
73
4%
3%
0%
0%
4%
1%
Total reporting 
components
98
100%
100%
100%
100%
100%
100%
a)	 as measured on an absolute basis.
The audit scope of these specific scope components may not have included 
testing of all significant accounts of the component but will have 
contributed to the coverage of significant accounts tested for the Group.
Of the remaining 73 components that together represent 4% of the Group’s 
Profit before tax as measured on an absolute basis, none are individually 
greater than 2% of the Group’s Profit before tax on an absolute basis. For 
these components, we performed other procedures, including analytical 
review, testing of consolidation journals and intercompany eliminations to 
respond to any potential risks of material misstatement to the Group 
financial statements.
Involvement with component teams 
In establishing our overall approach to the Group audit, we determined the 
type of work that needed to be undertaken at each of the components by us, 
as the primary audit engagement team, or by component auditors from 
other EY global network firms operating under our instruction. Of the 15 full 
scope components, audit procedures were performed on 12 of these directly 
by the primary audit team and on 3 by EY component teams in Edinburgh 
and London. For the 10 specific scope components, work was performed by 
the primary audit team on 4 components and on 6 components by EY 
component teams in Edinburgh and London. For the full and specific scope 
components where the work was performed by component auditors, we 
determined the appropriate level of involvement to enable us to determine 
that sufficient audit evidence had been obtained as a basis for our opinion 
on the Group as a whole.
During the current year’s audit cycle, the Senior Statutory Auditor visited 
Edinburgh to discuss and direct the audit approach of the component team, 
meet with members of local management and attend planning meetings 
with a particular focus on the impact of the strategic review of the Financial 
Services division on the component audit approach. The Primary team, 
based in London, met regularly with the London component team 
throughout the year end audit. Virtual visits were also performed to 
Edinburgh at the year end, using video technology and our virtual audit 
software, meeting with members of local management, attending closing 
meetings, reviewing relevant working papers, including in response to the 
risk areas for which component teams perform procedures, including 
supplier arrangements, aspects of revenue recognition, the strategic review 
of the Financial Services division and the measurement of the provision for 
impairment of loans and advances to customers. The primary team 
interacted regularly with the component teams where appropriate during 
various stages of the audit, reviewed relevant working papers, retaining 
those that were considered key, and were responsible for the scope and 
direction of the audit process. This, together with the additional procedures 
performed at Group level, gave us appropriate evidence for our opinion on 
the Group financial statements.
Climate change 
Stakeholders are increasingly interested in how climate change will impact 
J Sainsbury plc. The Group has determined that the most significant future 
impacts from climate change on its operations will be from physical risks, 
such as extreme weather events including heat events, drought and 
flooding, together with transition risks including regulation and changes in 
consumer preferences. These are explained on pages 30 to 43 in the required 
Task Force On Climate Related Financial Disclosures and on pages 53 to 61 
in the principal risks and uncertainties. The Group has also explained their 
climate commitments as part of the Plan for Better strategy on pages 15 to 
17. All of these disclosures form part of the “Other information,” rather than 
the audited financial statements. Our procedures on these unaudited 
disclosures therefore consisted solely of considering whether they are 
materially inconsistent with the financial statements or our knowledge 
obtained in the course of the audit or otherwise appear to be materially 
misstated, in line with our responsibilities on “Other information”. 
In planning and performing our audit we assessed the potential impacts of 
climate change on the Group’s business and any consequential material 
impact on its financial statements. 
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126  J Sainsbury plc Annual Report and Financial Statements 2024
Independent Auditor’s Report  
to the Members of J Sainsbury plc continued
Climate change continued
As explained in Note 2 of the consolidated financial statements, the Group 
has considered the impact of physical and transitional climate change risks 
on estimates made in the financial statements. The Group has concluded 
that the impact is not material to the financial statement estimates. These 
disclosures also explain where policy, technology and market responses to 
climate change risks are still developing, and where the degree of certainty 
of these changes means that they cannot be taken into account when 
determining asset and liability valuations under the requirements of UK 
adopted International Accounting Standards. In Notes 3, 4, 17, 25 and 34 to 
the financial statements, narrative explanations of the impact of reasonably 
possible changes in key assumptions have been provided. 
Our audit effort in considering the impact of climate change on the financial 
statements was focused on evaluating management’s assessment of the 
impact of climate risk, physical and transitional, their climate commitments, 
the effects of material climate risks disclosed on pages 33 and 34 and 
whether these have been appropriately reflected in the valuation of assets 
and liabilities, the useful economic lives of property, plant and equipment 
and the cashflow forecasts used in the assessment of impairment of 
non-financial assets in accordance with UK adopted international 
accounting standards. As part of this evaluation, we performed our own 
risk assessment, supported by our climate change internal specialists, to 
determine the risks of material misstatement in the financial statements 
from climate change which needed to be considered in our audit. 
We also challenged the directors’ considerations of climate change risks in 
their assessment of going concern and viability and associated disclosures. 
Where considerations of climate change were relevant to our assessment of 
going concern, these are described above. 
Based on our work we have not identified the impact of climate change on the 
financial statements to be a key audit matter or to impact a key audit matter.
Key audit matters 
Key audit matters are those matters that, in our professional judgment, 
were of most significance in our audit of the financial statements of the 
current period and include the most significant assessed risks of material 
misstatement (whether or not due to fraud) that we identified. These 
matters included those which had the greatest effect on: the overall audit 
strategy, the allocation of resources in the audit; and directing the efforts of 
the engagement team. These matters were addressed in the context of our 
audit of the financial statements as a whole, and in our opinion thereon, and 
we do not provide a separate opinion on these matters.
Risk
Accounting and reporting for the Group’s phased withdrawal from 
the core banking business
Refer to the Audit Committee Report (page 92), Notes 4 (page 147), 5 (page 149), 
17 (page 160) and 28 (page 167) of the Consolidated Financial Statements
The Group announced the completion of a strategic review of the Bank, 
which will result in a phased withdrawal from the core banking business, 
with products that continue to be offered being provided by dedicated 
financial services providers through a distributed model. 
A significant change in strategy triggers a number of accounting risks which 
can involve complexity and significant management judgement. This gives 
rise to a number of accounting and reporting risks. 
We determined the risk to be most prevalent in financial statement line 
items and higher risk estimates which relied on prospective financial 
information or which contained direct financial impacts as a result of the 
change in strategy. These included:
(a)	
The appropriateness and completeness of £17 million provisions for 
onerous contracts;
(b)	
The appropriateness of the £212 million full impairment of fixed and 
intangible assets, including the goodwill previously recognised in 
the consolidated financial statements;
(c)	
The appropriateness of the £21 million reduction in interest income 
revenue recognised at the effective interest rate (EIR) where there is 
significant judgement involved in forecasting customer behaviour and 
estimating the future expected cash flows. EIR adjustments are 
sensitive to judgements about the expected behavioural lives and 
future yields of the product portfolios to which they relate; and
(d)	
Classification, measurement and disclosure considerations under 
IFRS 5, IFRS 7 and IFRS 9.
We consider there to be significant judgement required by management 
in making these accounting considerations.
Our response to the risk
•	 We assessed the design effectiveness of key controls across the processes 
relevant to the Group’s evaluation of accounting impacts from the change 
in strategy. 
•	 We evaluated the revised forecasts underpinning the Group’s change 
in strategy. This involved consideration of the significant impacts of 
either a sale of financial instrument portfolios or a managed wind-down 
of these portfolios. This involved an assessment of the Group’s use of 
specialists to forecast these scenarios, involvement of independent 
specialists and subject matter experts to challenge and validate the 
reasonableness of these scenarios, and an assessment of the accounting 
impact of these scenarios. 
•	 We challenged the appropriateness and completeness of provisions for 
onerous contracts and other related exposures by:
	
i	 Scrutinising the calculations, input data and assumptions used by 
management in computing the provisions;
	
ii	 Assessing the completeness of the provisions by examining significant 
contracts and a sample of lower value contracts and recalculated the 
expected onerous contract provision; and
	
iii	Reviewing internal papers presented to the Group and Bank Operating 
Boards and communications issued by the Bank to assess whether 
additional liabilities existed at the balance sheet date.
•	 We validated the impairment of fixed and intangible assets by:
	
i	 Inspecting the impairment tests performed by management and 
confirming that these indicated a full impairment was appropriate;
	
ii	 Inspecting management’s cashflow forecasts and validating the 
appropriateness of assumptions and calculations used to derive 
these forecasts;
	
iii	Considering the sensitivity of the impairment to reasonable 
movements in key assumptions; and 
	
iv	 Performing a stand-back analysis to identify whether the forecasts 
that supported a full impairment were consistent in all material 
respects with other areas of forecasting, including the going 
concern assessment. 
•	 We validated the adjustment recorded to EIR interest income (shown 
through the revenue line in the Consolidated Income Statement) by:
	
i	 Reviewing the methodology to assess whether all key variables were 
appropriately considered and were being accounted for in accordance 
with the applicable accounting standards;
	
ii	 Comparing judgements to: (a) observable recent customer behaviour, 
and (b) product pricing models;
	
iii	Evaluating the reasonableness of future cashflows as a result of the 
impact of the decision to undertake a phased withdrawal from the core 
banking business; and
	
iv	 Testing for indications of management bias through: (a) comparison of 
customer behaviour to observable market data; (b) review of judgements 
made by management for consistency with prior periods where 
appropriate; (c) performing sensitivity analysis over the impact of 
alternative behavioural lives and challenging the current behavioural 
lives used; and (d) challenging model alignment adjustments 
(“true-ups”) for appropriateness using our knowledge and experience 
across the industry, including assessing the appropriateness of the data, 
scenarios and calculations used in determining the true-up applied.
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J Sainsbury plc Annual Report and Financial Statements 2024  127
•	 We considered and evaluated the appropriate classification, 
measurement and disclosure of material items within the financial 
statements through:
	
i	 Reviewing papers prepared by management and expected timelines 
for key milestones of the strategic review as presented to the Board 
prior to the announcement to set an expectation for the status at the 
balance sheet date and the impact of financial statement reporting;
	
ii	 Enquiring of key management personnel at the Group and the Bank, 
to understand the specific circumstances and status relating to the 
strategic review as at the balance sheet date and obtaining supporting 
evidence to corroborate management’s conclusions; and
	
iii	Assessing the adequacy of the financial statement disclosures in 
respect of the above accounting impacts. This included disclosures 
which required additional judgement as a result of the change in 
strategy, including the assessment under IFRS 5 as to whether any 
assets and liabilities should be classified as ‘held for sale’ at the 
balance sheet date, the classification and measurement of financial 
instruments under IFRS 9 and the reporting of fair value disclosures.
Key observations communicated to the Audit Committee
We concluded that the accounting impacts for the Group’s phased 
withdrawal from the core banking business were appropriately reported in 
the consolidated financial statements and the disclosures in the financial 
statements are appropriate.
Risk
Supplier arrangements 
Refer to the accounting policy in Note 3.2 (page 140) and disclosure within 
Note 8 (page 152) of the Consolidated Financial Statements
The Group, through its Retail divisions, receives material discounts and 
incentives, fixed amounts (including promotions and utilisation of specific 
space), volume-based rebates and marketing and advertising income from 
suppliers, collectively referred to as supplier arrangements. The terms of 
agreements with suppliers can be complex and varied. In addition, there can 
be performance conditions or promotional periods that span the Group’s 
reporting date.
Amounts recognised as deductions to Cost of sales for the period ended 
2 March 2024 were £481 million (2022/2023: £383 million), with related 
balance sheet entries recognised in inventory, current trade receivables 
and current trade payables.
Accounting for rebate arrangements with suppliers requires judgement and 
estimation in determining the extent to which deal terms have been met, 
especially those spanning the Group’s reporting date, impacting cut-off. 
High deal volumes are recorded just prior to the Group’s reporting date 
which raises the risk that fixed amounts may be misstated. High levels of 
manual intervention within the marketing and advertising and discounts 
and incentives categories raise the risk of an error occurring in the 
calculation of income, either accidentally or purposefully through 
management override of controls. 
In the current year our risk has been focused on those arrangements which 
had not been settled at the year end and where there is judgement in 
determining whether the Group has met its performance conditions. 
Our response to the risk
We performed procedures over supplier arrangements at both the 
Sainsbury’s Supermarkets Limited and Argos Limited components.
•	 We walked through and assessed the design effectiveness of the key 
controls in place within the supplier arrangements process. 
•	 We selected a sample of suppliers across the categories of supplier 
arrangements, to whom we sent confirmations across certain ‘deal’ 
types to confirm key deal input terms. Where we did not receive a 
response from the supplier, we performed alternative procedures, 
including obtaining evidence of initiation (such as authorised deal forms) 
and if settled, settlement of the arrangement.
•	 We tested the existence and valuation of balance sheet amounts 
recognised in accounts receivable or as an offset to accounts payable by 
reviewing post-period end settlement. We also performed a ‘look-back’ 
analysis of prior period balance sheet amounts to check that these 
amounts were appropriately recovered. 
•	 We tested the settlement of a sample of supplier arrangements 
recognised in the income statement, which included settlement in cash 
or by offset to accounts payable. 
•	 Using data extracted from the accounting system, we analysed the 
correlation between the Income Statement and Balance Sheet accounts 
related to Supplier Arrangements. We also tested the appropriateness of 
journal entries and manual adjustments, meeting a pre-defined criteria, 
to corroborating evidence such as third party invoices. 
•	 We tested cut-off for deals recorded pre and post period end by obtaining 
the supplier agreement to validate that the deal was recorded in the 
correct period.
•	 We assessed the adequacy of the financial statements disclosures in 
respect of supplier arrangements and their compliance with accounting 
standards including the completeness and accuracy of amounts disclosed.
Key observations communicated to the Audit Committee
Supplier arrangement amounts are appropriately recognised in the income 
statement and balance sheet and the disclosures in the financial statements 
are appropriate.
Risk
Aspects of revenue recognition 
Refer to the accounting policy in Note 3.1 (page 139), disclosure within Note 4.2 
(page 148) and Note 6 (page 151) of the Consolidated Financial Statements
Revenue recognised, including the effects of manual adjustments, for the 
period ended 2 March 2024 totalled £32,700 million (2022/2023: £31,491 million).
There are a number of areas within revenue which require management to 
exercise accounting judgement in recording manual adjustments where the 
recognition of revenue does not directly correspond to cash receipts. Such 
adjustments primarily include commission-based arrangements, deferral of 
revenue relating to Nectar points and accounting for coupons and vouchers. 
There is a risk that these adjustments are not complete and accurate for the 
period ended 2 March 2024 and that accounting judgements taken are 
inappropriate, particularly in respect of deferral of revenue. The opportunity 
exists through management override of controls, such as the posting of 
manual journals, to misstate revenue in the period.
The risk has remained the same in the current year as there continues to be 
a focus on business performance.
Our response to the risk
We performed procedures over adjustments to revenue at the Sainsbury’s 
Supermarkets Ltd, Nectar 360 Ltd and Argos Ltd components.
•	 We gained an understanding of and documented the key processes used 
to record revenue transactions by performing walkthroughs and 
assessing the design effectiveness of key controls.
•	 We tested the appropriateness of the Group’s revenue recognition policy 
by comparing to the criteria set out in IFRS 15 Revenue from contracts 
with customers.
•	 We performed journal analysis to identify manual sales journals that did 
not result in cash receipts (including coupons and vouchers), obtaining 
supporting evidence of collection and settlement to verify revenue was 
recognised correctly. 
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128  J Sainsbury plc Annual Report and Financial Statements 2024
Independent Auditor’s Report  
to the Members of J Sainsbury plc continued
Our response to the risk continued
•	 In relation to the calculation of deferred revenue for Nectar points, we 
examined and critically assessed input data which included: 
	– Obtaining details of points balances earned and redeemed for the 
period ended 2 March 2024 and agreeing a sample of points in issue 
to Nectar partner confirmations;
	– Challenging and analysing management’s accounting judgements in 
respect of breakage (the proportion of points which are unlikely to ever 
be redeemed); and
	– Recalculating the fair value per point, applied to the number of points 
in circulation to determine the amount of deferred revenue at 
2 March 2024. 
•	 Using data extracted from the accounting system, we tested the 
appropriateness of manual journal entries, meeting pre-defined criteria 
and impacting revenue, as well as other adjustments (consolidation 
journals) made in the preparation of the financial statements. 
•	 We completed detailed analytical review procedures to understand if 
there had been significant or unusual activity in the period, including 
assessing changes in the number of and nature of manual adjustments 
to verify completeness.
Key observations communicated to the Audit Committee
Revenue has been correctly recognised in accordance with IFRS 15. We did 
not identify any exceptions in our testing of the manual entries.
Risk
Measurement of provision for impairment of loans and advances 
to financial services customers 
Refer to the Audit Committee Report (page 92); Accounting policy in Note 
3.8 (page 143); and Notes 4 (page 147), 21 (page 163) and 28 (page 167) of the 
Consolidated Financial Statements
Non-current loans and advances to customers (2023/2024: £1,525 million; 
2022/2023: £1,959 million)
Impairment of non-current loans and advances (2023/2024: £58 million 
2022/2023: £51 million)
Current loans and advances to customers (2023/2024: £3,227 million; 
2022/2023: £3,573 million)
Impairment of current loans and advances (2023/2024: £177 million; 
2022/2023: £189 million)
Customer receivables comprise unsecured personal loans, credit cards, 
mortgages (Sainsbury’s Bank) and store cards (Argos Financial Services). 
Credit provisions represent management’s best estimate of impairment and 
significant judgements and estimates are made in determining the timing 
and measurement of expected credit loss (“ECL”). The key judgements and 
estimates in respect of the timing and measurement of ECL include:
(a) The accounting interpretations and modelling assumptions used to build 
the models that calculate ECL; 
(b) Input and assumptions used to estimate the impact of the multiple 
economic scenarios (“MES”); 
(c) Allocation of assets to stage 1, 2 or 3 using criteria in accordance with 
IFRS 9 Financial instruments;
(d) Completeness and valuation of post model adjustments (“PMAs”); and
(e) Accuracy and adequacy of the financial statement disclosures. 
We consider the risk related to the ECL provisions continues to be 
heightened as a result of ongoing economic uncertainty. The accuracy of 
underlying data upon which the ECL is calculated is also a key factor in the 
overall estimate.
Our response to the risk
We performed procedures over ECL for Sainsbury’s Bank plc and Argos 
Financial Services entities. 
•	 We assessed the design effectiveness of key controls across the processes 
relevant to the impairment provision calculation, involving EY specialists 
to assist us in performing our procedures where appropriate. This 
included consideration of model governance, data accuracy and 
completeness, multiple economic scenarios, and the allocation of assets 
into stage 1, 2 and 3.
•	 We reviewed the minutes of the Model and Risk Committees where inputs, 
assumptions and adjustments to the ECL were discussed and approved.
•	 We tested the data used in the ECL calculation by independently 
reconciling a sample of data feeding the models to source systems and 
underlying documentation where applicable.
•	 We considered the assumptions, inputs and formulas used across the 
entire population of ECL models. This included assessing the appropriateness 
of model design and the formulae used, considering alternative 
modelling techniques and recalculating the Probability of Default, Loss 
Given Default and Exposure at Default for a sample of the models.
•	 With the support of our internal modelling specialists, we performed 
testing over models implemented during the year to validate that they 
were functioning as intended.
•	 We tested the assumptions and inputs used in the ECL models with the 
support of our internal modelling and economic specialists. In particular, 
we challenged the correlation and impact of the macroeconomic factors 
to the ECL and independently recalculated critical components of the ECL. 
In addition, we assessed the base and alternative economic scenarios, 
including challenging probability weights and comparing to other 
scenarios from a variety of external sources, as well as EY internally 
developed forecasts.
•	 We challenged the criteria used to allocate an asset to stage 1, 2 and 3 in 
accordance with IFRS 9 and substantively reperformed in full the staging 
calculation to ensure that assets in stages 1, 2, and 3 were allocated to the 
appropriate stage.
•	 We challenged PMAs for appropriateness and completeness using our 
knowledge and experience across the industry. We performed testing 
over material PMAs together with our internal modelling specialists. We 
undertook analysis and benchmarking to assess whether sufficient 
consideration was given to the uncertainty arising as a result of 
inflationary and interest rate pressures on borrowers, which may not be 
captured in modelled outputs given limitations over historic data.
•	 We performed stand-back analysis through industry benchmarking to 
peers and other available sources of information to help assess the 
appropriateness of the ECL provision overall.
•	 We assessed the adequacy and appropriateness of disclosures for 
compliance with the accounting standards.
Key observations communicated to the Audit Committee
We are satisfied that provisions for the impairment of loans and advances to 
customers were reasonable and recognised in accordance with the 
applicable reporting framework based on our procedures performed.
Risk 
Valuation of the defined benefit pension scheme assets
Refer to the Audit Committee Report (page 92); Accounting policy in Note 
3.19 (page 146); and Notes 4 (page 147) and 34 (page 183) of the Consolidated 
Financial Statements.
Retirement benefit surplus (2023/2024: £690 million; 2022/2023: £989 million)
Fair value of plan assets (2023/2024: £6,702 million; 2022/2023: £6,934 million)
Present value of funded and unfunded obligations (2023/2024:  £6,012 million; 
2022/2023: £5,945 million)
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J Sainsbury plc Annual Report and Financial Statements 2024  129
The valuation of the liabilities of the pension scheme is subject to the 
following significant assumptions which are determined by an external firm 
of pension actuaries:
a)	
Discount rate;
b) 	
Inflation;
c)	
Future pension increases; and
d)	
Mortality.
Given the quantum of the defined benefit pension obligation, a movement 
in the actuarial assumptions could result in a material difference in its value.
In addition, unquoted asset pools (2023/2024: £2,876 million; 2022/2023: 
£3,488 million) of the defined benefit pension scheme contain certain assets 
which are harder to value, increasing the risk of incorrect valuation.
The risks associated with the pension scheme remain elevated as a result of 
the economic environment, which has led to greater volatility in the liability 
assumptions and additional uncertainty over the valuation of pension 
assets, which drives the surplus calculation. This risk remains unchanged 
from the prior year. 
Our response to the risk
Our audit procedures covered the Sainsbury’s Pension Scheme which has 
two sections: the Sainsbury’s Section and the Argos Section.
•	 We gained an understanding of and documented the process used to 
record pension balances by performing a walkthrough and assessing the 
design effectiveness of key controls. 
•	 With the support of EY pension actuaries we considered the 
appropriateness of the key assumptions supporting the valuation of the 
scheme liabilities, being the discount rate, inflation, future pension 
increases and mortality. We developed an independent range of 
reasonable assumptions upon which to assess those used by the Group 
and its external actuarial experts.
•	 We assessed the impact on pension liabilities of changes in financial, 
demographic and mortality assumptions and whether these were in line 
with our expectations. We also tested the completeness and accuracy of 
member data on which these assumptions are based.
•	 With respect to certain unquoted pension assets we obtained independent 
confirmations from the respective fund managers for the assets held. In 
conjunction with EY valuation specialists we independently valued a 
sample of assets and compared these to management’s valuations, 
critically assessing management’s valuation methodology. 
•	 Where valuation adjustments had been made by management for changes 
in relevant market indices and to reflect cash received or paid between 
the dates of the fund managers’ net asset value statements and the end 
of the Group’s accounting period, we, in conjunction with EY valuation 
specialists, tested that the relevant assumptions used were appropriate. 
•	 We evaluated the competence, capabilities and objectivity of 
management’s external actuaries involved in the determination of the 
actuarial assumptions.
•	 We assessed the adequacy of the financial statements disclosures in 
respect of the defined benefit pension schemes and their compliance 
with accounting standards including the appropriateness of the key 
assumptions and sensitivities disclosed.
Key observations communicated to the Audit Committee
The assumptions used to value the defined benefit obligation are within an 
acceptable range. Our testing of the valuation of the pension assets, 
including certain harder to value assets, has not identified any misstatements.
Risk 
IT environment 
The IT systems across the Group are complex and there are varying levels of 
integration between them. The systems are vital to the ongoing operations 
of the business and to the integrity of the financial reporting process.
During the current year we continued to report deficiencies in certain IT 
controls. These deficiencies related to IT systems that are part of the Group’s 
control framework over financial reporting and required us to perform 
incremental procedures. 
This risk remains unchanged from the prior year. 
Our response to the risk
•	 Together with our IT specialists, we held discussions with management to 
understand the IT environment and walked through the key financial 
processes to understand where IT systems were integral to the Group’s 
controls over financial reporting. From this we identified which IT 
systems to include in scope for our detailed IT testing. 
•	 We assessed the IT general controls environment for the key systems 
impacting the accurate recording of transactions and the presentation of 
the financial statements. 
•	 We designed our IT audit procedures to assess the IT environment, 
including an assessment of controls over changes made to the systems 
and controls over appropriate access to the systems. 
•	 Where we found that adequate IT general controls were not in place, we 
performed incremental substantive audit procedures in response to the 
deficiencies identified for the systems within the scope of our audit. 
Key observations communicated to the Audit Committee
We completed additional substantive testing in order to mitigate the risk of 
material misstatement due to limitations in the IT general control 
environment and did not identify issues from this testing.
In the prior year, our auditor’s report included a key audit matter in relation 
to the Carrying value of non-current assets – store impairment. In the 
current year, this was not a key audit matter given the improvement in 
macroeconomic conditions impacting the performance of the retail store 
portfolio including the impact of interest rate and inflation rate forecasts 
on the Group’s discount rate.
Our application of materiality 
We apply the concept of materiality in planning and performing the audit, 
in evaluating the effect of identified misstatements on the audit and in 
forming our audit opinion. 
Materiality
The magnitude of an omission or misstatement that, individually or in 
the aggregate, could reasonably be expected to influence the economic 
decisions of the users of the financial statements. Materiality provides a 
basis for determining the nature and extent of our audit procedures. 
We determined materiality for the Group to be £35 million (2022/2023: 
£34 million), which is 5.0% (2022/2023: 4.8%) of Profit before tax, adjusted 
for non-recurring items. We believe that Profit before tax, adjusted for 
non-recurring items provides us with the most relevant performance 
measure as it adjusts for the effects of items which do not relate to the 
ongoing trading of the Group. 
We determined materiality for the Parent Company to be £136 million 
(2022/2023: £126 million), which is 2% (2022/2023: 2%) of net assets. For our 
testing of Parent Company balances that are consolidated into the Group 
financial statements, an allocation of Group performance materiality was used.
Starting basis
Adjustments
Materiality
•	 Profit before tax: £277 million
•	 Adjust for non-recurring items: 
£419 million
•	 These items are one-off in nature
•	 Total £696 million materiality basis
•	 Materiality of £35m (5.0% of 
materaility basis)
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130  J Sainsbury plc Annual Report and Financial Statements 2024
Independent Auditor’s Report  
to the Members of J Sainsbury plc continued
During the course of our audit, we reassessed initial materiality and no 
change to the planned materiality was needed from our original assessment 
at planning.
Performance materiality
The application of materiality at the individual account or balance level. 
It is set at an amount to reduce to an appropriately low level the 
probability that the aggregate of uncorrected and undetected misstatements 
exceeds materiality.
On the basis of our risk assessments, together with our assessment of the 
Group’s overall control environment, our judgement was that performance 
materiality was 50% (2022/2023: 50%) of our planning materiality, rounded 
to £17 million (2022/2023: £17 million). We have set performance materiality 
at this percentage to reduce to an appropriately low level the probability 
that the aggregate of uncorrected and undetected misstatements 
exceeds materiality.
Audit work at component locations for the purpose of obtaining audit 
coverage over significant financial statement accounts is undertaken based 
on a percentage of total performance materiality. The performance materiality 
set for each component is based on the relative scale and risk of the 
component to the Group as a whole and our assessment of the risk of 
misstatement at that component. In the current year, the range of performance 
materiality allocated to components was £3.4 million to £15.3 million 
(2022/2023: £3.4 million to £15.0 million).
Reporting threshold
An amount below which identified misstatements are considered as being 
clearly trivial.
We agreed with the Audit Committee that we would report to them all 
uncorrected audit differences in excess of £1.7 million (2022/2023: £1.7 million), 
which is set at 5% of planning materiality, as well as differences below that 
threshold that, in our view, warranted reporting on qualitative grounds. 
We evaluate any uncorrected misstatements against both the quantitative 
measures of materiality discussed above and in light of other relevant 
qualitative considerations in forming our opinion.
Other information 
The other information comprises the information included in the annual 
report set out on pages 1 to 121 and 199 to 205, other than the financial 
statements and our auditor’s report thereon. The directors are responsible 
for the other information contained within the annual report. 
Our opinion on the financial statements does not cover the other 
information and, except to the extent otherwise explicitly stated in this 
report, we do not express any form of assurance conclusion thereon. 
Our responsibility is to read the other information and, in doing so, consider 
whether the other information is materially inconsistent with the financial 
statements or our knowledge obtained in the course of the audit or 
otherwise appears to be materially misstated. If we identify such material 
inconsistencies or apparent material misstatements, we are required to 
determine whether this gives rise to a material misstatement in the 
financial statements themselves. If, based on the work we have performed, 
we conclude that there is a material misstatement of the other information, 
we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the 
Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited 
has been properly prepared in accordance with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
•	 the information given in the strategic report and the directors’ report for 
the financial year for which the financial statements are prepared is 
consistent with the financial statements; and 
•	 the strategic report and the directors’ report have been prepared in 
accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Group and the 
Parent Company and its environment obtained in the course of the audit, 
we have not identified material misstatements in the strategic report or the 
directors’ report.
We have nothing to report in respect of the following matters in relation to 
which the Companies Act 2006 requires us to report to you if, in our opinion:
•	 adequate accounting records have not been kept by the Parent Company, 
or returns adequate for our audit have not been received from branches 
not visited by us; or
•	 the Parent Company financial statements and the part of the Directors’ 
Remuneration Report to be audited are not in agreement with the 
accounting records and returns; or
•	 certain disclosures of directors’ remuneration specified by law are not 
made; or
•	 we have not received all the information and explanations we require for 
our audit.
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, 
longer-term viability and that part of the Corporate Governance Statement 
relating to the Group and Company’s compliance with the provisions of the 
UK Corporate Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that 
each of the following elements of the Corporate Governance Statement is 
materially consistent with the financial statements or our knowledge 
obtained during the audit:
•	 Directors’ statement with regards to the appropriateness of adopting the 
going concern basis of accounting and any material uncertainties 
identified set out on page 63;
•	 Directors’ explanation as to their assessment of the company’s prospects, 
the period this assessment covers and why the period is appropriate set 
out on page 62;
•	 Directors’ statement on whether they have a reasonable expectation that 
the Group will be able to continue in operation and meets its liabilities set 
out on page 63;
•	 Directors’ statement on fair, balanced and understandable set out on 
page 123;
•	 Board’s confirmation that it has carried out a robust assessment of the 
emerging and principal risks set out on page 53;
•	 The section of the annual report that describes the review of 
effectiveness of risk management and internal control systems set out on 
page 94; and;
•	 The section describing the work of the audit committee set out on page 93
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out 
on page 123, the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view, and 
for such internal control as the directors determine is necessary to enable 
the preparation of financial statements that are free from material 
misstatement, whether due to fraud or error. 
In preparing the financial statements, the directors are responsible for 
assessing the Group and Parent Company’s ability to continue as a going 
concern, disclosing, as applicable, matters related to going concern and 
using the going concern basis of accounting unless the directors either 
intend to liquidate the Group or the Parent Company or to cease operations, 
or have no realistic alternative but to do so.
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  131
Auditor’s responsibilities for the audit of the financial 
statements 
Our objectives are to obtain reasonable assurance about whether the 
financial statements as a whole are free from material misstatement, 
whether due to fraud or error, and to issue an auditor’s report that includes 
our opinion. Reasonable assurance is a high level of assurance, but is not a 
guarantee that an audit conducted in accordance with ISAs (UK) will always 
detect a material misstatement when it exists. Misstatements can arise 
from fraud or error and are considered material if, individually or in the 
aggregate, they could reasonably be expected to influence the economic 
decisions of users taken on the basis of these financial statements. 
Explanation as to what extent the audit was considered capable 
of detecting irregularities, including fraud 
Irregularities, including fraud, are instances of non-compliance with laws 
and regulations. We design procedures in line with our responsibilities, 
outlined above, to detect irregularities, including fraud. The risk of not 
detecting a material misstatement due to fraud is higher than the risk of not 
detecting one resulting from error, as fraud may involve deliberate 
concealment by, for example, forgery or intentional misrepresentations, 
or through collusion. The extent to which our procedures are capable of 
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of 
fraud rests with both those charged with governance of the Company 
and management. 
•	 We obtained an understanding of the legal and regulatory frameworks that 
are applicable to the Group and determined that the most significant are:
	– Those that relate to the form and content of the financial statements, 
such as UK adopted international accounting standards, the UK 
Companies Act 2006, the UK Corporate Governance Code;
	– Those that relate to the Bank, such as the regulations, license 
conditions and supervisory requirements of the Prudential Regulation 
Authority (“PRA”) and the Financial Conduct Authority (“FCA”); and
	– Industry-related such as compliance with the requirements of the 
Groceries Supply Code of Practice. 
•	 We understood how J Sainsbury plc is complying with those frameworks by 
making enquiries of management, Internal audit and those responsible for 
legal and compliance procedures. We corroborated our enquiries through 
our review of board minutes and papers provided to the Audit Committee 
and attendance at all meetings of the Audit Committee, as well as 
consideration of the results of our audit procedures across the Group. 
We assessed the susceptibility of the Group’s financial statements to 
material misstatement, including how fraud might occur by making an 
assessment of the key fraud risks to the Group and the manner in which 
such risks may manifest themselves in practice, based on our previous 
knowledge of the Group as well as an assessment of the current 
business environment.
•	 Based on this understanding we designed our audit procedures to 
identify non-compliance with such laws and regulations. Where the risk 
was considered to be higher, we performed audit procedures to address 
each identified risk of material misstatement. These procedures included 
those referred to in the “Accounting and reporting for the Group’s phased 
withdrawal from the core banking business”, “Supplier arrangements” 
and “Aspects of revenue recognition” key audit matters section above. 
These procedures included testing manual journals and were designed to 
provide reasonable assurance that the financial statements were free 
of material fraud or error. We evaluated the design and operational 
effectiveness of controls put in place to address the risks identified, 
or that otherwise prevent, deter and detect fraud. We also considered 
performance targets and their influence on efforts made by management 
to manage earnings.
•	 The Group has disclosed in Note 37 that employment tribunal claims have 
been received in respect of current and former Sainsbury’s store 
colleagues alleging their work is of equal value to that of colleagues 
working in Sainsbury’s distribution centre and differences in pay and 
other terms are not objectively justifiable. We inspected documentation 
prepared by management, the in-house legal counsel and management’s 
external legal advisors. We also discussed the nature of the claim and the 
basis for the disclosure presented in Note 37 with management, the 
external legal advisors and members of the Audit Committee.
A further description of our responsibilities for the audit of the financial 
statements is located on the Financial Reporting Council’s website 
at https://www.frc.org.uk/auditorsresponsibilities. This description forms 
part of our auditor’s report.
Other matters we are required to address
•	 Following the recommendation from the audit committee we were 
appointed by the Company on 8 July 2015 to audit the financial 
statements for the 52 weeks ended 12 March 2016 and subsequent 
financial periods. 
•	 The period of total uninterrupted engagement including previous 
renewals and reappointments is 9 years, covering the years ending 
12 March 2016 to 2 March 2024.
•	 The audit opinion is consistent with the additional report to the 
audit committee.
Use of our report
This report is made solely to the Company’s members, as a body, in 
accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit 
work has been undertaken so that we might state to the Company’s 
members those matters we are required to state to them in an auditor’s 
report and for no other purpose. To the fullest extent permitted by law, we 
do not accept or assume responsibility to anyone other than the Company 
and the Company’s members as a body, for our audit work, for this report, 
or for the opinions we have formed. 
Colin Brown
(Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
24 April 2024
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132  J Sainsbury plc Annual Report and Financial Statements 2024
Consolidated income statement
52 weeks to 2 March 2024 
52 weeks to 4 March 2023
Note
Underlying
£m
Non-
underlying
 items 
(Note 5)
£m
Total
£m
Underlying 
£m
Non-
underlying
 items 
(Note 5)
£m
Total
£m
Revenue
6
32,721
(21)
32,700
31,491
—
31,491
Cost of sales
 
(30,127)
(139)
(30,266)
(28,996)
(413)
(29,409)
Impairment loss on financial assets
 
(98)
—
(98)
(78)
—
(78)
Gross profit/(loss)
 
2,496
(160)
2,336
2,417
(413)
2,004
Administrative expenses
 
(1,553)
(309)
(1,862)
(1,480)
(35)
(1,515)
Other income
 
52
6
58
35
38
73
Operating profit/(loss)
 
995
(463)
532
972
(410)
562
Finance income
10
30
51
81
18
56
74
Finance costs
10
(324)
(12)
(336)
(300)
(9)
(309)
Profit/(loss) before tax
 
701
(424)
277
690
(363)
327
Income tax (expense)/credit
11
(185)
45
(140)
(157)
37
(120)
Profit/(loss) for the financial year
 
516
(379)
137
533
(326)
207
pence
 
pence
pence 
 
pence
Earnings per share
12
Basic earnings
 
22.1
 
5.9
23.0
 
9.0
Diluted earnings
 
21.6
 
5.7
22.7
 
8.8
The notes on pages 137 to 193 form an integral part of these financial statements. 
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J Sainsbury plc Annual Report and Financial Statements 2024  133
Consolidated statement of comprehensive income/(loss)
 
52 weeks to 
2 March 2024
52 weeks to 
4 March 2023
 
Note 
£m
£m
Profit for the financial year
 
137
207
Items that will not be subsequently reclassified to the income statement
 
 
Remeasurement on defined benefit pension schemes
34
(389)
(1,398)
Movements on financial assets at fair value through other comprehensive income
 
1
1
Cash flow hedges fair value movements – inventory hedges
30
(67)
123
Current tax relating to items not reclassified
 
10
25
Deferred tax relating to items not reclassified
11
177
322
 
 
(268)
(927)
Items that may be subsequently reclassified to the income statement
 
 
 
Currency translation differences
 
(3)
4
Movements on financial assets at fair value through other comprehensive income
 
—
1
Items reclassified from financial assets at fair value through other comprehensive income reserve
 
—
(1)
Cash flow hedges fair value movements – non-inventory hedges
30
(82)
(30)
Items reclassified from cash flow hedge reserve
30
4
(18)
Deferred tax on items that may be reclassified
11
17
14
 
 
(64)
(30)
Total other comprehensive loss for the year (net of tax)
 
(332)
(957)
Total comprehensive loss for the year
 
(195)
(750)
The notes on pages 137 to 193 form an integral part of these financial statements. 
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134  J Sainsbury plc Annual Report and Financial Statements 2024
Consolidated balance sheet
 
 
2 March 2024
4 March 2023
 
Note
£m
£m
Non-current assets
 
 
 
Property, plant and equipment
14
9,282
8,201
Right-of-use assets
15
4,296
5,345
Intangible assets
16
806
1,024
Investments in joint ventures and associates
 
2
2
Financial assets at fair value through other comprehensive income
18
761
515
Trade and other receivables
20
108
56
Amounts due from Financial Services customers and other banks
21
1,467
1,908
Derivative financial assets
30
68
217
Net retirement benefit surplus
34
690
989
 
 
17,480
18,257
Current assets
 
 
Inventories
19
1,927
1,899
Trade and other receivables
20
582
627
Amounts due from Financial Services customers and other banks
21
3,050
3,484
Financial assets at fair value through other comprehensive income
18
17
494
Derivative financial assets
30
8
70
Cash and cash equivalents
31
1,987
1,319
 
 
7,571
7,893
Assets held for sale
22
10
8
 
 
7,581
7,901
Total assets
 
25,061
26,158
Current liabilities
 
 
Trade and other payables
23
(5,091)
(4,837)
Amounts due to Financial Services customers and other deposits
24
(5,515)
(4,880)
Borrowings
33
(65)
(53)
Lease liabilities
15
(515)
(1,533)
Derivative financial liabilities
30
(28)
(16)
Taxes payable
 
(125)
(155)
Provisions
25
(113)
(140)
 
 
(11,452)
(11,614)
Net current liabilities
 
(3,871)
(3,713)
Non-current liabilities
 
 
Trade and other payables
23
(11)
—
Amounts due to Financial Services customers and other deposits
24
(206)
(1,066)
Borrowings
33
(1,130)
(603)
Lease liabilities
15
(4,839)
(4,956)
Derivative financial liabilities
30
(59)
(58)
Deferred income tax liability
11
(329)
(476)
Provisions
25
(167)
(132)
 
 
(6,741)
(7,291)
Total liabilities
 
(18,193)
(18,905)
Net assets
 
6,868
7,253
Equity
Called up share capital
26
678
672
Share premium
 
1,430
1,418
Merger reserve
 
568
568
Capital redemption and other reserves
27
955
954
Retained earnings
 
3,237
3,641
Total equity shareholders' funds
 
6,868
7,253
The notes on pages 137 to 193 form an integral part of these financial statements. 
Approved by the Board of Directors on 24 April 2024, and are signed on its behalf by:
Simon Roberts 	
	
	
	
	
	
Bláthnaid Bergin
Chief Executive	
	
	
	
	
	
Chief Financial Officer
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J Sainsbury plc Annual Report and Financial Statements 2024  135
Consolidated statement of changes in equity
 
Called up 
share capital
Share 
premium 
account
Merger 
reserve
Capital 
redemption
 and other 
reserves
Retained
 earnings
Total 
equity
 
Note
£m
£m
£m
£m
£m
£m
At 5 March 2023
 
672
1,418
568
954
3,641
7,253
Profit for the financial year
 
—
—
—
—
137
137
Other comprehensive loss
27
—
—
—
(147)
(389)
(536)
Tax relating to other comprehensive loss
 
—
—
—
99
105
204
Total comprehensive loss
 
—
—
—
(48)
(147)
(195)
Cash flow hedges losses transferred to inventory
27, 30
—
—
—
32
—
32
Transactions with owners:
Dividends
13
—
—
—
—
(306)
(306)
Share-based payment
35
—
—
—
—
87
87
Purchase of own shares
 27
—
—
—
(18)
—
(18)
Allotted in respect of share option schemes
26, 27
6
12
—
35
(38)
15
At 2 March 2024
 
678
1,430
568
955
3,237
6,868
 
 
Called up 
share capital
Share 
premium 
account
Merger 
reserve
Capital 
redemption 
and other
 reserves
Retained
 earnings
Total 
equity
 
Note
£m
£m
£m
£m
£m
£m
At 6 March 2022 
 
668
1,406
568
1,021
4,760
8,423
Profit for the financial year
 
—
—
—
—
207
207
Other comprehensive income/(loss)
27
—
—
—
80
(1,398)
(1,318)
Tax relating to other comprehensive income/(loss)
 
—
—
—
14
347
361
Total comprehensive income/(loss)
 
—
—
—
94
(844)
(750)
Cash flow hedges losses transferred to inventory
27, 30
—
—
—
(139)
—
(139)
Transactions with owners:
Dividends
13
—
—
—
—
(319)
(319)
Share-based payment
35
—
—
—
—
58
58
Purchase of own shares
 27
—
—
—
(45)
—
(45)
Allotted in respect of share option schemes
26, 27
4
12
—
23
(26)
13
Other adjustments
 
—
—
—
—
5
5
Tax on items charged to equity
 
—
—
—
—
7
7
At 4 March 2023
 
672
1,418
568
954
3,641
7,253
The notes on pages 137 to 193 form an integral part of these financial statements. 
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136  J Sainsbury plc Annual Report and Financial Statements 2024
Consolidated cash flow statement 
 
52 weeks to
2 March 2024
52 weeks to
4 March 2023
 
Note
£m
£m
Cash flows from operating activities
 
 
 
Profit before tax
277
327
Net finance costs
10
255
235
Operating profit
532
562
Depreciation
14,15
989
1,036
Amortisation
16
189
172
Net impairment loss on non-financial assets
14,15,16
235
315
Profit on sale of non-current assets and early termination of leases
(2)
(15)
Non-underlying fair value movements
5
46
29
Share-based payments expense
35
89
59
Defined benefit scheme expense/(income)
34
7
(2)
Cash contributions to defined benefit scheme
34
(44)
(44)
Operating cash flows before changes in working capital
2,041
2,112
Decrease/(increase) in inventories
5
(105)
Decrease in financial assets at fair value through other comprehensive income
(135)
(207)
(Increase)/decrease in trade and other receivables 
(5)
53
Decrease/(increase) in amounts due from Financial Services customers and other deposits
459
(231)
Increase in trade and other payables 
214
280
(Decrease)/increase in amounts due to Financial Services customers and other deposits
(225)
687
Increase in provisions
8
—
Cash generated from operations
2,362
2,589
Interest paid
(336)
(316)
Corporation tax paid
(61)
(103)
Net cash generated from operating activities
1,965
2,170
Cash flows from investing activities
 
 
Purchase of property, plant and equipment
(1,381)
(525)
Initial direct costs on new leases
(6)
(16)
Purchase of intangible assets
(178)
(213)
Proceeds from disposal of property, plant and equipment
77
29
Proceeds from disposal of amounts due from Financial Services customers
446
—
Interest received
27
15
Dividends and distributions received
—
1
Net cash used in investing activities
(1,015)
(709)
Cash flows from financing activities
 
 
Proceeds from issuance of ordinary shares
15
13
Proceeds from borrowings
33
575
—
Repayment of borrowings
(41)
(95)
Purchase of own shares
(18)
(45)
Capital repayment of lease obligations
(507)
(514)
Dividends paid on ordinary shares
13
(306)
(319)
Net cash used in financing activities
(282)
(960)
Net increase in cash and cash equivalents
 
668
501
Opening cash and cash equivalents
1,319
818
Closing cash and cash equivalents
31
1,987
1,319
The notes on pages 137 to 193 form an integral part of these financial statements. 
The Group now classifies interest received within cash flows from investing activities to provide greater clarity over the Group’s cash flows whereby such cash 
flows had previously been included within cash generated from operations. The 2023 amounts have therefore been re-presented whereby cash generated 
from operations and cash flows from investing activities were previously £2,604 million and £(724) million respectively.
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J Sainsbury plc Annual Report and Financial Statements 2024  137
Notes to the consolidated financial statements
1 General information
J Sainsbury plc is a public limited company (the Company) incorporated in the United Kingdom, whose shares are publicly traded on the London Stock 
Exchange. The Company is domiciled in the United Kingdom and its registered address is 33 Holborn, London EC1N 2HT, United Kingdom.
The consolidated financial statements for the 52 weeks to 2 March 2024 comprise the financial statements of the Company and its subsidiaries (the Group) 
and the Group’s share of the post-tax results of its joint ventures and associates. 
Within these consolidated financial statements, ‘2024’ refers to the 52 weeks to 2 March 2024, or as at 2 March 2024; and ‘2023’ refers to the 52 weeks to 
4 March 2023, or as at 4 March 2023.
The Group’s principal activities are Food, General Merchandise and Clothing retailing and Financial Services. 
2 Basis of preparation and consolidation
2.1 Basis of preparation
The Group’s financial statements have been prepared in accordance with UK-adopted international accounting standards.
They have been prepared under the historical cost convention, except for derivative financial instruments, defined benefit pension scheme assets and 
financial assets at fair value through other comprehensive income (FVOCI).
Sainsbury’s Bank plc and its subsidiaries have been consolidated for the 12 months to 29 February 2024 being the Bank’s year-end date (2023: 28 February 
2023). Adjustments have been made for the effects of significant transactions or events that occurred between this date and the Group’s balance sheet date.
Unless otherwise stated, material accounting policies have been applied consistently to all periods presented in the financial statements although certain 
presentational changes have been made with the objective of simplification and to assist in and aid the users’ understanding.
Climate change considerations
In preparing the Group’s financial statements, consideration has been given to the impact of both physical and transition climate change risks, as described 
within the Task Force on Climate-related Financial Disclosures section on page 30, and how these impact the financial statements. The Group has 
implemented processes to identify, assess and manage these risks, including scenario analysis and stress testing to understand the potential financial 
impact on the Group’s operations and assets. Consideration has also been given to the potential impact of policy, technology and market changes that are 
being developed in response to climate change, and their interdependence on each other. While it is not believed that these climate change risks have a 
material impact on the Group’s financial statements, it is recognised that the uncertainty and complexity of these issues may make it challenging to fully 
capture their potential impact. The ongoing assessment of these risks will be included in future financial statements as they become clearer, taking into 
account the requirements of UK-adopted international accounting standards. Monitoring and assessment of the regulatory environment and any new 
standards that may be developed in the future will continue. Further narrative disclosure has been provided in the following notes:
Note
– Going concern 
2.2
– Property, plant and equipment
3.5
– Significant judgements and estimates
4
– Impairment of non-financial assets
17.1
– Provisions
25.1
– Retirement benefit obligations
34.5
The policy, technology and market changes in response to climate change are still developing, and these are interdependent upon each other, and consequently 
the financial statements cannot capture all possible future outcomes as these are not yet known. The degree of certainty of these changes may also mean 
that they cannot be taken into account when determining asset and liability valuations and the timing of future cash flows under the requirements of UK 
adopted international accounting standards.
2.2 Going concern
The Directors are satisfied that the Group has sufficient resources to continue in operation for a period of at least 12 months from the date of approval. 
Accordingly, they continue to adopt the going concern basis in preparing the financial statements. The assessment period for the purposes of considering 
going concern is the 12 months to 24 April 2025.
In assessing the Group’s ability to continue as a going concern, the Directors have considered the Group’s most recent corporate planning and budgeting 
processes. This includes an annual review which considers profitability, the Group’s cash flows, committed funding and liquidity positions and forecasted 
future funding requirements over three years, with a further year of indicative movements. 
The Group manages its financing by diversifying funding sources, structuring core borrowings with phased maturities to manage refinancing risk and 
maintaining sufficient levels of standby liquidity via the Revolving Credit Facility. This seeks to minimise liquidity risk by maintaining a suitable level of 
undrawn additional funding capacity.
The Revolving Credit Facility of £1,000 million comprises two £500 million facilities which were both extended by a further 12 months during the year. Facility 
A has a final maturity of December 2028 and Facility B has a final maturity of December 2027. As at 2 March 2024, the Revolving Credit Facility was undrawn. 
In assessing going concern, scenarios in relation to the Group’s principal risks have been considered in line with those disclosed in the viability statement on 
page 63 by overlaying them into the corporate plan and assessing the impact on cash flows, net debt and funding headroom. These severe but plausible 
scenarios included modelling inflationary pressures on both food margins and general recession-related risks, the impact of any regulatory fines, and the 
failure to deliver planned cost savings.
In performing the above analysis, the Directors have made certain assumptions around the availability and effectiveness of the mitigating actions 
available to the Group. These include reducing any non-essential capital expenditure and operating expenditure on projects, bonus and pay awards, 
and dividend payments.
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138  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
2 Basis of preparation and consolidation continued
2.2 Going concern continued
The Group’s most recent corporate planning and budgeting processes includes assumed cashflows to address climate change risks, including costs 
associated with initiatives in place as part of the Plan for Better commitment which include reducing environmental impacts and meeting customer 
expectations in this area, notably through reducing packaging and reducing energy usage across the estate. Climate-related risks do not result in any 
material uncertainties affecting the Group’s ability to continue as a going concern.
Specific additional consideration has been given to the impacts of the strategic review of the Financial Services division as described in the Strategic Report 
on page 63. The strategy change introduces new or amended risks in respect of liquidity and capital adequacy which arise from the move to offer financial 
services products by dedicated financial services providers and the phased withdrawal from the core banking business. Taking into account the current and 
forecast levels of liquidity and capital together with the related headroom, the Directors have considered and assessed the potential impact of the strategic 
change and the risks arising thereon. The evaluation has included the quantification of any potentially adverse impacts of customer behaviour as well as the 
timing of repayment of external funding. Having undertaken this assessment, the Directors are satisfied that the Bank has sufficient liquidity and capital 
resources to withstand severe but plausible adverse scenarios stemming from the risks of the strategic change, prior to any additional mitigating actions 
being taken. In the event of any mitigations being required, the Directors are confident that additional liquidity could be raised through future asset 
securitisations or other sources of funding. Accordingly, it has been concluded that this does not result in any material uncertainties affecting the Group’s 
ability to continue as a going concern.
As a consequence of the work performed, the Directors considered it appropriate to adopt the going concern basis in preparing the Financial Statements with 
no material uncertainties to disclose.
2.3 Basis of consolidation
a)	Subsidiaries
Subsidiaries are all entities, including structured entities (see below) over which the Group has control. This is when the Group is exposed to, or has rights to, 
variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The results of subsidiaries 
are included in the income statement from the date of acquisition or, in the case of disposals, up to the effective date of disposal. Intercompany transactions 
and balances between Group companies are eliminated upon consolidation.
Sainsbury’s Thistle Scottish Limited Partnership and Nectar 360 Services LLP are partnerships which are fully consolidated into these Group financial 
statements. The Group has taken advantage of the exemption conferred by Regulation 7 of the Partnerships (Accounts) Regulations 2008 and has therefore 
not appended the accounts of these qualifying partnerships to these financial statements.
b)	Joint ventures and associates
Investments in joint arrangements are classified as joint ventures whereby the joint controlling parties have rights to the net assets of the arrangement. 
Associates are entities over which the Group has significant influence but not control.
Investments in joint ventures and associates are carried in the Group balance sheet at historical cost plus post-acquisition changes in the Group’s share of net 
assets of the entity, less any provision for impairment. Where the Group transacts with a joint venture or associate, profits and losses are eliminated to the 
extent of the Group’s interest in the joint venture or associate. 
Joint ventures with a different year-end date to the Group are reported to include the results up to 29 February, the nearest month-end to the Group’s 
year-end. Adjustments are made for the effects of significant transactions or events that occurred between 29 February and the Group’s balance sheet date. 
c)	 Business combinations
Business combinations are accounted for using the acquisition method where any excess of the purchase consideration over the fair value of the assets, 
liabilities and contingent liabilities acquired and the resulting deferred tax thereon is recognised as goodwill which is then reviewed annually for impairment. 
Acquisition related costs are expensed.
Where relevant and in particular in property related acquisitions, the optional ‘concentration test’ and ‘substantive process test’ set out within IFRS 3 Business 
Combinations are considered to assess whether assets and liabilities acquired in a transaction constitute a business as opposed to an asset acquisition.
d)	Asset acquisitions
Where the value of assets in a target, such as investment property, represents substantially all of the fair value of the gross assets acquired, the transaction 
is accounted for as an asset acquisition.
e)	 Foreign currencies
Foreign operations
The Group has operations in Asia that source and purchase certain general merchandise and clothing inventory. In addition, the Group had a trading entity in 
Ireland during the financial year. On consolidation, assets and liabilities of foreign operations are translated into pound sterling at year-end exchange rates. 
The results of foreign operations are translated into pound sterling at average rates of exchange for the year. Exchange differences arising are recognised in 
the Group statement of comprehensive income/(loss) and are included in the Group’s translation reserve.
Foreign currency transactions
Transactions denominated in foreign currencies are translated at the exchange rate at the date of the transaction. Monetary assets and liabilities 
denominated in foreign currencies at the balance sheet date are translated at the exchange rate ruling at that date. Foreign exchange differences 
arising on translation are recognised in the income statement.
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J Sainsbury plc Annual Report and Financial Statements 2024  139
2 Basis of preparation and consolidation continued
2.4 New accounting pronouncements 
New accounting standards, amendments to standards and IFRIC interpretations which became applicable during the year or have been published but are not 
yet effective, were either not relevant or had no impact, or no material impact, on the Group’s results or net assets.
In respect of IFRS 17 Insurance Contracts, which became effective for the current financial year, an assessment was made as to whether any of the Group’s 
arrangements met the definition of an insurance contract. While some contracts may transfer an element of insurance risk, they relate to warranty 
agreements and therefore will continue to be accounted for under the existing revenue and provisions standards. The Group has identified that IFRS 17 will 
impact the results of its captive insurance company as it issues insurance contracts, however the impact on the income statement and balance sheet is 
immaterial. The Group has also assessed its parent company guarantee arrangements but concluded that the adoption of IFRS 17 has no impact on these.
The accounting policies have remained unchanged from those disclosed in the Annual Report for the financial year ended 4 March 2023.
2.5 Alternative Performance Measures (APMs)
In the reporting of financial information, the Directors use various APMs. These APMs should be considered in addition to, and are not intended to be a 
substitute for, IFRS measurements. As they are not defined by International Financial Reporting Standards, they may not be directly comparable with 
other companies’ APMs. 
The Directors believe that these APMs provide additional useful information for understanding the financial performance and health of the Group. They are 
also used to enhance the comparability of information between reporting periods (such as like-for-like sales and underlying performance measures) by 
adjusting for non-recurring factors which affect IFRS measures, and to aid users in understanding the Group’s performance. Consequently, APMs are used 
by the Directors and management for performance analysis, planning, reporting and incentive setting purposes.
The income statement shows the non-underlying items excluded from reported results to determine underlying results with a more detailed analysis of the 
non-underlying items set out in note 5. Other APMs are detailed in notes A1, A2, A3 and A4 of this report, which include further information on the definition, 
purpose and reconciliation to the closest IFRS measure. APMs used by the Group are consistent with those used in the prior financial year. 
2.6 Asset acquisition
During the financial year the Group purchased Supermarket Income REIT’s beneficial interest in a commercial property investment pool, in which the Group 
already held a beneficial interest, through the acquisition of Hobart Property plc, Avenell Property plc, Horndrift Limited and Cornerford Limited. The Group 
signed a Master Framework Agreement on 13 March 2023 subject to certain conditions being met including providing sufficient up-front funding to the 
Security Trustee for them to redeem each of the bond liabilities attached to the property pools. These investment pools consisted of 26 supermarket stores, 
all of which were formerly leased to Sainsbury’s. Of the 26 stores acquired, 21 stores have been retained and one store has been vacated and recognised within 
assets held for sale. The remaining four stores have been sold and leased back to the Group.
The Group considered both the optional ‘concentration test’ and the ‘substantive process test’ set out within IFRS 3 Business Combinations to assess whether 
the assets and liabilities acquired in the transaction constituted a business. The value of investment properties represented substantially all of the fair value 
of the gross assets acquired and as such the transaction has been accounted for as an asset acquisition, with a corresponding derecognition of lease liabilities 
and right of use assets whereby the Group already had a beneficial interest in these assets.
The impact of this transaction on the Group’s accounts is set out in notes to the financial statements and is summarised as follows. 
The Group recognised £1,021 million of property, plant and equipment for the stores acquired and derecognised £1,042 million in lease liabilities and £1,031 
million in right-of-use assets respectively as a result of the transaction. The net difference in the lease liabilities and right-of-use assets derecognised is 
included within the recognition of the property, plant and equipment. The lease balances had included the payment of purchase options at the end of the 
lease terms, which were rescinded as part of the transaction.
The total consideration paid for the asset acquisition was £731 million. As part of the purchase agreement, the Group pre-funded £170 million of consideration 
in escrow for the benefit of the Security Trustee on 14 March 2023, to enable them to redeem the Avenell Bond on 20 March 2023. Similarly, the Group pre-funded 
£130 million of consideration in escrow for the benefit of the Security Trustee on 5 July 2023, to enable them to redeem the Hobart Bond on 13 July 2023.
The total consideration paid of £731 million, including the pre-funded £300 million noted above, is all presented within the Group cashflow statement 
as investing activities within purchases of property, plant and equipment.
Proceeds of £61 million were received for the four stores sold and leased back. As the proceeds in the sale and leaseback were equal to the fair value of the 
assets sold, these cashflows have been presented within investing cashflows.
Previously the Group had held a portion of the beneficial interest in this commercial property investment pool, recognised within financial assets at FVOCI. 
This balance of £366 million was fully derecognised as part of the acquisition.
The asset acquisition is referred to as the Highbury & Dragon property transaction within the Annual Report.
3 Material accounting policies
3.1 Revenue
Revenue arises from the sale of goods and services in the course of the Group’s ordinary activities, net of returns, related discounts and excluding Value 
Added Tax (VAT) and, in the case of Financial Services, interest receivable, fees and commissions. Revenue is recognised when the Group has a contract 
with a customer and a performance obligation has been satisfied, at the transaction price allocated to that performance obligation.
a)	Retail sales
Sale of goods
Revenue from the sale of goods is recognised at point of sale or, where later, upon collection by, or delivery to, the customer as this is the point in which 
control has passed. Where consideration has been received in advance of the performance obligation being satisfied, a contract liability is recognised. 
Other revenue items
Other revenue items comprise income from commissions and wholesale revenue made directly to third-party customers. 
Commission revenue relates to the sale of third-party products where it has been determined that the Group is acting as an agent. Sales commission from 
third parties is recognised when the related goods or services are sold. 
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140  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
3 Material accounting policies continued
3 Revenue continued
b)	Nectar points
The issuance of Nectar points creates a separate performance obligation and therefore a portion of the transaction price is allocated to the loyalty 
programme using the relative standalone selling price of points issued, and the corresponding revenue deferred. The fair value of the points awarded is 
determined with reference to the value per point to a customer and considers expected redemption rates (breakage) and the money off that each point 
entitles a customer to. The deferral is treated as a deduction from revenue and recognised as a contract liability within deferred income. The revenue 
deferred is subsequently recognised when the Nectar points are redeemed by the customer.
c)	 Financial Services
Financial Services revenue consists of interest, fees and commission income from the provision of retail banking and insurance-related activities.
Interest income
Interest income is recognised in the income statement for all instruments measured at amortised cost using the effective interest method. 
The effective interest rate of a financial asset is calculated on initial recognition and is applied to the gross carrying amount of the asset. For financial 
assets that have become credit-impaired subsequent to initial recognition, interest income is calculated by applying the effective interest rate to the 
amortised cost of the financial asset net of impairment. If the asset is no longer credit impaired, then the calculation of interest income reverts to the 
gross basis. In calculating the effective interest rate of a financial instrument the Group takes into account all amounts that are integral to the yield 
of a financial instrument as well as incremental transaction costs. 
Fees and commission income
Fees and commissions that are not integral to the effective interest rate calculation relate primarily to certain credit card and storecard fees, ATM interchange 
fees, insurance introduction commission and warranty commission receivable. These are recognised in the income statement on an accruals basis as 
performance obligations are satisfied. Where in the case of insurance commissions the income comprises an initial commission and profit share, both 
are recognised on completion of the service to the extent reliably measurable. Where there is a risk of potential claw back, an appropriate element of the 
commission receivable is deferred and amortised over the clawback period.
Income from the sale of travel money, representing the difference between the cost price and the selling price, is recognised when the sale to the customer 
takes place. 
3.2 Cost of sales
Cost of sales consists of all costs that are directly attributable to the point of sale including warehouse, transportation costs and all the costs of operating 
retail outlets. In the case of Financial Services, cost of sales includes interest expense on operating activities, calculated using the effective interest method. 
Supplier incentives, rebates and discounts, collectively known as ‘supplier arrangements’, represent a material deduction to cost of sales and directly affect 
the Group’s reported margin. 
Income from supplier arrangements is recognised when earned by the Group when all obligations per the terms of the contract have been satisfied. Any 
supplier arrangements which are linked to inventory purchases are included within the cost of the related inventory, and therefore recognised within cost of 
sales once the inventory is sold. Unpaid amounts relating to supplier arrangements are recognised within trade and other receivables, unless there is a legal 
right of offset, in which case it is recognised within trade and other payables. Amounts which have been invoiced at the balance sheet date are categorised as 
supplier arrangements due and those not yet invoiced are categorised as accrued supplier arrangements. 
3.3 Finance income and costs
Finance income and costs, excluding those arising from Financial Services, are recognised in the income statement for financial assets and liabilities 
measured at amortised cost using the effective interest method. 
For Financial Services, finance income and finance costs are recognised in revenue and cost of sales.
Fair value remeasurements relate to net fair value movements on derivative financial instruments not designated in a hedging relationship. 
3.4 Taxation
a) Current tax
Current tax is accounted for on the basis of tax laws enacted or substantively enacted at the balance sheet date. Current tax is charged or credited to the 
income statement, except when it relates to items charged to equity or other comprehensive income. 
b) 	Deferred tax
Deferred tax is accounted for on the basis of temporary differences arising from differences between the tax base and accounting base of assets 
and liabilities.
Deferred tax is recognised for all temporary differences, except to the extent where it arises from the initial recognition of an asset or a liability in a 
transaction that is not a business combination and, at the time of transaction, affects neither accounting profit nor taxable profit. It is determined using tax 
rates (and laws) that have been enacted or substantively enacted at the balance sheet date and are expected to apply when the related deferred income tax 
asset is realised or the deferred income tax liability is settled.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised.
Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity or other comprehensive income.
Deferred tax is provided on temporary differences associated with investments in subsidiaries, branches, and joint ventures except where the Group is able 
to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.
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3 Material accounting policies continued
3.5 Property, plant and equipment
a)	Land and buildings
Land and buildings are held at historical cost less accumulated depreciation and, where appropriate, any provision for impairment as determined in 
accordance with note 3.8. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for 
intended use, including any directly attributable internal payroll-related costs for employees who are associated with projects in order to bring the assets 
into use.
b)	Fixtures and equipment
Fixtures, equipment and vehicles are held at cost less accumulated depreciation and, where appropriate, any provision for impairment as determined in accordance 
with note 3.8. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition and its intended use, 
including any directly attributable internal payroll-related costs for employees who are associated with projects in order to bring the assets into use. 
c)	 Work in progress
Capital work in progress is held at cost less any provision for impairment.
d)	Depreciation
Depreciation is calculated to write down the cost of the assets to their residual values, on a straight-line basis over their useful economic life, using the 
following rates:
•	 Freehold buildings and leasehold improvements	
50 years, or the lease term if shorter
•	 Fixtures, equipment and vehicles	
	
three to 15 years 
•	 Freehold land	
	
	
	
not depreciated
Capital work in progress (which excludes land) is not depreciated prior to being available for its intended commercial use.
e)	 Disposals and retirement
The gain or loss on disposal or retirement of an asset is determined by comparing proceeds less any associated costs of disposal with the asset’s carrying 
amount and is recognised within operating profit. 
f)	 Climate change impacts
Residual values and useful lives of assets are reviewed, and adjusted if appropriate, at the end of each reporting period. This includes consideration over 
climate change-related risks which may impact the useful lives or residual values of the Group’s assets, such as the impact of flood risks on store and 
non-store assets, changes in regulations related to carbon emissions and any anticipated replacement of existing assets with new technologies. 
g)	Capitalisation of interest
Borrowing costs that are directly attributable to the acquisition or construction of qualifying assets are capitalised to the cost of the asset, gross of tax relief. 
3.6 Leases
a)	Group as lessee
The Group’s lease portfolio is principally comprised of property leases of land and buildings in relation to stores, distribution centres and support offices, 
but also includes other assets such as motor vehicles. The leases have varying terms and often include break clauses or options to renew beyond the 
non-cancellable periods.
The Group presents additions to lease liabilities and right-of-use assets in line with the disclosure requirements of IFRS 16 Leases. In doing so, additions to 
right-of-use assets and lease liabilities in note 15 include the net impact of new leases, terminations, modifications, and reassessments.
Right-of-use assets
Right-of-use assets are recognised at the commencement date of the lease, when the underlying asset is available for use. The cost of right-of-use assets 
comprises the amount of lease liabilities recognised, any initial direct costs incurred, lease payments made at or before the commencement date and less 
any lease incentives received. Right-of-use assets are subsequently measured at cost, less any accumulated depreciation and impairment losses, and 
adjusted for any subsequent modifications which include terminations and reassessments which all represent a remeasurement of lease liabilities. 
The recognised right-of-use assets are depreciated on a straight-line basis over the shorter of the estimated useful life and the lease term. 
Lease liabilities
Lease liabilities are recognised at the commencement date of the lease and are measured at the present value of lease payments to be made over the lease 
term, discounted using the incremental borrowing rate (IBR) at the lease commencement date if the interest rate implicit in the lease is not readily determinable. 
The lease payments include fixed payments and variable lease payments that depend on an index or a rate (using the relevant rate at the commencement 
date of the lease), less any lease incentives receivable. The variable lease payments that do not depend on an index or a rate are recognised as an expense in 
the period in which the event or condition that triggers the payment occurs. For agreements which contain both lease and non-lease components, such as 
cleaning and maintenance services, the non-lease component is excluded from the lease payments used to measure the lease liabilities.
The IBRs depend on the start date and term of the lease, and are determined based on a reference (risk free) rate and adjustments to reflect the Group’s 
credit risk. 
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is 
reasonably certain to be exercised, or any periods covered by an option to terminate the lease (a break clause), if it is reasonably certain not to be exercised.
After the commencement date of the lease, the lease liability is subsequently measured at amortised cost using the effective interest rate method. The 
carrying amount of lease liabilities is remeasured when there is a change in the future lease payments due to a change in the lease term such as a 
recognition of an extension or break option, a change in the fixed lease payments or a change in the assessment to purchase the underlying asset.
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Notes to the consolidated financial statements continued
3 Material accounting policies continued
3.6 Leases continued
Short-term leases and leases of low-value assets
The Group applies the short-term lease recognition exemption to those leases that have a lease term of 12 months or less from the commencement date and 
do not contain a purchase option. It also applies the low-value asset recognition exemption to groups of underlying leases where the underlying assets leased 
are considered uniformly low value. Lease payments on short-term leases and leases of low-value assets are expensed to the income statement.
b) Group as a lessor
The Group leases out owned properties and sublets leased properties under operating and finance leases. Such properties include mall units, stores and units 
within stores. 
Subleases
Classification is assessed with reference to the head lease right-of-use asset. This assessment considers, among other factors, whether the sublease 
represents the majority of the remaining life of the head lease. The ratio of rental income to head lease rental payments is used to determine how much of 
the right-of-use asset should be derecognised, or analysis of square foot leased in the headlease and sublease where appropriate. This assessment takes into 
consideration whether the sublease/headlease are above or below market rate. 
Finance leases
Amounts due under finance leases are recorded as a receivable at an amount equal to the net investment in the lease. This is initially calculated and 
recognised using the IBR prevalent in the underlying headlease at the recognition date. Any difference between the derecognised right-of-use asset 
and the newly recognised amounts due for leases under finance leases is immediately recognised in the income statement. The Group recognises 
finance income over the lease term, reflecting a constant periodic rate of return on the Group’s net investment in the lease. 
Operating leases
Operating lease income is recognised as earned on a straight-line basis over the lease term. 
3.7 Intangible assets
a)	Goodwill
Goodwill represents the excess of the fair value of the consideration of an acquisition over the fair value of the Group’s share of the net identifiable assets of 
the acquired subsidiary at the date of acquisition. At the acquisition date goodwill is allocated to the cash-generating unit (CGU) or group of CGUs within the 
Retail or Financial Services segments that are expected to benefit from the combination. Goodwill is not amortised, but is tested at least annually for 
impairment as set out in note 3.8.
b)	Computer software 
Software and licences which are capitalised include costs incurred to acquire the assets as well as any external and internal costs incurred in the 
development of software. External and internal costs are external direct costs, as well as directly attributable internal payroll-related costs for employees 
who are associated with projects in order to bring the assets into use. Costs associated with internally generated software are recognised as an intangible 
asset only if they can be separately identified, it is probable that the asset will generate future economic benefits which exceed one year, and the cost can 
be measured reliably. Software under development is not amortised, but held at cost less any impairment loss.
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which it relates. Costs associated 
with maintaining computer software are recognised as an expense as incurred.
c)	 Cloud computing arrangements 
Software as a Service (SaaS) arrangements are service contracts providing the Group with the right to access a cloud provider’s application software over the 
contract period. Typically, such arrangements involve ongoing licence fees to obtain access to the cloud provider’s application software, as well as upfront 
costs incurred to configure or customise the SaaS solution.
Configuration and customisation costs are capitalised in the following instances as intangible assets:
•	 The Group has both a contractual right to take possession of the software at any time without significant penalty, and the ability to run the software 
independently of the host vendor
•	 The costs incurred meet the definition of and recognition criteria for an intangible asset. This includes for example the development of software code that 
enhances or modifies, or creates additional capability to, existing systems controlled by Sainsbury’s
Where these conditions are not met, costs incurred to configure or customise, and the ongoing fees to obtain access to the cloud provider’s application 
software, are recognised as operating expenses when the services are received.
Where the configuration or customisation of a SaaS solution is performed by the SaaS vendor, consideration is given to whether this activity is distinct from 
the provision of the solution itself. This assessment considers the nature of the activities, and whether benefit can be obtained from any of the services in 
isolation. Where the activity is not considered distinct, the costs are capitalised as a prepayment and amortised over the expected useful life of the solution.
d)	Acquired intangible assets
Intangible assets acquired in a business combination are recognised at fair value at the acquisition date. Intangible assets with finite useful economic lives 
are carried at cost less accumulated amortisation and any provision for impairment. Amortisation of acquired intangible assets is recorded within 
administrative expenses.
e)	 Amortisation
Amortisation is calculated to write down the cost of the assets to their residual values, on a straight-line basis over their useful economic life, using the 
following rates:
•	 Computer software		
	
	
	
	
	
five to 15 years
•	 Configuration and customisation costs capitalised as part of SaaS arrangements	
life of the SaaS arrangement
•	 Acquired intangible assets	
	
	
	
	
	
five to ten years
•	 Goodwill	
	
	
	
	
	
	
not amortised
Capital work in progress is not amortised prior to being available for its intended commercial use.
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3 Material accounting policies continued
3.8 Impairment 
a)	Non-financial assets
Property, plant and equipment (PPE), right-of-use assets, and intangible assets are assessed on an ongoing basis to determine whether there is an indication 
that the net book value is no longer supportable. If any such indication exists, the recoverable amount of the asset, being the higher of its fair value less costs 
to dispose and its value-in-use (VIU), is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable 
amount of an individual asset, the Group estimates the recoverable amount of the CGU to which the asset belongs.
If the recoverable amount of an asset or CGU is estimated to be less than its carrying amount, the carrying amount of the asset or CGU is impaired to its 
recoverable amount.
Where there has been a change in the estimates used to determine the recoverable amount and an impairment loss subsequently reverses, the carrying 
amount of the asset or CGU is increased to the revised estimate of its recoverable amount, although not to exceed the carrying amount that would have been 
determined had no impairment loss been recognised. Any impairment loss or reversal of impairment is recognised in the income statement.
Goodwill is assessed annually by measuring the recoverable amount of the CGU, calculated as the higher of fair value less cost to dispose and VIU. Where the 
carrying value of the CGU exceeds the recoverable amount, an impairment loss is recognised in the income statement. The impairment charge is allocated 
first against goodwill and then pro rata against other assets within the CGU by reference to the carrying amount of each remaining asset in the CGU. 
Impairment losses recognised for goodwill are not subsequently reversed.
Identification of a cash-generating unit
CGUs are deemed the smallest group of assets that independently generate cash inflows and are independent of the cash flows generated by other assets 
and are identified within the respective reportable operating segments.
Retail
CGUs are deemed to be corporate level business units, trading stores, store pipeline development sites or in certain cases for Argos, a cluster of stores.
PPE, intangible assets and right-of-use assets are allocated to the store CGU they are associated with. For non-store assets, including depots and IT assets, 
these are allocated to store CGUs where it can be done on a reasonable and consistent basis, otherwise these are allocated to the CGU corporate level to which 
they relate. 
Goodwill recognised on acquisition of retail chains of stores is allocated, where possible, to respective store CGUs, otherwise it is attributed to the acquired 
business as a whole.
Financial Services
Cash generating units are deemed to be each respective product or product group that is capable of generating cash flows independent of other products. 
Non-product assets are reviewed separately as collective CGUs with the products that they support.
b) Financial assets
Impairments on financial assets are accounted for using a three-stage forward-looking expected credit loss (ECL) approach. The Group is required to record 
an allowance for ECL for all loans and other debt financial assets not held at fair value through profit or loss (FVTPL), together with loan commitments and 
financial guarantee contracts.
ECLs are based on the difference between the cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, 
discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other 
credit enhancements that are integral to the contractual terms.
For Financial Services portfolios of loans, such as credit card lending, storecard lending and personal loans, impairment provisions are calculated for groups 
of assets, otherwise impairment is identified at a counterparty-specific level. The allowance is calculated by reference to the estimated probability of default 
(PD), exposure at default (EAD) and loss given default (LGD).
•	 The probability of default represents the likelihood of a borrower defaulting within 12 months from the balance sheet date or within the expected lifetime 
of the borrower
•	 Exposure at default represents the expected amount due from the borrower at the point of default by reference to exposure at the balance sheet date 
adjusted for expected future changes including repayments and utilisation of undrawn facilities
•	 Loss given default represents the expected percentage loss at the point of default relative to the EAD. The estimate takes into account utilisation of any 
expected collections and recoveries strategies, debt sale arrangements and collateral
3.9 Inventories
Inventories comprise goods held for resale and are valued on a standard cost or weighted average cost basis which approximates to actual cost and is carried 
at the lower of cost or net realisable value. 
Cost includes all direct expenditure and other appropriate attributable costs incurred in bringing inventories to their present location and condition. Net 
realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. 
Provision is made for obsolete, slow-moving or damaged items where appropriate.
3.10 Trade and other receivables
Trade and other receivables are non-interest bearing and are on commercial terms. They are initially recognised at fair value and subsequently measured 
at amortised cost less allowances for expected credit losses, using the simplified approach, with adjustments for factors specific to each receivable.
3.11 Loans and advances from financial services customers and other banks
Loans and advances are initially recognised at fair value and subsequently held at amortised cost, using the effective interest method, less provision 
for impairment and recognised on the balance sheet when cash is advanced. 
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Notes to the consolidated financial statements continued
3 Material accounting policies continued
3.12 Assets held for sale
Assets are classified as held for sale if their carrying amount is to be recovered principally through a sale transaction rather than through continuing use and 
also only when the sale is highly probable within one year from the date of classification and the assets are available for sale in their present condition. Assets 
held for sale are stated at the lower of the carrying amount and fair value less costs to dispose. Any amounts no longer classified as assets held for sale are 
measured at the lower of its carrying amount before the asset was classified as held for sale, adjusted for any depreciation that would have been recognised 
had the asset not been classified as held for sale, and its recoverable amount at the date of the subsequent decision not to sell.
3.13 Trade and other payables
Trade payables are initially recognised at fair value and subsequently measured at amortised cost. Amounts are presented net of supplier arrangements due 
where there is a contractual right of offset.
3.14 Provisions
Provisions are recognised when the Group has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic 
resources will be required to settle the obligation and where the amount can be reliably estimated.
Provisions are measured at management’s best estimate of the consideration required to settle the obligation at the reporting date and discounted using a 
pre-tax rate that reflects current market assessments where the time value of money is deemed material. An increase in the provision due to the passage of 
time is recognised as an interest expense. 
Provisions for onerous contracts are recognised when the Group believes that the unavoidable costs of meeting or novating a contract exceed the economic 
benefits expected to be received under it. Where assets are dedicated to the fulfilment of a contract that cannot be redirected to other parts of the Group, 
an impairment charge is recognised to reduce the carrying value of the assets to £nil before recognising a separate onerous contract. 
A restructuring provision is recognised when the Group has developed a detailed formal plan and has raised a valid expectation in those affected that it will 
carry out the restructuring by starting to implement the plan or announcing its main features to those affected by it. The measurement of a restructuring 
provision includes only the direct expenditures arising from the restructuring.
a) Property provisions
Where the Group no longer operates from a leased property, onerous property contract provisions are recognised for the least net cost of exiting from the 
contract. The amounts provided are based on the Group’s best estimates of the likely committed outflows and site closure dates. These provisions do not 
include rent in accordance with IFRS 16, however do include unavoidable costs related to the lease such as service charges and insurance.
Property provisions also include provisions for dilapidations which are recognised where the Group has the obligation to make good its leased properties, 
which is when a decision to exit a lease has been made. This is the point at which a reliable estimate of the expected cost for dilapidations can be made. 
These provisions are recognised based on historically settled dilapidations which form the basis of the estimated future cash outflows. Any difference 
between amounts expected to be settled and the actual cash outflow is be accounted for in the period when such determination is made.
Where the Group is able to exit lease contracts before the expiry date or agree sublets, this results in the release of any associated property provisions. 
Such events are subject to the agreement of landlords, therefore the Group makes no assumptions on the ability to either exit or sublet a property until 
a position is agreed. Utilisation is expected to be in line with the profile of the leases to which the provisions relate.
b)	Insurance provisions
Provisions are based on assumptions regarding past claims experience and assessments by an independent actuary to provide a best estimate of the most 
likely or expected outcome.
c)	 Financial Services-related provisions
Financial Services loan commitment provisions reflect expected credit losses modelled in relation to loan commitments not yet recognised on the balance 
sheet, including on credit cards and Argos store cards. 
Other Financial Services-related provisions are primarily in relation to Argos Financial Services customers in respect of potential redress payable arising from 
the historic sales of Payment Protection Insurance (PPI). 
The eventual cost is dependent on response rates, uphold rates, complaint rates, redress costs and claim handling costs. The provision represents management’s 
best estimate of future costs. These assumptions are inherently uncertain and the ultimate financial impact may differ from the amount provided.
3.15 Financial instruments 
a) Financial assets
The Group classifies all of its financial assets as either amortised cost, FVOCI or FVTPL. 
The Group’s non-derivative financial assets comprise:
•	 Cash and cash equivalents 
•	 Trade and other receivables, excluding prepayments and accrued income 
•	 Amounts due from Financial Services customers and other banks 
•	 Financial assets at FVOCI 
To determine their classification and measurement category, all financial assets, except equity instruments and derivatives, are required to be assessed 
based on a combination of the entity’s business model for managing the assets and the instruments’ contractual cash flow characteristics.
In order for a financial asset to be classified and measured at amortised cost or FVOCI, it needs to give rise to cash flows that are ‘solely payments of principal 
and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level.
The business model assessment reflects how the Group manages the risks relating to the underlying financial assets, including whether the Group’s principal 
objective is to collect the contractual cash flows arising from the instruments (amortised cost), to sell the financial instruments (FVTPL) or a combination 
thereof (FVOCI).
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3 Material accounting policies continued
3.15 Financial instruments continued
a) Financial assets continued
Financial instruments at amortised cost
Financial assets that are principally held for the collection of contractual cash flows and which pass the SPPI test are classified as amortised cost. For the 
Group this includes cash, receivables and amounts due from Financial Services customers and other banks. The Group has no intention of trading these 
assets. With the exception of trade receivables that do not contain a significant financing component, the Group initially measures these financial assets 
at fair value plus transaction costs. Subsequently these assets are carried at amortised cost less impairment using the effective interest rate method. 
Income from these financial assets is calculated on an effective interest rate basis and is recognised in the income statement. 
Financial assets at fair value through other comprehensive income 
Financial assets that are held for both the purpose of collecting contractual cash flows and to sell are classified as FVOCI. They are included in non-current 
assets unless management intends to dispose of the investment within 12 months of the balance sheet date. Equity investments have been irrevocably 
designated as FVOCI. Subsequent to initial recognition at fair value plus transaction costs, these assets are recorded at fair value at each period end with the 
movements recognised in other comprehensive income until derecognition or impaired. On derecognition, the cumulative gain or loss previously recognised 
in other comprehensive income reserves is recognised in the income statement for debt instruments. Gains and losses on equity instruments are never 
recycled to the income statement. Dividends on financial assets at FVOCI are recognised in the income statement when the entity’s right to receive payment 
is established. 
Interest on financial assets at FVOCI debt instruments is recognised using the effective interest method.
Financial assets at fair value through profit and loss
The Group’s derivatives are classified as FVTPL. They are carried in the statement of financial position at fair value with net changes in fair value recognised 
in the income statement.
Financial assets are derecognised when the contractual cash flows from the asset have expired or have been transferred, usually by sale, and with them 
either substantially all the risks and rewards of the asset or significant risks and rewards, along with the unconditional ability to sell or pledge the asset.
b)	Financial liabilities	
The Group recognises all of its financial liabilities at amortised cost and all derivative financial liabilities are classified as FVTPL. Financial liabilities costs, 
including premiums payable on settlement or redemption and direct issue costs, are accounted for on an accrual basis in the income statement using 
the effective interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the period in which 
they arise.
The Group’s non-derivative financial liabilities comprise: 
•	 Borrowings 
•	 Trade and other payables, excluding deferred income, other taxes and social security costs payable, and other accruals 
•	 Amounts due to Financial Services customers and other banks 
•	 Lease liabilities
Interest-bearing bank loans, overdrafts, other deposits and amounts due to Sainsbury’s Bank customers are recorded initially at fair value, which is generally 
the proceeds received, net of direct issue costs. Subsequently, these liabilities are held at amortised cost using the effective interest rate method. Transaction 
costs are amortised on a straight-line basis over the life of the facility they relate to.
Financial liabilities are derecognised when the obligation under the liability is discharged, cancelled, or expires.
3.16 Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments to hedge its exposure to foreign exchange, interest rate and commodity risks. All derivative financial 
instruments are initially measured at fair value on the contract date and are also measured at fair value at subsequent reporting dates. Where derivatives do 
not qualify for hedge accounting, any changes in the fair value of the derivative financial instrument are recognised in the income statement as they arise.
To qualify for hedge accounting, the Group documents, at the inception of the hedge, the hedging risk management strategy, the relationship between the 
hedging instrument and the hedged item or transaction, the nature of the risks being hedged and an assessment of the effectiveness of the hedging 
relationship to ensure it is highly effective on an ongoing basis. 
Where a derivative does qualify for hedge accounting, any changes in fair value are recognised depending on the nature of the hedge relationship and the 
item being hedged as follows:
a) Cash flow hedges
Hedge relationships are classified as cash flow hedges where the derivative financial instruments hedge the Group’s exposure to variability in cash flows 
resulting from a highly probable forecasted transaction. These include the exchange rate risk of inventory purchases denominated in foreign currency, 
interest rate risk and commodity risk on purchases of power and fuel. Changes in the fair value of derivative financial instruments that are designated and 
effective as hedges of future cash flows are recognised directly in other comprehensive income and the ineffective portion is recognised immediately in the 
income statement. The cash flow hedge reserve therefore only contains amounts where hedge accounting applies.
If a cash flow hedge is hedging a firm commitment or forecast transaction that results in the recognition of a non-financial asset or liability, then, at the time 
the asset or liability is recognised, the associated gains or losses on the derivative that had previously been recognised in other comprehensive income are 
included in the initial measurement of the asset or liability. This applies to the Group’s foreign currency hedges in relation to inventory purchases.
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Notes to the consolidated financial statements continued
3 Material accounting policies continued
3.16 Derivative financial instruments and hedge accounting continued
b)	Fair value hedges
The Group designates certain derivatives as fair value hedges where the derivative financial instrument hedges the change in fair value of the particular risks 
inherent in recognised assets or liabilities (fair value hedges).
The Group has adopted IFRS 9 hedge accounting requirements for its fair value hedges of investment securities and its one-for-one hedge on Tier 2 Debt 
issuance within Sainsbury’s Bank. The Group continues to adopt IAS 39 for its macro portfolio fair value hedges of fixed rate personal loans and up to the 
point of disposal in August 2023, also residential mortgages, as it is permitted to do so under IFRS 9 and until the point that the new macro hedge accounting 
standard is finalised and adopted.
Fair value hedging matches the change in fair value of designated hedged items against the corresponding change in value of the hedging derivative. 
The designated hedged item can be a recognised asset or liability, a firm commitment, or an identified portion of an asset.
The effective part of any gain or loss on the hedged item adjusts the balance of the hedged item and is recognised in the income statement, offsetting the 
gain or loss on the hedging derivative. Should circumstances arise where the hedge relationship subsequently proves ineffective, is early settled, or is 
terminated, the adjustment to the balance of the hedged item is amortised over the remaining life of the hedged item and to the income statement.
Micro fair value hedging – IFRS 9
The Group has purchased a number of fixed rate debt investment securities and has issued fixed rate subordinated debt within Sainsbury’s Bank. These 
instruments are hedged via plain vanilla interest rate swaps, with the critical economic terms of both the hedging instrument and hedged item matching. 
The notional amount, fixed interest legs and maturity dates are economically matched. 
Portfolio fair value hedging – IAS 39
The Group uses portfolio fair value hedging as a risk management tool for hedging interest rate risk on the personal loans and up to the point of disposal in August 
2023, also the mortgage portfolio. Portfolio fair value hedging allows the designation of the whole or part of a portfolio of assets or liabilities with similar risk 
exposures. The hedged item can be designated based on expected maturities to match the hedging derivative maturity. Hedge effectiveness is considered to have 
been met where the change in fair value of the hedged item offsets the change in fair value of hedging instruments, within the 80 to 125 per cent ratio corridor. 
3.17 Cash and cash equivalents
Cash and bank balances comprise cash in hand and at bank, deposits at central banks, investments in money market funds and deposits, and other 
short-term highly liquid investments.
To be classified as cash and cash equivalents, an asset must:
•	 Be readily convertible into cash
•	 Have an insignificant risk of changes in value
•	 Have a maturity period of typically three months or less at acquisition
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and cash 
equivalents for the purposes of the cash flow statement.
3.18 Cash flow statement classifications
The following cash receipts and payments are presented within the following sections of the cash flow statement: 
a)	Interest, dividends and taxes
Included in operating cash flows 
•	 Interest paid on borrowings as they are held for cash management purposes.
Included in cash flows from investing activities 
•	 Interest received on bank deposits and other financial assets as well as dividends received as they represent returns on the Group’s investments.
b) Lease payments and receipts
Included in operating cash flows 
•	 Cash payments for the interest element of lease liabilities consistent with presentation of interest payments.
•	 Short-term lease payments, payments for leases of low-value assets and variable lease payments that are not included in the measurement of the 
lease liabilities.
•	 Cash receipts in relation to sub-leases (both operating and finance leases).
Included in cash flows from financing activities 
•	 Cash payments for the principal element of the lease liabilities are presented within financing activities.
3.19 Retirement benefit obligations
a)	Defined contribution pension schemes
The Group contributions to defined contribution pension schemes are charged to the income statement as incurred. Any contributions unpaid at the balance 
sheet date are included as an accrual as at that date. The Group has no further payment obligations once the contributions have been paid. 
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3 Material accounting policies continued
3.19 Retirement benefit obligations continued
b)	Defined benefit pension scheme (Sainsbury’s Pension Scheme)
The surplus or deficit recognised in the balance sheet for defined benefit schemes represents the difference between the fair value of the plan assets and the 
present value of the defined benefit obligation at the balance sheet date. The defined benefit obligation is actuarially calculated on an annual basis using the 
projected unit credit method. 
Actuarial gains and losses are reported in the statement of other comprehensive income as incurred, and comprise both the effects of changes in actuarial 
assumptions and experience adjustments arising because of differences between the previous actuarial assumptions and what has actually occurred.
The income statement charge consists of a financing charge, which is the net of interest cost on pension scheme liabilities and interest income on plan assets 
and defined benefit pension scheme expenses.
The financing charge is determined by applying the discount rate used to measure the defined benefit obligation to the pension scheme liabilities and plan 
assets at the beginning of the financial year.
IFRIC 14
Under IFRIC 14, a company is required to measure any economic benefits available to it in the form of refunds or reductions to future contributions at 
the maximum amount that is consistent with the terms and conditions of the pension scheme. These are regarded as available to a company if it has an 
unconditional right to realise them at some point during the life of the pension scheme or when all benefits are finally settled. Such an unconditional right 
would not exist when the availability of the refund or the reduction in future contributions would be contingent upon factors beyond the company’s control.
Management is of the view that it has an unconditional right to a refund of surplus under IFRIC 14. As such no adjustment has been made for potential 
additional liabilities.
In forming this conclusion management has considered whether the Group can control the run-off of the Scheme until there are no liabilities left, consistent 
with IFRIC 14. For example, if the Trustee has a unilateral power to wind up the Scheme while there are liabilities remaining, then it is viewed that the Group 
cannot access surplus through this route. For both sections, management have assessed that the Group can control run-off until no liabilities remain by 
complying with its obligations under the Scheme rules and pensions legislation, and there will therefore be a gradual settlement of the planned liabilities 
over the life of each section. 
The Scheme rules list certain situations under which the Trustee can wind up the Scheme; however, whilst there is gradual settlement of the Scheme’s 
liabilities, these are concluded to be within the control of the Group. As a result, it is concluded that the Trustee does not have a unilateral power to wind up 
the Scheme nor augment benefits while the Scheme is ongoing.
3.20 Share-based payments
The Group provides benefits to employees (including Directors) of the Group in the form of equity-settled and cash-settled share-based payment 
transactions, whereby employees render services in exchange for shares, rights over shares or the value of those shares in cash terms.
For equity-settled share-based payments, the fair value of the employee services rendered is determined by reference to the fair value of the shares awarded 
or options granted, excluding the impact of any non-market vesting conditions. All share options are valued using an option pricing model (Black-Scholes). 
This fair value is charged to the income statement over the vesting period of the share-based payment scheme with a corresponding increase in equity. 
For cash-settled share-based payments, the fair value of the employee services rendered is determined at each balance sheet date and the charge recognised 
through the income statement over the vesting period of the share-based payment scheme, with a corresponding increase in accruals. 
The value of the charge is adjusted in the income statement over the remainder of the vesting period to reflect expected and actual levels of options vesting, 
with the corresponding adjustments made in equity and accruals.
4 Significant judgements and estimates
The preparation of financial statements requires the use of judgements, estimates and assumptions that affect the reported amounts of assets and liabilities 
at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from 
those estimates. 
Judgements and estimates are evaluated regularly and are based on historical experience and other factors, including expectations of future events that 
are believed to be reasonable under the circumstances. Any revisions to accounting estimates are recognised in the period in which the estimate is revised. 
In assessing the Group’s judgements and sources of estimation uncertainty, consideration has been given to the impact of climate change risk on these. 
Aside from impairment of non-financial assets (refer to note 17) and post-employment benefits (refer to note 34), climate change risks do not have any 
impacts on the Group’s judgements or sources of estimation uncertainty.
Consideration has also been given to the judgements and estimates arising from the announcement that financial services products to be offered in the 
future will be provided by dedicated financial services providers through a distributed model and over time this will result in a phased withdrawal from the 
core Banking business. Key judgements have included the classification of costs as non-underlying items (note 4.1 a)), the timing of recognition of provisions, 
and the probability weighting on related cash flow projections to support such charges which assume two scenarios comprising a sale of certain financial 
services products as opposed to a run down. Key estimates have included management forecasts of future performance used to determine impairments 
(note 4.2 c)), and the amounts of provisions recognised (note 4.2 d)).
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148  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
4 Significant judgements and estimates continued
4.1 Significant judgements
a) Non-underlying items
In order to provide shareholders with additional insight into the year-on-year performance of the business, underlying profit measures are provided to 
supplement the reported IFRS numbers and reflect how the business measures performance internally. These adjusted measures exclude items recognised 
in reported profit, which, if included, could distort comparability between periods.
Determining which items are to be adjusted requires judgement, in which the Group considers items which are significant either by virtue of their size and/or 
nature, or that are non-recurring in that they do not relate to the ongoing business. The same assessment is applied consistently to any reversals of prior 
non-underlying items. 
An analysis of non-underlying items is set out in note 5.
b) Consolidation of structured entities 
A structured entity is one in which the Group does not hold the majority interest but where voting rights are not the dominant factor in determining control. 
Sainsbury’s Thistle Scottish Limited Partnership (‘the Partnership’) is a structured entity in which both the Group and Pension Scheme Trustee hold an interest 
where the relevant activities are the funding of the pension scheme (the Scheme). 
Furthermore, a general partner wholly owned by the Group has exclusive responsibility for the management and control of the Partnership and sole authority 
to exercise the Partnership’s rights including the ability to make additional contributions. As the Group can direct the Partnership’s relevant activities and 
affect its returns, it has been concluded that the Group controls the Partnership, despite not having a majority interest and has therefore been consolidated. 
Further information is included in note 34.1.
c) 	Aggregation of operating segments
The Group’s operating segments have been determined based on the information regularly provided to the Chief Operating Decision Maker (CODM), which has 
been determined to be the Group Operating Board. This information is used to make optimal decisions on the allocation of resources and assess performance.
The CODM is presented information for the following operating segments:
•	 Retail – Food
•	 Retail – General Merchandise and Clothing
•	 Financial Services
Management have considered the economic characteristics, in particular average gross margin, similarity of products, production processes, customers, sales 
methods and regulatory environment of its two Retail segments. In doing so it has been concluded that they should be aggregated into one ‘Retail’ segment 
within the financial statements given the similar economic characteristics between the two. This aggregated information provides users the financial 
information needed to evaluate the business and the environment in which it operates.
d) Lease terms 
The inclusion of a lease extension period or lease break period in the lease term requires consideration of all relevant factors that create an economic 
incentive for the Group to exercise them. For leased properties, this includes the current and expected profitability of the respective site, as well as the length 
of time until the option can be exercised. Any changes to the Group’s judgement over lease terms will impact both the right-of-use asset and lease liability. 
e) Classification of cash flows as part of asset acquisition 
As part of the asset acquisition, as described in note 2.6, significant judgement was applied when considering the classification of the pre-funded cash flows 
which formed part of the total consideration within the Group’s cash flow statement as cash flows from investing activities.
4.2 Significant estimates
a) Revenue recognition: Fair value of Nectar points
The Group estimates the fair value of points awarded under the Nectar programme by reference to the value per point to a customer, multiplied by expected 
breakage assumptions. Breakage represents management’s estimate of points issued that will never be redeemed and is therefore subject to uncertainty. 
Breakage is estimated by management based on the terms and conditions of membership and historical accumulation and redemption patterns. A 
sensitivity analysis, showing the impact of a change in breakage estimate on the deferred points liability, is set out in note 23.3.
b) Lease liabilities: Derivation of discount rates 
Lease liabilities are measured at the present value of lease payments to be made over the lease term, discounted using the incremental borrowing rate (IBR) 
at the lease commencement date (for additions) or at the lease modification date (for modifications).
The IBRs depend on the start date and term of the lease, and are determined based on a number of inputs including a reference (risk free) rate and 
adjustments to reflect the Group’s credit risk. The reference rates are based on UK overnight swap rates and the credit risk adjustments are based on the 
prices of instruments issued by the Group and quoted credit default swaps (CDS). Note 15.1 e) includes the impact that a reasonable possible change in the IBR 
would have had on the lease liability additions and modifications recognised during the year. 
c) Impairments
Non-financial assets
Goodwill is required to be valued annually to assess the requirement for potential impairment. Other assets are assessed on an ongoing basis to determine 
whether circumstances exist that could lead to the conclusion that the net book value of such assets is not supportable. Impairment testing is carried out in 
accordance with the methodology described in note 17. Such calculations require estimation regarding the appropriate discount factors and in the case of 
goodwill in particular, long-term growth prevalent in a particular market as well as short and medium-term business plans. Management draws upon 
experience as well as external resources in determining these estimates. 
In assessing impairment of property, plant & equipment and intangible assets, discounted cash flow methods are used as described in note 17.1. Judgement 
is required in determining the appropriate discount factors as well as the short and medium-term business plans. Consistent with goodwill, the Directors 
draw upon experience and external resources in determining these estimates. 
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J Sainsbury plc Annual Report and Financial Statements 2024  149
4 Significant judgements and estimates continued
4.2 Significant estimates continued
c) Impairments continued
Financial assets
Impairments on financial assets are accounted for using a three-stage forward-looking ECL approach as set out in note 28.2 e). 
Measurement of ECL reflects an unbiased and probability weighted amount that is determined by evaluating a range of forward-looking macro-economic 
assumptions. An external supplier provides economic forecasts which are subject to review, challenge and approval through the Bank’s governance processes.
The ECL models utilise four scenarios including a ‘base case’ scenario considered to be the most likely outcome together with an upside, downside scenario 
and severe downside. The outcomes of the scenarios are set out in note 28.2 f).
d) Provisions
The Group’s provisions are based on estimates of the actual costs and timing of future cash flows, which are dependent on future events and market 
conditions. Thus, there is inherently an element of estimation uncertainty within the provisions recognised. Any difference between expectations and the 
actual future liability will be accounted for in the period when such determination is made.
The provisions are most sensitive to estimates of the future cash outflows. A sensitivity showing the impact that a reasonable possible change in expenditure 
required to settle the present obligation is set out in note 25.2.
e) Post-employment benefits 
Assets
The Sainsbury’s Pension Scheme (the Scheme) holds some private market assets as they are expected to deliver a more favourable risk/return profile than 
public market equivalents. These assets are relatively illiquid (likely to be realised over approximately five years) but the Scheme holds sufficient liquid assets 
(cash, gilts and other liquid securities) to be confident that it can meet its pension and collateral obligations over time. 
The valuation of these assets is based on the audited accounts of the funds, where available, and net asset value statements from the investment managers 
where recent accounts are not available. For many of these investments, the valuations provided are at 30 September. A roll-forward is therefore required to 
be performed for these valuations, adjusting for cash received or paid and applying the changes seen in relevant liquid indices. The valuation of these assets is 
sensitive to the indices used and a sensitivity to changes in these indices is set out in note 34.6.
Liabilities
The present value of post-employment benefit obligations is determined on an actuarial basis using various assumptions, including the discount rate, 
inflation rate, future pension increases and mortality assumptions. Any changes in these assumptions will impact the carrying amount as well as the net 
pension finance income/(cost). Key assumptions and sensitivities for post-employment benefit obligations are disclosed in note 34.7. 
5 Non-underlying items 
2024
2023
Note
Restructuring 
and 
impairment
5.1
£m
Pensions
5.2
£m
Other
5.3
£m
 Total
£m
Restructuring 
and 
impairment
5.1
£m
Pensions
5.2
£m
Other
5.3
£m
 Total
£m
Revenue
(21)
—
—
(21)
—
—
—
— 
Cost of sales
(73)
—
(66)
(139)
(384)
 — 
(29)
(413)
Administrative (expense)/income
(273)
(7)
(29)
(309)
(14)
2
(23)
(35)
Other income
—
—
6
6
11
 — 
27
38
Affecting operating profit
(367)
(7)
(89)
(463)
(387)
2
(25)
(410)
Net finance (costs)/income
(1)
51
(11)
39
 — 
56
(9)
47
Affecting profit before tax
(368)
44
(100)
(424)
(387)
58
(34)
(363)
Income tax credit
11
45
37
Affecting profit after tax
(379)
(326)
The impact of non-underlying items on Retail cash generated from operations is presented in note A2.2.
5.1 Restructuring and impairment
Comprises restructuring charges of £368 million (2023: £106 million) and non-restructuring related impairment charges of £nil million (2023: £281 million), all 
of which was recognised within cost of sales.
a) Restructuring
Financial Services model 
In January 2024, the Group announced that financial services products to be offered in the future will be provided by dedicated financial services providers 
through a distributed model and over time this would result in a phased withdrawal from the core Banking business. Costs associated with this restructuring 
are set out in the table below with key components comprising full impairment of non-financial assets (comprising mainly computer software for which the 
level of activities which it was designed to fulfil is now significantly curtailed in terms of both volume and period use), additional allowances arising from a 
reassessment of the effective interest rate applied to the amortised cost of financial assets, onerous contracts and goodwill. Further costs associated with 
this restructuring will be incurred in future years once more detailed plans to execute these changes are formulated and communicated.
Sainsbury’s structural integration 
In the year ended 6 March 2021, the Group announced a restructuring programme to accelerate the structural integration of Sainsbury’s and Argos and 
further simplify the Argos business; create a new supply chain and logistics operating model, moving to a single integrated supply chain and logistics 
network across Sainsbury’s and Argos; and further rationalise/repurpose the Group’s supermarkets and convenience estate. The programme also considered 
the Group’s Store Support Centre ways of working.
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150  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
5 Non-underlying items continued
5.1 Restructuring and impairment continued
b)	Non-Restructuring items
Impairments of non-financial assets
Separate from restructuring initiatives and property-related transactions, the Group has assessed whether there were any indicators of impairment or 
reversals of impairment. No indicators were present in the current financial year which therefore resulted in no non-restructuring related impairments or 
reversals of impairment. In the prior financial year, the level of uncertainty within the wider macroeconomic environment, including sustained increases in 
the Bank of England gilt rates, represented an indicator of impairment. It was determined that the increase in discount rates was a significant impairment 
indicator and therefore a full impairment review was undertaken.
Analysis of restructuring and impairment items 
2024
2023
 
Financial
 Services 
model
Sainsbury’s 
structural
 integration
Total
Sainsbury’s 
structural 
integration
Impairment of 
non-financial 
assets
Total
 
Note
£m
£m
£m
£m
£m
£m
Non-financial asset 
impairments
– Property, plant and equipment
17
(9)
(1)
(10)
(8)
(141)
(149)
– Right-of-use assets
17
(3)
(3)
(6)
(21)
(122)
(143)
– Intangible assets
17
(200)
—
(200)
(5)
(18)
(23)
 
(212)
(4)
(216)
(34)
(281)
(315)
Accelerated depreciation of assets 
a)
—
(19)
(19)
(20)
—
(20)
Employee costs
b)
(8)
(33)
(41)
(54)
—
(54)
Onerous contracts
c)
(17)
—
(17)
— 
—
—
Property closure provisions
d)
—
(33)
(33)
1
—
1
Effective interest rate adjustment to financial assets
e)
(21)
—
(21)
—
—
—
Other (costs)/gains
f)
(15)
(6)
(21)
1
—
1
 
(273)
(95)
(368)
(106)
(281)
(387)
a)	 The remaining useful economic lives of corresponding sites have been reassessed to align with closure dates, resulting in an acceleration in depreciation of these assets. The existing 
depreciation of these assets (depreciation that would have been recognised absent of a closure decision) is recognised within underlying expenses, whereas accelerated depreciation above 
this is recognised within non-underlying expenses.
b)	 Comprises severance costs and for the Financial services model also includes retention bonuses relating to performance in 2024.
c)	
Comprises long-dated IT contracts where anticipated early termination will result in unavoidable costs of meeting obligations under the contracts which exceed the economic benefits 
expected to be received under them. Costs represent the lower of the costs of fulfilling contracts and the costs of terminating. Such amounts are reflected in provisions as set out in note 25.
d)	 Relates to onerous lease costs, dilapidations and strip-out costs on sites that have been identified for closure, as well as business rates for sites the Group no longer operates from which are 
recognised as incurred. The prior year includes amounts reversed in relation to sites no longer being exited as part of the programme. Upon initial recognition of such provisions, 
management uses its best estimates of the relevant costs to be incurred as well as expected closure dates. Such amounts are reflected in provisions as set out in note 25.
e)	
The withdrawal from core banking operations has a commercial impact upon future management initiatives and actions which could lead to different customer behaviours than previously 
forecasted. This resulted in revised assumptions about customer behaviours which led to a reduction in the amortised cost of financial assets (credit cards) shown in loans and advances to 
customers in note 21 with the impacts being recognised in revenue.
f)	
Other costs comprise predominantly consultancy costs offset by profits recognised on properties sold during the financial year which had previously been impaired as part of the 
restructuring programme.
5.2 Pensions
Such amounts relate to the defined benefit pension scheme (the Scheme) and are treated as non-underlying owing to the Scheme being closed to future 
accrual and accordingly not forming part of ongoing operating activities. More detailed analysis in note 34.2. 
5.3 Other 
2024
2023
Note
£m
£m
Disposal of mortgage book
a)
(14)
—
Legal disputes
b)
—
30
Property-related transactions
c)
(15)
(9)
Non-underlying finance and fair value movements
d)
(56)
(38)
Acquisition adjustments
e)
(15)
(20)
ATM business rates reimbursement
—
3
 
(100)
(34)
a)	 During the financial year, the Group disposed of its mortgage portfolio for proceeds of £446 million which resulted in a non-underlying charge of £(14) million, included within 
administrative expenses, which includes a loss on disposal including goodwill, transaction costs and the recognition of onerous contract provisions.
b)	 Consists of other income representing receipt from credit card companies in respect of overcharges for credit card processing (interchange) fees.
c)	
Comprises an impairment charge of £19 million of property, plant and equipment recognised in cost of sales as part of the asset acquisition of 21 stores described in note 2.6, whereby the 
asset base of these stores’ CGUs had significantly changed as a result of the transaction and therefore were reviewed for impairment. Offset by a gain on disposal of non-trading properties 
of £4 million recognised in other income. (2023: loss on disposal of non-trading properties of £3 million recognised in other income, and £6 million of costs relating to a property transaction 
recognised in cost of sales and administrative expenses).
d)	 Comprises £46 million (2023: £29 million) within cost of sales relating to unfavourable movements on long-term, fixed price power purchase arrangements (PPAs) with independent producers. 
These are classified as derivatives which are not in a hedge relationship and owing to potentially significant fluctuations in value from external market factors are treated as non-underlying to 
enable consistency between periods. Remaining movements of £10 million (2023: £9 million) are within net finance costs and relate to lease interest paid on impaired non-trading sites.
e)	
Comprises the unwind of non-cash fair value adjustments arising from the Home Retail Group and Nectar UK acquisitions. Classification as non-underlying is because these assets would 
not normally be recognised outside of a business combination.
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J Sainsbury plc Annual Report and Financial Statements 2024  151
6 Revenue
Disaggregated revenue 
 
2024
2023
 
£m
£m
Retail
Grocery and General Merchandise & Clothing (GM&C)
27,830
25,993
Fuel 
4,254
4,967
32,084
30,960
Financial Services
Interest receivable
472
394
Fees and commissions
144
137
616
531
Total 
32,700
31,491
7 Segment reporting
The Group’s operating segments have been determined based on the information regularly provided to the Chief Operating Decision Maker (CODM), which 
has been determined to be the Group Operating Board, which is used to make optimal decisions on the allocation of resources and assess performance.
The Group’s reportable operating segments have been identified as:
•	 Retail: comprising the sale of food, household, general merchandise, clothing and fuel primarily through store and online channels
•	 Financial Services: comprising banking and insurance services through Sainsbury’s Bank and Argos Financial Services
The CODM uses underlying profit before tax as the key measure of segmental performance as it represents the ongoing trading performance with additional 
insight into year-on-year performance that is more comparable over time. As described in note 2.5 and 4.1 a), the use of underlying profit before tax aims to 
provide parity and transparency between users of the financial statements and the CODM in assessing the core performance of the business and 
performance of management. 
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. 
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.
7.1 Income statement 
2024
2023
 
Retail
Financial 
Services
Group
Retail
Financial 
Services
Group
Note
£m
£m
£m
£m
£m
£m
Underlying revenue
Retail sales to customers
32,084 
— 
32,084 
30,960
—
30,960
Financial Services to customers
— 
637 
637 
—
531
531
32,084 
637 
32,721 
30,960
531
31,491
 
Underlying operating profit
966 
29 
995 
926
46
972
Underlying finance income
30 
—
30 
18
—
18
Underlying finance costs
(324)
— 
(324)
(300)
—
(300)
Underlying profit before tax
672 
29 
701 
644
46
690
Non-underlying items
5
 
 
(424)
 
 
(363)
Profit before tax
 
 
277 
 
 
327
Income tax expense
11
 
 
(140)
 
 
(120)
Profit for the financial year
 
 
137 
 
 
207
7.2 Balance sheet
2024
2023
Retail
Financial 
Services
Group
Retail
Financial 
Services
Group
£m
£m
£m
£m
£m
£m
Assets
18,288 
6,771 
25,059 
18,925
7,231
26,156
Investments in joint ventures and associates
2 
— 
2 
2
—
2
Segment assets
18,290 
6,771 
25,061 
18,927
7,231
26,158
Segment liabilities
(12,171)
(6,022)
(18,193)
(12,584)
(6,321)
(18,905)
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152  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
7 Segment reporting continued
7.3 Other segment items
2024
2023
Retail
Financial 
Services
Group
Retail
Financial 
Services
Group
Note
£m
£m
£m
£m
£m
£m
Additions to non-current assets
 Property, plant and equipment 
14
1,654
1 
1,655 
532
2
534
 Intangible assets 
16
165 
13 
178 
194
19
213
 Right-of-use assets 
15
435 
3 
438 
398
—
398
Depreciation expense
 
 
 
 
 
 
 Property, plant and equipment 
14
538 
1 
539 
565
1
566
 Right-of-use assets 
15
449 
1 
450 
469
1
470
Amortisation expense
 
 
 
 
 
 
 Intangible assets 
16
159 
30 
189 
141
31
172
Impairment of non-financial assets
17
23 
174 
197 
301
—
301
Impairment of goodwill
17
— 
38 
38 
14 
— 
14 
Impairment (reversal)/loss on financial assets
(4)
102 
98 
2
76
78
Share-based payments
35
83 
6 
89 
54
5
59
7.4 Geographical segments
In the current year and the prior year, the Group predominantly traded in the UK and the Republic of Ireland and consequently the majority of revenues, 
capital expenditure and segment net assets arise there. The profits, revenues and assets of the businesses in the Republic of Ireland are not material.
8 Supplier arrangements
The types of supplier arrangements applicable to the Group are as follows:
•	 Discounts and supplier incentives: Represent the majority of all supplier arrangements and are linked to individual unit sales. The incentive is typically 
based on an agreed sum per item sold on promotion for a period and therefore is considered part of the purchase price of that product
•	 Fixed amounts: Agreed with suppliers primarily to support in-store activity including promotions, such as utilising specific space
•	 Supplier rebates: Typically agreed on an annual basis, aligned with the Group’s financial year. The rebate amount is linked to pre-agreed targets such as 
sales volumes
•	 Marketing and advertising income: Advertising income from suppliers and online marketing and advertising campaigns within Argos
Recognised in income statement
 
 
2024
2023
 
 
£m
£m
Fixed amounts
 
271 
192 
Supplier rebates
 
76 
94 
Marketing and advertising income
 
134 
97 
 
481 
383 
Discounts and supplier incentives are not shown as they are deemed to be part of the cost price of inventory.
Held on the balance sheet
 
 
2024
2023
 
 
£m
£m
Within inventory
 
(3)
(4)
Within current trade receivables
 
Supplier arrangements due
 
47
45
Accrued supplier arrangements
 
48
43
Within current trade payables
 
Supplier arrangements due
 
39
49
Accrued supplier arrangements
 
1
2
Total supplier arrangements
 
132
135
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J Sainsbury plc Annual Report and Financial Statements 2024  153
9 Operating profit
9.1 Operating profit is stated after charging/(crediting):
 
2024
2023
 
Footnote
Note
£m
£m
Employee costs
9.2
3,879
3,578
Inventories recognised as an expense within cost of sales
 
26,087
25,198
Write-down of inventories
 
672
613
Depreciation 
– Property, plant and equipment
a)
14
539
566
– Right-of-use assets
15
450
470
Amortisation
– Intangible assets
a)
16
189
172
Impairment of non-financial assets
17
197
301
Impairment of goodwill
17
38
14
Short-term lease expense
 
30
26
Sublet income
 
(46)
(48)
(Profit)/Loss on disposal
– Property, plant and equipment
(5)
(8)
– Intangible assets
—
(1)
– Lease terminations
(11)
(6)
– Amounts due from Financial Services customers
14
—
Foreign exchange loss/(gain)
 
12
(18)
a)	 Includes the unwind of acquisition adjustments as set out in note 5.3.
9.2 Employee costs
 
2024
2023
 
£m
£m
Wages and salaries, including bonus and termination benefits 
3,348 
3,088 
Social security costs
254 
240 
Pension costs – defined contribution schemes
188 
191 
Share-based payments expense
89 
59 
 
3,879 
3,578 
9.3 Employee numbers
 
2024
2023
Average number of employees, including Directors:
‘000
‘000
Full-time
57
63
Part-time
95
99
 
152
162
Full-time equivalent
100
107
Details of key management compensation can be found in note 38.1 and within the Directors’ Remuneration Report on pages 99 to 117.
9.4 Auditor’s remuneration
 
2024
2023
 
 Note
£m
£m
Audit of the parent company and consolidated financial statements
1.2
1.2
Audit of the Company’s subsidiaries
2.4
2.6
Audit-related assurance services, including half-year review
 
0.1
0.2
3.7
4.0
Non-audit services
33
—
0.1
Total fees
 
3.7
4.1
2023: Non-audit services relate to services provided by the Group’s auditor in relation to issuance of Sainsbury’s Bank Tier 2 Capital in September 2022.
10 Finance income and finance costs 
 
2024
2023
 
Underlying
Non –
 underlying
Total
Underlying
Non –
 underlying
Total
 
£m
£m
£m
£m
£m
£m
Interest on bank deposits and other financial assets
28 
— 
28 
16 
— 
16 
IAS 19 pension financing income
—
51 
51 
— 
56 
56 
Finance income on net investment in leases
2 
— 
2 
2 
— 
2 
Finance income
30 
51 
81 
18 
56 
74 
Secured borrowings
(38)
—
(38)
(41)
— 
(41)
Unsecured borrowings
(33)
— 
(33)
(1)
— 
(1)
Lease liabilities
(253)
(11)
(264)
(258)
(9)
(267)
Provisions – amortisation of discount
— 
(1)
(1)
— 
— 
—
Finance costs
(324)
(12)
(336)
(300)
(9)
(309)
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Financial Statements

154  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
11 Taxation
11.1 Income statement
 
 
2024
£m
2023
£m
Current tax
UK Corporation tax
100
105 
Overseas tax
—
3 
(Over)/under provision in prior years
(4)
2 
96
110 
Deferred tax
Origination and reversal of temporary differences
24
9 
(Over)/under provision in prior years
(19)
3 
Adjustment from change in applicable rate of deferred tax
(1)
(2)
Derecognition of capital losses
40
— 
44
10 
Total income tax expense
140 
120 
Analysed as:
 
Underlying tax
185 
157 
Non-underlying tax
(45)
(37)
Total income tax expense
140 
120 
Underlying tax rate
26.4%
22.8%
Effective tax rate
50.5%
36.7%
The effective tax rate of 50.5 per cent (2023: 36.7 per cent) is higher than the standard rate of corporation tax in the UK of 25 per cent as a result of the 
differences set out below:
 
Underlying
Non-
underlying
2024
Total
Underlying
Non-
underlying
 2023
Total
 
Footnote
£m
£m
£m
£m
£m
£m
Profit before tax
701
(424)
277
690
(363)
327
Income tax at UK corporation tax rate of 24.6% (2023: 19.0%):
a)
172
(104)
68
131
(69)
62
Disallowed depreciation on UK properties
36
—
36
27
—
27
Disallowed depreciation on right-of-use assets
3
—
3
3
—
3
Loss on disposal of properties
—
3
3
—
 —
—
Impairment of non-financial assets
—
11
11
—
15
15
Restructuring programmes
—
3
3
—
13
13
Other
(3)
3
—
(4)
1
(3)
(Over)/under provision in prior years
(23)
—
(23)
7
(2)
5
Revaluation of deferred tax balances
—
(1)
(1)
(7)
5
(2)
Derecognition of capital losses
b)
—
40
40
—
—
—
185
(45)
140
157
(37)
120
a)	 The UK corporation tax rate increased from 19% to 25% with effect from 1 April 2023. A blended rate of 24.6% is used in the reconciliation above to reflect this change.
b)	 Following the asset acquisition detailed in note 2.6, capital gains were no longer anticipated to crystallise, giving rise to a tax charge of £40 million. The deferred tax liability held against 
the property pool was also derecognised and released, resulting in an £80 million credit recognised within other comprehensive income.
The Spring Budget on 21 March 2023 confirmed the introduction of Pillar Two reporting requirements for the UK, and were enacted on 18 July 2023, confirming 
that the rules will apply to the Group for the period ending 1 March 2025. Pillar Two reporting introduced a global minimum 15 per cent tax rate by the end of 
2023 and the Group will be required to file certain returns evidencing the payment of tax at this rate. The potential impact of this has been assessed based on 
the most recent tax filings, country by country reporting and financial statements for the constituent entities in the Group, and it is not considered that there 
is a material top-up tax liability at this stage under the transitional safe harbour rules.
It is unclear if the Pillar Two model rules create additional temporary differences, whether to remeasure deferred taxes and which tax rate to use to measure 
deferred taxes. The Group has therefore applied the mandatory temporary exception in the amended IAS 12 ‘Income taxes’ from the requirement to recognise 
or disclose information about deferred tax assets and liabilities related to the proposed Pillar Two model rules.
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J Sainsbury plc Annual Report and Financial Statements 2024  155
11 Taxation continued
11.2 Income tax charged or (credited) to equity and/or other comprehensive income
2024
2023
 
Current tax
Deferred tax
Total
Current tax
Deferred tax
Total
£m
£m
£m
£m
£m
£m
Share based payment reserve
(3)
3
—
(3)
(4)
(7)
Actuarial reserve
(8)
(97)
(105)
(25)
(322)
(347)
Financial asset reserve
(2)
(80)
(82)
—
(14)
(14)
Cash flow hedge
—
(17)
(17)
—
—
—
(13)
(191)
(204)
(28)
(340)
(368)
The current and deferred tax in relation to the Group’s defined benefit pension scheme’s remeasurements and available-for-sale fair value movements have 
been charged or credited through other comprehensive income where appropriate.
11.3 Movements in deferred tax (prior to offsetting balances in same tax jurisdiction)
 
Accelerated 
capital 
allowances
Capital
 losses
Fair value 
movements
Rolled over
 capital gains
Retirement 
benefit 
obligations
Share-based
 payments
Leases
Other
Total
 
£m
£m
£m
£m
£m
£m
£m
£m
£m
5 March 2023
(166)
87
(102)
(93)
(330)
32
109
(13)
(476)
Credit/(charge) to income 
statement
32
(3)
4
1
(11)
6
(29)
(5)
(5)
Credit/(charge) to equity or 
other comprehensive income
—
—
97
—
97
(3)
—
—
191
Revaluation adjustment to 
income statement
—
—
—
—
—
—
1
—
1
Derecognition of deferred tax 
asset
—
(40)
—
—
—
—
—
—
(40)
2 March 2024
(134)
44
(1)
(92)
(244)
35
81
(18)
(329)
6 March 2022
(173)
87
(133)
(93)
(640)
18
132
(4)
(806)
Credit/(charge) to income 
statement
3
—
13
—
(11)
8
(20)
(5)
(12)
Credit to equity or other 
comprehensive income
—
—
14
—
328
3
—
—
345
Revaluation adjustment to 
income statement
4
—
4
—
(1)
2
(3)
(4)
2
Revaluation adjustment to 
equity or other comprehensive 
income
—
—
—
—
(6)
1
—
—
(5)
4 March 2023
(166)
87
(102)
(93)
(330)
32
109
(13)
(476)
 
2024
2023
 
£m
£m
Total deferred tax liabilities
(489)
(704)
Total deferred tax assets
160
228
Net deferred income tax liability recognised in non-current liabilities
(329)
(476)
Deferred tax assets have not been recognised in respect of capital losses of £355 million (2023: £194 million) for which their use against chargeable capital 
gains is restricted. These capital losses have no date of expiry. Deferred income tax assets and liabilities are only offset where there is a legally enforceable 
right of offset and relate to taxes levied by the same tax authority.
12 Earnings per share
The calculations of basic and underlying basic earnings per share are based on profit after tax and underlying profit after tax for the financial year, respectively, 
divided by the weighted average number of Ordinary shares in issue during the year, excluding own shares held by the Employee Share Ownership Trust (ESOT). 
Underlying earnings per share figures, which represent alternative performance measures as defined in note 2.5, have been calculated based on earnings 
before non-underlying items which are set out in note 5. 
Strategic Report
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Financial Statements

156  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
12 Earnings per share continued
Diluted and underlying diluted earnings per share are calculated on the same basis as basic and underlying basic earnings per share, but where the weighted 
average share numbers have also been adjusted for the weighted average effects of potentially dilutive shares. Such potentially dilutive shares comprise share 
options and awards granted to employees, where the scheme to date performance is deemed to have been earned.
2024
2023
 
Note
million
million
Weighted average number of shares in issue for calculating basic earnings per share
2,334.8 
2,312.6 
Weighted average number of dilutive share options
59.2 
39.6 
Weighted average number of shares in issue for calculating diluted earnings per share
2,394.0 
2,352.2 
 
Note
£m
£m
Profit attributable to ordinary shareholders of the parent
137 
207 
Adjustment for non-underlying items net of tax
5
379 
326 
Profit attributable to ordinary shareholders of the parent – underlying
516 
533 
Earnings per share
Pence 
per share
Pence 
per share
Basic
5.9
9.0
Diluted
5.7
8.8
Underlying basic
22.1
23.0
Underlying diluted
21.6
22.7
13 Dividends
 
2024
2023
pence 
per share
pence 
per share
2024
 £m
2023
 £m
Amounts recognised as distributions to ordinary shareholders 
 
Final dividend for financial year ended 5 March 2022
—
9.9
—
229
Interim dividend for financial year ended 4 March 2023
—
3.9
—
90
Final dividend for financial year ended 4 March 2023
9.2
—
215
—
Interim dividend for financial year ended 2 March 2024
3.9
—
91
—
 
13.1
13.8
306
319
 Proposed final dividend at financial year-end
9.2
217
The proposed final dividend was approved by the Board on 24 April 2024 and is subject to shareholders’ approval at the Annual General Meeting. If approved, 
it will be paid on 12 July 2024 to shareholders on the register as at 7 June 2024. No amount for the proposed final dividend has been recognised at the balance 
sheet date. 
14 Property, plant and equipment
2024
2023
Land and
 buildings
Fixtures and 
equipment
Total
Land and 
buildings
Fixtures and
 equipment
Total
 
Note
£m
£m
£m
£m
£m
£m
Cost
 
 
At beginning of financial year
9,865
5,029
14,894
9,693
5,288
14,981
Acquisition 
2.6
1,021
—
1,021
—
—
—
Additions
– capitalised expenditure
273
360
633
249
284
533
– capitalised interest
1
—
1
1
—
1
Disposals
(1)
(470)
(471)
(71)
(540)
(611)
Transfer to assets held for sale
(5)
—
(5)
(7)
(3)
(10)
At end of financial year
11,154
4,919
16,073
9,865
5,029
14,894
Accumulated depreciation and impairment
 
 
 
At beginning of financial year
3,153
3,540
6,693
2,917
3,662
6,579
Depreciation expense 
186
353
539
184
382
566
Impairment loss 
17
8
21
29
110
39
149
Disposals
—
(470)
(470)
(56)
(540)
(596)
Transfer to assets held for sale
—
—
—
(2)
(3)
(5)
At end of financial year
3,347
3,444
6,791
 3,153
3,540
6,693
Net book value 
7,807
1,475
9,282
6,712
1,489
8,201
Capital work-in-progress included above
115
56
171
206
314
520
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J Sainsbury plc Annual Report and Financial Statements 2024  157
14 Property, plant and equipment continued
14.1 Interest capitalised
The capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is 6.8 per cent (2023: 6.1 per cent).
14.2 Security
 
2024
2023
Property, plant and equipment pledged as security for
Number of
 properties
Net book 
value
£bn
Number of
 properties
Net book 
value
£bn
Loan due 2031
48 
0.9 
48 
0.9 
Asset-backed pension contribution scheme
51 
1.2 
48 
1.1 
Other
6 
0.1 
6 
0.1 
 
105 
2.2 
102 
2.1 
15 Leases
15.1 Group as a lessee
a) 	Right-of-use assets
2024
2023
Land and 
buildings
Equipment
Total
Land and 
buildings
Equipment
Total
Net book value
Note
£m
£m
£m
£m
£m
£m
At beginning of financial year
5,032
313
5,345
5,266
294
5,560
New leases and modifications
334
104
438
283
115
398
Impairment loss
17
(6)
—
(6)
(142)
(1)
(143)
Depreciation expense
 
(353)
(97)
(450)
(375)
(95)
(470)
Derecognised as part of asset acquisition
2.6
(1,031)
—
(1,031)
—
—
—
At end of financial year
 
3,976
320
4,296
5,032
313
5,345
b)	Lease liabilities
 
Note
2024
£m
2023
£m
At beginning of financial year
6,489
6,621
New leases and modifications
414
382
Derecognised as part of asset acquisition
2.6
(1,042)
—
Interest expense
264
267
Payments
(771)
(781)
At end of financial year
5,354
6,489
c)	 Maturity analysis
 
2024
£m
2023
£m
Contractual undiscounted cash flows
 
 
Less than 1 year
703 
1,798 
1 to 2 years
660 
680 
2 to 3 years
619 
632 
3 to 4 years
562 
591 
4 to 5 years
534 
541 
Total less than 5 years
3,078 
4,242 
5 to 10 years
2,467 
2,473 
10 to 15 years
1,779 
1,981 
More than 15 years
2,770 
3,505 
Total undiscounted lease liability
10,094 
12,201 
Lease liability in the balance sheet
5,354 
6,489 
Analysed as:
 
 
Current
515 
1,533 
Non-current
4,839 
4,956 
d)	Undiscounted future rental payments not currently included within the reported lease liability
2024
2023
£m
£m
Extension options expected to not be exercised
4,498
4,781
Lease breaks expected to be exercised
400
425
Strategic Report
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Financial Statements

158  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
15 Leases continued
15.1 Group as a lessee continued
e)	 Sensitivity to changes in discount rate
2024
Increase/(decrease) in
lease liability 
£m
Increase in IBR of 3%
(160)
Decrease in IBR of 3%
170 
The reference rates for IBRs, which are determined quarterly, are based on UK overnight swap rates and the credit risk adjustments are based on the prices of 
instruments issued by the Group and quoted credit default swaps (CDS). 
f)	 Lease liabilities subject to specific terms (typically occurring on an annual or five-yearly basis)
2024
2023
£m
£m
Inflation-linked rentals
2,862
2,795
Subject to rent reviews
225
241
g)	Lease cash flows
2024
2023
£m
£m
Total cash outflow for leases (excludes sublet income)
(803)
(810)
15.2 Group as lessor
a)	Maturity analysis of lease receivables classified as finance leases 
2024
2023
£m
£m
Contractual undiscounted cash flows
Less than 1 year
10
10
1 to 5 years
21
27
More than 5 years
10
9
41
46
Lease receivable included in the balance sheet
Current
9
8
Non-current
24
27
33
35
b)	Maturity analysis of lease receivables classified as operating leases 
2024
2023
£m
£m
Less than 1 year
20
19
1 to 2 years
17
16
2 to 3 years
15
13
3 to 4 years
12
11
4 to 5 years
11
9
5 to 10 years
37
31
10 to 15 years
7
9
More than 15 years
11
12
Total undiscounted lease payments receivable
130
120
Strategic Report
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  159
16 Intangible assets
 
Note
Goodwill
Computer
 software
Acquired 
brands
Customer 
relationships
Total
 
£m
£m
£m
£m
£m
Cost
 
 
 
 
 
At 5 March 2023
391
1,105
229
32
1,757
Additions
—
178
—
—
178
Disposals
(7)
(48)
—
—
(55)
At 2 March 2024
384
1,235
229
32
1,880
Accumulated amortisation and impairment
At 5 March 2023
39
495
167
32
733
Amortisation expense 
—
171
18
—
189
Impairment loss 
17
38
162
—
—
200
Disposals 
—
(48)
—
—
(48)
At 2 March 2024
77
780
185
32
1,074
Net book value at 2 March 2024
307
455
44
—
806
Capital work-in-progress included above
—
44
—
—
44
Cost
At 6 March 2022
392
1,077
229
32
1,730
Additions
—
213
—
—
213
Disposals
(1)
(185)
—
—
(186)
At 4 March 2023
391
1,105
229
32
1,757
Accumulated amortisation and impairment
At 6 March 2022
26
521
147
30
724
Amortisation expense 
—
150
20
2
172
Impairment loss 
17
14
9
—
—
23
Disposals
(1)
(185)
—
—
(186)
At 4 March 2023
39
495
167
32
733
Net book value at 4 March 2023
352
610
62
—
1,024
Capital work-in-progress included above
—
48
—
—
48
Disposal of goodwill relates to the disposal of the mortgage book as described in note 5.3.
16.1 Analysis of goodwill balances by CGU
 
2024
2023
£m
£m
Jacksons Stores Limited
18
18
Home Retail Group
119
119
Sainsbury's Bank plc
—
45
Nectar
147
147
Bells Stores Limited
5
5
Other
18
18
 
307
352
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Financial Statements

160  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
17 Impairment of non-financial assets
17.1 Key assumptions in measuring VIU
The recoverable amount of Retail CGUs is measured at the higher of fair value less cost to dispose and the value-in-use of cash flows expected to be 
independently generated. For owned store-related assets, a vacant possession valuation is used as an approximation of fair value less cost to dispose.
The announcement of the restructuring of the Financial Services business as described further in note 5.1, which will result in a phased withdrawal from the 
core Banking business such that in future such services will be offered by dedicated financial services providers, represented an indicator of impairment, 
and as such full impairment review was undertaken, with a value-in-use calculation adopted as the measure of recoverability.
Cash flows and discount rate
Assumption
Retail Segment
Financial Services Segment
Cash flows
•	 Derived from the Board-approved cash flow projections for four 
years with an assumed growth rate of 2% beyond the four-year 
forecast period:
	– Owned stores: extrapolated into perpetuity 
	– Leased stores: taken to lease end 
	– Properties identified for closure: remaining period of trading
•	 Online grocery are allocated to the individual store CGUs which 
fulfil the online sales
•	 Two scenarios of cash flow projection which assume a sale of 
financial services products or a run down were prepared which 
represent either end of a reasonably possible range of 
outcomes that could occur and have been probability weighted 
in determining value in use
•	 Value in use has been derived from the Board-approved cash 
flow projections for four years, measured with reference to the 
assets’ remaining useful economic life that is being tested, 
adjusted for any estimated reduction in life arising from the 
phased withdrawal of the core banking business. For products 
not directly impacted by the phased withdrawal, the assumed 
growth rate of up to 2%, depending on product line, has been 
extrapolated beyond management’s four year forecast over the 
remaining useful life of the assets
Discount rate
•	 Post-tax rate representing the weighted average cost of capital 
(WACC), subsequently grossed up to a pre-tax rate of 8.9%.
Post-tax WACC calculated using the capital asset pricing model, 
the inputs of which include a 20-year average risk-free rate for 
the UK, a UK equity risk premium, levered debt premium and risk 
adjustment and an average beta for the Group
•	 Discount rate is applied consistently to all individual store CGUs 
and the Group of CGUs supported by Sainsbury’s or Argos stores
•	 Post-tax rate representing weighted average cost of capital 
(WACC), subsequently grossed up to a pre-tax rate of 14.7%
•	 Post-tax WACC calculated using a combination of adjusted 
market analysis and the actual cost of debt on Tier 2 
capital instruments
•	 Discount rate is applied consistently to all individual product 
CGUs and the collective CGUs which support the products
For store pipeline development sites, where there are plans to develop the store, the carrying value of the asset is compared with its VIU using a methodology 
consistent with the store CGU approach described above. Future cash flows include the estimated costs to completion. For sites where there is no plan to 
develop a store, the recoverable amount is based on its fair value less costs to dispose.
Climate change considerations
The Group’s scenario analysis performed as part of the Task Force on Climate-related Financial Disclosures (TCFD) report (page 30) identified that the most 
material climate-related risks were heat events, labour capacity, drought, flooding, regulation and changes in consumer preferences. Produce, Cotton, Coffee, 
Tea, Clothing, Meat, Fish and Poultry (MFP), and Fuel were the product categories most exposed to the climate-related risks.
The most material transitional climate risk was in Fuel. As such, the Group’s review of indicators of impairment in the current year incorporated the expected 
climate-related risks associated with fuel sales. The effect of reduced fuel sales on the Retail segment’s store CGUs did not represent an indicator of 
impairment and therefore the Group have concluded that the expected climate-related risks associated with fuel sales do not have a material impact on the 
Group’s impairment considerations at the reporting date. 
Other than fuel, changes in consumer preferences in MFP was identified as the risk most vulnerable to transitional risks and modelling this risk in isolation 
to 2030 in a 1.5°C scenario calculated a £350 million to £400 million loss in revenue. The Group has considered what the impact that this revenue loss 
(if unmitigated) could have on the carrying value of the Group’s store assets. In doing so, a corresponding reduction in margin and therefore cash flows 
have been modelled. Immaterial impairment risks were identified. As such, all other climate change-related risks do not have a material impact on the 
Group’s impairment considerations.
Strategic Report
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J Sainsbury plc Annual Report and Financial Statements 2024  161
17 Impairment of non-financial assets continued
17.2 Non-financial assets
a)	Impairment charges
2024
2023
Retail
Financial 
Services
Total
Retail
Financial 
Services
Total
Note
£m
£m
£m
£m
£m
£m
Balance sheet
Property, plant and equipment
20
9
29
149
—
149
Right-of-use assets
3
3
6
143
—
143
Intangible assets
—
200
200
23
—
23
Total impairment loss
23
212
235
315
—
315
Income statement
Comprising
Restructuring programmes
5.1
4
212
216
34
—
34
Non-restructuring programmes
5.3
19
—
19
281
—
281
Total impairment loss
23
212
235
315
—
315
b)	Sensitivity
For all impairments recognised, management is satisfied that there are no reasonably possible changes in assumptions that would lead to the recognition of 
a materially different impairment charge. 
17.3 Goodwill
a)	Impairment charges
The following impairment charges are included within the intangible assets impairment presented in note 17.2.
 
2024
2023
 
Footnote
£m
£m
Sainsbury's Bank plc
a)
38
—
Jacksons Stores Limited
b)
—
10
Bells Stores Limited
b)
—
4
38
14
a)	 As described in note 5.3, following the sale of the Group’s mortgage portfolio, goodwill of £7 million in respect of Sainsbury’s Bank plc was derecognised on disposal. Following the 
restructuring of the financial services business announced on 18 January 2024 and described in further detail in note 5.1, the remaining balance of goodwill of Sainsbury’s Bank plc has 
been fully impaired.
b)	 Related to the store CGUs to which Jacksons Stores Limited and Bells Stores Limited goodwill amounts are allocated to. 
The recoverable amount of CGUs to which the respective goodwill has been allocated are based on the same key assumptions as noted in 17.1.
b) Sensitivities
Sensitivity analysis on the impairment tests for each group of CGUs to which goodwill has been allocated has been performed. The valuations indicate 
sufficient headroom such that a reasonably possible change to key assumptions would not result in any impairment of goodwill that differs to that 
recognised. Management is satisfied that there are no reasonable possible changes to assumptions that would lead to further impairments.
Headroom
 
Discount rate
Cash flows
Headroom
-2%
+2%
-10%
+10%
 
Footnote
£m
£m
£m
£m
£m
Home Retail Group
a), b)
1,920
3,066
1,291
1,653
2,188
Sainsbury’s Bank plc 
a), c)
—
n/a
n/a
n/a
n/a
Nectar UK
a)
1,656
2,412
1,241
1,473
1,838
Jacksons Stores Limited 
d)
92
116
77
80
104
Bells Stores Limited
d)
38
44
34
33
43
Other
45
74
29
36
54
a)	 Cash flows derived from Board-approved projections for four years and then extrapolated into perpetuity with an assumed growth rate of up to 2.0%.
b)	 Allocated to the collective Argos store and non-store CGU.
c)	
Sainsbury’s Bank plc goodwill is allocated to the Financial Services collective CGUs and has been fully impaired as described in note 5.1. There are no reasonably possible changes in key 
assumptions that would cause the goodwill to not be impaired.
d)	 Goodwill balances are allocated to individual store CGUs to which they relate.
Strategic Report
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Financial Statements

162  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
18 Financial assets at fair value through other comprehensive income 
2024
2023
Non-current
£m
Current
£m
Total
£m
Non-current
£m
Current
£m
Total
£m
Equity: Other Financial Assets
17
—
17
17
366
383
Debt: Financial Services-related investment securities
744
17
761
498
128
626
 
761
17
778
515
494
1,009
2023: Other financial assets predominantly comprised the Group’s beneficial interest in a commercial property investment pool which was derecognised 
during 2024 as described in note 2.6. 
19 Inventories
 
 2024
2023
 
£m
£m
Gross finished goods
2,039
2,026
Inventory provision
(112)
(127)
1,927
1,899
20 Trade and other receivables
20.1 Trade and other receivables
2024
2023
Non-current
Current
Total
Non-current
Current
Total
£m
£m
£m
£m
£m
£m
Trade receivables
—
126
126
—
141
141
Other receivables
65
253
318
28
308
336
Accrued income
—
13
13
—
4
4
Prepayments
43
190
233
28
174
202
108
582
690
56
627
683
Trade and other receivables include £95 million (2023: £88 million) relating to supplier arrangements where there is no right of offset. In addition, current 
other receivables include £160 million (2023: £142 million) of bank funds in the course of settlement.
20.2 Allowance for expected credit losses
The Group’s exposure to credit risk arising from its retail operations is minimal owing to the customer base being large and unrelated with the overwhelming 
majority of transactions settled through cash or secure electronic means. New parties wishing to obtain credit terms with the Group are credit checked prior 
to invoices being raised and credit limits are determined on an individual basis.
 2024
Not 
past due
0 to 6 months
 past due
6 to 12 months
 past due
Over 1 year 
past due
Total
£m
£m
£m
£m
£m
Gross amounts
Trade receivables
114
13
1
4
132
Other receivables
319
4
1
11
335
Gross Carrying Amount – Trade and other receivables
433
17
2
15
467
Allowance for expected credit losses
(4)
(4)
(1)
(14)
(23)
Net carrying amount 
429
13
1
1
444
 2023
Not 
past due
0 to 6 months
 past due
6 to 12 months
 past due
Over 1 year 
past due
Total
£m
£m
£m
£m
£m
Gross amounts
Trade receivables
112
25
7
12
156
Other receivables
336
6
1
8
351
Gross Carrying Amount – Trade and other receivables
448
31
8
20
507
Allowance for expected credit losses
(7)
(2)
(5)
(16)
(30)
Net carrying amount 
441
29
3
4
477
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J Sainsbury plc Annual Report and Financial Statements 2024  163
21 Amounts due from Financial Services customers and other banks
2024
2023
Non-current
Current
Total
Non-current
Current
Total
Note
£m
£m
£m
£m
£m
£m
Loans and advances to customers
a)
1,525
3,227
4,752
1,959
3,573
5,532
Loans and advances to banks
—
—
—
—
100
100
Allowance for expected credit losses
28.2
(58)
(177)
(235)
(51)
(189)
(240)
1,467
3,050
4,517
1,908
3,484
5,392
a)	 Includes impact of non-underlying effective interest rate adjustment of £21 million as set out in note 5.1 (2023: £nil). In addition, as described in note 5.3, during the year, the Group 
disposed of its mortgage portfolio.
Eligible personal loans with applicable haircuts are used as collateral for the bilateral personal loans securitisation facility and the Bank of England’s Term 
Funding Scheme with additional incentives for Small and Medium-sized enterprises (TFSME) and Indexed Long-term Repo (ILTR) facilities.
As at 2 March 2024, £1,436 million (2023: £494 million) of personal loans assets, including £547 million (2023: £80 million) of loans indirectly encumbered via 
the Bank’s securitisation facilities, and £nil (2023: £459 million) of mortgage assets were pledged to the Bank of England facilitating funding of £600 million 
(2023: £660 million) from TFSME and £5 million (2023: £nil) from the ILTR.
A further £nil (2023: £137 million) of Personal Loans assets were pledged indirectly via the Bank’s securitisation facilities generating £nil (2023: £100 million) 
of funding via sale and repurchase agreements and collateral swaps.
The Bank has also pledged a covered bond of £25 million (2023: £nil) to the Bank of England facilitating £5 million of ILTR funding.
22 Assets held for sale
 
2024
2023
 
£m
£m
Opening balance
8
8
Acquisitions
63
—
Classified as held for sale in the year
15
5
No longer classified as held for sale
(10)
—
Sold in the year
(66)
(5)
Closing balance
10
8
The fair value of assets held for sale is based on independent market valuations of the assets. 
Acquisitions relate to the asset acquisition described in note 2.6, of which four properties were sold to a third party during the financial year for £61 million. 
The fifth and final property acquired as part of the asset acquisition was sold to a third party subsequent to the balance sheet date.
Amounts no longer classified as held for sale relate to circumstances where it is no longer considered highly probable that a sale will occur within the next 
12 months. Amounts reclassified are adjusted for any depreciation or amortisation that would have been recognised had the asset not been classified as 
held for sale.
23 Trade and other payables
2024
2023
Non-current
Current
Total
Non-current
Current
Total
£m
£m
£m
£m
£m
£m
Trade payables
2
3,764
3,766
—
3,361
3,361
Other payables
2
538
540
—
596
596
Accruals
6
456
462
—
538
538
Deferred income
1
333
334
—
342
342
11
5,091
5,102
—
4,837
4,837
 
2024
2023
Analysis of deferred income
£m
£m
Opening balance
342
352
Revenue deferred
289
340
Revenue recognised which has previously been deferred
(297)
(350)
Closing balance
334
342
£303 million (2023: £315 million) of deferred income relates to deferred Nectar points.
Strategic Report
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Financial Statements

164  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
23 Trade and other payables continued
23.1 Foreign currency risk
The Group has net euro-denominated trade payables of £30 million (2023: £35 million) and US dollar-denominated trade payables of £109 million 
(2023: £86 million).
23.2 Supplier financing arrangements
The Group has supply chain finance programmes in place. The programmes act as an alternative source of financing for the suppliers who have the option to 
trade their invoices with funding providers in order to receive cash earlier than the invoice due dates. The payment terms offered to suppliers who are party 
to the supply chain finance programmes are within standard supplier payment terms and agreed directly with the supplier.
Balances outstanding under the supplier financing arrangements are classified as trade payables, and cash flows are included in operating cash flows, since 
the financing arrangements are agreed between the supplier, the funding providers and the third-party platform providers. The Group does not provide 
additional credit enhancement nor obtain any working capital benefit from the arrangements.
Included in trade payables are amounts of £547 million (2023: £607 million) drawn by suppliers who are party to the supply chain finance programmes.
23.3 Sensitivity of deferred income in respect of Nectar points to breakage estimates 
Key assumption
Sensitivity
(Increase)/decrease in
deferred points liability
£m
Breakage estimate
1%
53 
-1%
(52)
24 Amounts due to Financial Services customers and banks 
2024
2023
Non-current
Current
Total
Non-current
Current
Total
£m
£m
£m
£m
£m
£m
Customer accounts
183
3,981
4,164
374
4,360
4,734
Other deposits
23
1,534
1,557
692
520
1,212
206
5,515
5,721
1,066
4,880
5,946
With the exception of fixed rate bonds, amounts due to Financial Services customers are generally repayable on demand and accrue interest at retail 
deposit rates. 
Other deposits of £1,557 million (2023: £1,212 million) relate to deposits from wholesale counterparties, including the Bank of England’s TFSME and ILTR 
schemes, and £518 million (2023: £191 million) of deposits obtained via deposit aggregators where the ultimate depositors are retail customers. 
Following the strategic decision to move to offer Financial Services products through dedicated Financial Services providers and the phased withdrawal from 
the core banking business, amounts due in respect of the Bank of England’s Term Funding Scheme Small and Medium-sized enterprises (TFSME) have been 
classified as current liabilities. This is in line with the terms and conditions of the Term Funding Scheme with additional incentives for SMEs, although the 
latest repayment dates remain as July 2025 of £40 million, August 2025 of £385 million, and September 2025 of £175 million. It should also be noted that 
subsequent to the balance sheet date, prior to the date of approval of the financial statements, the Group has repaid £100 million of the outstanding TFSME 
liability as part of its normal liquidity management activity.
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J Sainsbury plc Annual Report and Financial Statements 2024  165
25 Provisions
 
Property 
provisions
Insurance 
provisions
Sainsbury’s 
structural 
integration 
provisions
Financial 
Services-
related 
provisions
Other 
provisions
Total
a)
b)
c)
d)
 
£m
£m
£m
£m
£m
£m
At 5 March 2023
114
59
58
28
13
272
Additional provisions
77
22
42
18
—
159
Unused amounts released
(19)
—
(8)
(6)
(2)
(35)
Utilisation of provision
(52)
(22)
(42)
(1)
—
(117)
Amortisation of discount
—
—
1
—
—
1
At 2 March 2024
120
59
51
39
11
280
Current
45
13
28
22
5
113
Non-current
75
46
23
17
6
167
At 6 March 2022
140
62
29
26
14
271
Additional provisions
26
30
64
5
—
125
Unused amounts released
(33)
(4)
(3)
(1)
(1)
(42)
Utilisation of provision
(19)
(29)
(32)
(2)
—
(82)
At 4 March 2023
114
59
58
28
13
272
Current
55
19
30
28
8
140
Non-current
59
40
28
—
5
132
a)	 Property provisions comprise onerous property contract provisions for the least net cost of exiting from the contract and provisions for dilapidations.
b)	 Insurance provisions comprise liabilities in respect of outstanding insurance claims in relation to public liability, employer’s liability and third party motor.
c)	
Sainsbury’s structural integration restructuring provisions comprise mainly redundancies as described in note 5.1.
d)	 Financial Services-related provisions comprise mainly Financial Services loan commitment provisions reflecting expected credit losses modelled in relation to loan commitments not yet 
recognised on the balance sheet, including on credit cards and Argos store cards. Additional provisions in the current year relate to onerous contracts arising from the changes to the 
Financial Services model restructuring programme as described in note 5.1.
25.1 Climate change considerations
The Group takes into account the potential impact of climate change on its legal and constructive obligations, such as regulations related to carbon 
emissions, environmental liabilities and natural disasters. The Group has reviewed its provisions and concluded that no adjustments need to be made 
for climate change risks, nor that any new provisions need to be recognised for climate-related matters. 
25.2 Sensitivity of provisions to changes in expected cash outflows
 
Increase/(decrease) in provisions recognised
 
Property 
provisions
Insurance 
provisions
Sainsbury’s
 structural
 integration
 provisions 
Other 
provisions
Total
 
£m
£m
£m
£m
£m
Cash outflow
10%
12
6
5
1
24
Cash outflow
(10)%
(12)
(6)
(5)
(1)
(24)
26 Called up share capital
 
2024
2023
2024
2023
 
million
million
£m
£m
Called up share capital
 
 
 
 
Allotted and fully paid ordinary shares 28 4/7p
2,371
2,352
678
672
Movements relate to allotments of 18,274,875 shares (2023: 15,987,425 shares) in respect of share option schemes.
Strategic Report
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Financial Statements

166  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
27 Capital redemption and other reserves
 
Currency 
translation 
reserve
Investment in 
own shares 
Financial 
asset reserve
Cash flow 
hedge
Total other 
reserves
Capital 
redemption 
reserve
 
£m
£m
£m
£m
£m
£m
At 5 March 2023
3
(90)
293
68
274
680
Currency translation differences
(3)
—
—
—
(3)
—
Financial assets at fair value through other comprehensive income
—
—
1
—
1
—
Transferred to carrying value of inventory
—
—
—
32
32
—
Cash flow hedges effective portion of fair value movements
—
—
—
(149)
(149)
—
Items reclassified from cash flow hedge reserve
—
—
—
4
4
—
Purchase of own shares
—
(18)
—
—
(18)
—
Allotted in respect of share schemes
—
35
—
—
35
—
Deferred tax
—
—
80
17
97
—
Current tax
—
—
2
—
2
—
At 2 March 2024
—
(73)
376
(28)
275
680
 
Currency 
translation 
reserve
Investment in 
own shares 
Financial asset 
reserve
Cash flow 
hedge
Total other 
reserves
Capital 
redemption 
reserve
 
£m
£m
£m
£m
£m
£m
At 6 March 2022
(1)
(68)
293
117
341
680
Currency translation differences
4
—
—
—
4
—
Financial assets at fair value through other comprehensive income 
—
—
2
—
2
—
Transferred to carrying value of inventory
—
—
—
(139)
(139)
—
Items reclassified from financial assets at fair value through other 
comprehensive income reserve
—
—
(1)
—
(1)
—
Cash flow hedges effective portion of fair value movements
—
—
—
93
93
—
Items reclassified from cash flow hedge reserve
—
—
(1)
(17)
(18)
—
Purchase of own shares
—
(45)
—
—
(45)
—
Allotted in respect of share schemes
—
23
—
—
23
—
Deferred tax
—
—
—
14
14
—
At 4 March 2023
3
(90)
293
68
274
680
27.1 Currency translation reserve
The currency translation reserve accumulates foreign exchange differences arising on the translation of net assets in foreign operations which are recognised 
in Other Comprehensive Income. The cumulative amount is reclassified to retained earnings when the related investment is disposed.
27.2 Investment in own shares 
Represents the cost of shares in the Company held by the Employee Share Ownership Trust (ESOT) net of directly attributable costs for the purchase of issued, 
or issuance of new shares. This cost is transferred to retained earnings when shares are issued by the ESOT to employees to satisfy employee share awards.
Shares held by the ESOT
2024
2023
 
Market Value Nominal Value
Number 
Market Value
Nominal Value
Number 
 
£m
£m
m
£m
£m
m
Investment in own shares
75
8.6
30.1
99
10.7
37.3
Maximum number of shares held during the period
105
11.8
41.3
83
10.9
38.0
During the period, the ESOT acquired 6.8 million of the Company’s ordinary shares via market purchase for cash consideration of £18 million (2023: 20.0 million 
shares via market purchase for cash of £45 million). The disposal of 14.0 million (2023: 9.3 million) ordinary shares was by way of distribution to settle 
outstanding employee share awards. The ESOT has waived its right to receive dividends and has agreed to abstain from exercising its right to vote.
27.3 Financial asset reserve 
Represents the fair value gains and losses on financial assets at fair value through other comprehensive income. 
As described in note 18, the Group derecognised its financial asset relating to its beneficial interest in a commercial property investment pool during the 
financial year. On derecognition, the cumulative gain or loss previously recognised in the financial asset reserve did not result in a profit or loss in the income 
statement, as gains or losses on equity instruments are never recycled to the income statement.
27.4 Cash flow hedge reserve
Represents the effective portion of gains or losses on derivatives designated and that qualify as cash flow hedges. Amounts are transferred to the balance 
sheet and included within the initial cost of the asset which is being hedged, or to the income statement, as appropriate.
27.5 Capital redemption reserve
The balance arose through a return of share capital resulting in the return and cancellation of shares, by way of a B share scheme, approved at an 
Extraordinary General Meeting on 12 July 2004. The final redemption date for B shares was 18 July 2007 with all transactions completed in 2007.
Strategic Report
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  167
28 Financial risk management
The principal financial risks faced by the Group relate to liquidity risk, credit risk, market risk (foreign currency risk, interest rate risk and commodity risk) 
and capital risk. 
Financial risk management is managed by a central treasury department in accordance with policies and guidelines which are reviewed and approved by 
the Board of Directors. The risk management policies are designed to minimise potential adverse effects on the Group’s financial performance by identifying 
financial exposures and setting appropriate risk limits and controls. The risk management policies also ensure sufficient liquidity is available to the Group 
to meet foreseeable financial obligations and that cash assets are invested safely. 
Financial risk management with respect to Financial Services is separately managed within the Financial Services’ own governance structure whereby a 
holistic, end-to-end view of risk is adopted which ensures that the key risks arising from Financial Services activities are effectively identified, assessed and 
controlled. The objective is to support the strategy of Financial Services by assessing and managing risks in an appropriate manner relative to the size and 
complexity of the business. In respect of the decision for financial services products to be offered in the future by dedicated financial services providers 
through a distributed model with a phased withdrawal from the core Banking business over time, financial risks were considered and assessed and this 
will continue to be monitored and assessed as this restructuring progresses.
28.1 Liquidity risk
Liquidity risk is the risk that the Group may be unable to meet its financial obligations as they fall due.
The principal operational cash flow of the Group is largely stable and predictable reflecting the low business risk profile of the food retail sector and the cyclical profile 
of the non-food retail sector. Cash flow forecasts are produced to assist management in identifying future liquidity requirements. The Group’s liquidity policy sets a 
minimum funding headroom of £500 million in excess of forecast funding requirements over a rolling 12-month time horizon. The Group manages its liquidity risk by 
maintaining a core of long-dated borrowings, pre-funding future cash flow commitments and holding contingent committed credit facilities.
Within Financial Services, Sainsbury’s Bank undertakes an annual Internal Liquidity Adequacy Assessment Process (ILAAP) which enables it to:
•	 Identify and assess its most relevant liquidity risk drivers which include its Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) as well as cash flow 
and funding ratios
•	 Quantify its liquidity needs under various stress scenarios
•	 Put in place appropriate limits and controls to mitigate liquidity risks
Through its Asset-Liability Committee (ALCO), the Bank’s asset encumbrance ratios and risk indicators for wholesale funding are also regularly monitored. 
The main sources of encumbrance in the Group relate to margin requirements for derivative transactions and collateral relating to secured funding 
transactions. Cash collateral is advanced and received as variation margin on derivatives transactions, whilst eligible treasury assets are pledged as collateral 
for initial margin requirements on derivatives which are centrally cleared. Information regarding loans used as collateral is set out in note 21 with 
encumbered assets set out below.
Encumbered assets
 2024
 2023
£m
£m
Loans and advances to customers
1,444
1,116
Debt securities
25
—
Cash and balances with central banks
14
15
Other assets
76
64
The Group has a £1,575 million unsecured committed facility which consists of a £1,000 million Revolving Credit Facility as set out in note 33.4 and a £575 million 
Term Loan maturing in March 2026 which is fully drawn.
As detailed in note 23.2, some suppliers have access to supply chain finance facilities, which allows these suppliers to benefit from the Group’s credit profile. 
The total size of the facility is £1,053 million (2023: £1,054 million) across a number of banks and platforms with an amount utilised of £547 million (2023: £607 million). 
The level of utilisation is dependent on the individual supplier requirements and varies significantly over time.
Maturities below are based on the contractual undiscounted cash flows or an estimate of cash flows in respect of floating interest rate liabilities.
Maturity of financial liabilities – undiscounted
2024
Less than 
one year
One to 
two years
Two to
 five years
More than 
five years
Total
Footnote
£m
£m
£m
£m
£m
Non-derivative financial liabilities
a)
 
 
 
 
Secured loan: Loan due 2031
b)
(84)
(88)
(293)
(178)
(643)
Trade and other payables
(4,758)
(5)
(5)
—
(4,768)
Amounts due to Financial Services customers and banks
c)
(5,798)
(138)
(100)
—
(6,036)
Tier 2 subordinated debt
(12)
(12)
(152)
—
(176)
Term loan
(37)
(35)
(581)
—
(653)
Derivative contracts – net settled 
 
 
 
 
 
Commodity contracts 
1
—
—
—
1
Interest rate swaps in hedging relationships
b), d)
—
—
(7)
(49)
(56)
Derivative contracts – gross settled
 
 
 
 
 
Foreign exchange forwards – outflow 
e)
(1,194)
(190)
—
—
(1,384)
Foreign exchange forwards – inflow 
e)
1,168
188
—
—
1,356
Commodity contracts – outflow
(26)
(22)
(53)
(138)
(239)
Commodity contracts – inflow
27
26
64
129
246
Strategic Report
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168  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
28 Financial risk management continued
28.1 Liquidity risk continued
Maturity of financial liabilities – undiscounted continued
2023
Less than 
one year
One to 
two years
Two to
 five years
More than 
five years
Total
Footnote
£m
£m
£m
£m
£m
Non-derivative financial liabilities
a)
 
 
 
 
Secured loan: Loan due 2031
b)
(79)
(82)
(272)
(289)
(722)
Trade and other payables
(4,495)
—
—
—
(4,495)
Amounts due to Financial Services customers and banks
c)
(5,101)
(359)
(766)
—
(6,226)
Tier 2 subordinated debt
f)
(12)
(12)
(38)
(126)
(188)
Derivative contracts – net settled 
 
 
 
 
Commodity contracts 
(1)
1
—
—
—
Interest rate swaps in hedging relationships
b), d)
28
13
4
4
49
Other interest rate swaps – Sainsbury's Bank
4
—
—
—
4
Derivative contracts – gross settled
 
 
 
 
Foreign exchange forwards – outflow
e)
(1,560)
(222)
—
—
(1,782)
Foreign exchange forwards – inflow
e)
1,602
220
—
—
1,822
Commodity contracts – outflow
(16)
(28)
(59)
(164)
(267)
Commodity contracts – inflow
44
58
116
200
418
a)	 Maturity of non-derivative financial liabilities in respect of lease liabilities is set out in note 15.1 c).
b)	 Cash flows relating to debt and swaps linked to inflation rates have been calculated using an RPI of 5.0 per cent for the year ended 2 March 2024, 4.9 per cent for the year ending 1 March 2025 
and 3.9 per cent for future years (2023: RPI of 5.0 per cent for the year ending 4 March 2023 and 5.0 per cent for year 2024 and beyond).
c)	
Cash flows relating to amounts due to Sainsbury’s Bank customers and banks are calculated using contractual terms and interest rates for fixed rate instruments. Where balances are 
contractually repayable on demand, behavioural assumptions are applied to estimate the interest payable on those balances. These are shown as due within one year. 
d)	 The swap rate that matches the remaining term of the interest rate swap as at the period end date has been used to calculate the floating rate cash flows over the life of the interest rate 
swaps shown above.
e)	
Cash flows in foreign currencies have been translated using year-end spot rates.
f)	
The 2023 table has been restated to include Tier 2 subordinated debt, which was incorrectly excluded from this disclosure table in the prior year.
28.2 Credit risk
a)	Retail credit risk management 
Counterparty credit risk is the risk of a financial loss arising from counterparty default or non-performance in respect of the Group’s holdings of cash and 
cash equivalents, derivative financial assets, deposits with banks, investments in marketable securities, trade and other receivables and loans and advances 
to customers.
b)	Financial Services retail credit risk management
Within Financial Services, retail credit risk is the possibility of losses arising from a retail customer failing to meet their agreed repayment terms as they fall 
due. The Financial Services division utilises automated scorecards to assess the creditworthiness and affordability criteria of new applicants and ongoing 
behavioural characteristics of existing customers. The outcome from all scorecard models is monitored utilising a set of credit quality metrics to ensure 
actual performance is in line with agreed expectations. Additional expert underwriting of credit applications is undertaken by a specialist operational team 
where further consideration is appropriate. 
The Retail Credit Risk Committee of Sainsbury’s Bank provides portfolio oversight control over credit strategy to maintain lending in line with the Bank 
Board’s approved risk appetite, with additional oversight and control provided by the Bank’s Executive and Board Risk Committees. Internal Audit provide 
additional assurance by undertaking regular reviews on the adequacy of credit risk policies and procedures. 
c)	 Wholesale and derivative credit risk management
The Group (excluding Financial Services) sets counterparty limits for each of its banking and investment counterparties based on their credit ratings and 
credit default swap pricing. The minimum long-term credit rating accepted by the Group is BBB – (Standard & Poor’s and Fitch) or Baa3 (Moody’s) or, in the 
case of pound sterling liquidity funds, AAA or Aaa/MR1+ from Moody’s. In the event of a split credit rating, the lower rating applies.
Analysis of Group (including Financial Services) credit exposure 
2024
2023
Counterparty
Footnote
Long-term rating
£m
£m
Cash and cash equivalents
Financial institutions – Money market funds
a)
AAA/Aaa
263
140
Financial institutions – Money market deposits
AAA/Aaa
—
50
Financial institutions – Money market deposits
AA+/Aa1 to A/A2
232
215
Deposits at central banks
AA+/Aa1
886
345
Derivative financial assets
 
 
 
Interest rate swaps
AA+/Aa1 to A/A2 
62
99
Inflation rate swaps
AA+/Aa1 to A/A2 
—
2
Foreign exchange forward contracts
AA+/Aa1 to A/A2
4
49
Commodity forward contracts
AA+/Aa1 to A/A2
1
7
a)	 Excludes bank balances, store cash, cash in transit and cash at ATMs.
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J Sainsbury plc Annual Report and Financial Statements 2024  169
28 Financial risk management continued
28.2 Credit risk continued
Analysis of Group (including Financial Services) credit exposure continued
The Bank’s treasury portfolio is held primarily for liquidity management purposes and in the case of derivatives, for the purpose of managing market risk. 
Limits are established for all counterparty and asset class exposures based on their respective credit quality and market liquidity. Consideration is also given 
to geographical region and the strength of relevant sovereign credit ratings. Derivatives are subject to the same credit risk control procedures as are applied 
to other wholesale market instruments and the credit risk arising from mark to market derivative valuations is mitigated by daily margin calls, posting cash 
collateral to cover exposures.
d)	Maximum exposure to credit risk
 
2024
2023
Credit exposure
£m
£m
On balance sheet items
 
Loans and advances to customers and other banks
4,517
5,392
Cash and balances with central banks
1,987
1,319
Derivative financial instruments (excludes level 3 instruments)
67
156
Investment securities
761
626
Other assets 
444
477
Off balance sheet items
 
 
Loan commitments
6
11
7,782
7,981
The exposures are shown gross, before the effect of mitigation through the use of collateral agreements.
The commitments to lend do not include undrawn limits on credit cards and store cards of £7,691 million (2023: £8,674 million). These are not considered 
contractual commitments but, because in practice Financial Services does not expect to withdraw these credit limits from customers, they are within the 
scope of impairment provisioning.
e)	 Impairment of financial assets
The ECL 3 stage model is applied as follows:
•	 Stage 1 – Impairment allowance is calculated on financial assets that have not significantly increased in credit risk since origination, nor are credit 
impaired, using the probability that a borrower will default within 12 months from the balance sheet date. Interest income is recognised on the gross 
carrying value of the financial asset
•	 Stage 2 – Where a financial asset exhibits a significant increase in credit risk (SICR) but is not yet considered to be credit impaired, the probability of 
default considered in the impairment allowance is based upon the lifetime probability of the borrower defaulting. Interest income continues to be 
recognised on the gross carrying value of the financial asset
•	 Stage 3 – Assets considered to be credit impaired resulting from one or more events that have occurred that has resulted in a detrimental impact on the 
estimated future cash flows of the asset. Stage 3 assets will continue to recognise lifetime expected impairment losses (with a 100% probability of default) 
and interest income will be recognised on the net carrying amount (i.e. gross amount less impairment)
Significant increases in credit risk
The Group determines whether there has been a significant increase in credit risk by reference to quantitative thresholds, qualitative indicators and the 
backstop presumption that credit risk has significantly increased if contractual payments are more than 30 days past due.
Quantitative thresholds have been determined that when the lifetime PD of an instrument as at the reporting date has increased to greater than a specified 
multiple of the origination lifetime PD, a significant increase in credit risk is deemed to have occurred.
Qualitative tests are based around the Group’s credit origination policy rules for Financial Services customers. These rules are in place at account origination 
in order to decline accounts that may demonstrate risk factors outside of risk appetite that are not yet reflected in PD measures. At the reporting date, if an 
account satisfies any policy decline rules that it had not at the point of origination, it will be considered to have significantly increased in credit risk.
There is no probationary period applied in respect of accounts that cure from stage 2 to stage 1. Transfer criteria have been subject to extensive analysis to 
ensure that they appropriately reflect the flow of accounts from origination to default so as to maximise the number of accounts that flow through the stages 
and minimise accounts that jump from stage 1 to stage 3, or that fail to enter stage 3 from stage 2.
The Group has applied the low credit risk exemption in respect of its high quality treasury portfolio held for liquidity purposes. This exemption permits low 
credit risk debt securities (i.e. those considered investment grade) to remain in Stage 1 without an assessment of significant increase in credit risk.
Definition of default
The Group’s definition of default is used in determining those accounts classified as stage 3 (i.e. credit impaired). The Group has chosen not to rebut the 
backstop presumption prescribed by IFRS 9 that where an account is 90 days or more past its due date then default has occurred. 
The Group has also defined a number of unlikely-to-pay criteria that result in an account being deemed to have defaulted. These include:
•	 Where operational collections activities have been exhausted on accounts that are less than 90 days past due and the account is subject to 
recoveries processes
•	 If any forbearance has been granted on the account (see forbearance definition below)
•	 Where the customer is subject to insolvency proceedings
•	 Where the customer is deceased
Where an account no longer meets any of the default criteria, such as by bringing payments back up to date, the Group will continue to consider the account as 
being in default for the probation period (24 months for Loans and Cards, and 12 months for Storecards) from the date when it last met the definition of default.
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170  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
28 Financial risk management continued
28.2 Credit risk continued
e)	 Impairment of financial assets continued
Write-off
Loans and advances to customers are written off (either partially or in full) when there is no realistic prospect of recovery. This is generally the case when 
the Group determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject 
to write-off. 
Subsequent recoveries of amounts previously written off result in impairment gains recorded in the income statement.
Modified financial assets
When the contractual cash flows of a financial asset have been renegotiated or modified and the financial asset was not derecognised, its gross carrying 
amount is recalculated as the present value of the modified contractual cash flows, discounted at the original effective interest rate with a gain or loss 
recognised in the income statement.
Loans and advances to customers per ECL stage
2024
2023
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
£m
£m
£m
£m
£m
£m
£m
£m
Unsecured lending
4,154
398
207
4,759
4,312
479
203
4,994
Allowance for expected credit losses
 
 
 
 
Expected credit loss on gross balance
(46)
(50)
(139)
(235)
(45)
(51)
(144)
(240)
Undrawn commitments impairment
(10)
(4)
(1)
(15)
(12)
(7)
—
(19)
(56)
(54)
(140)
(250)
(57)
(58)
(144)
(259)
Coverage
1.3%
13.6%
67.6%
5.3%
1.3%
12.1%
70.9%
5.2%
Unsecured lending represents Sainsbury’s Bank credit cards and personal loan lending in addition to Argos storecards and monthly payment plan. The Group 
has no secured lending (2023: secured lending comprised the Group’s mortgage portfolio which was sold during the year as described in note 28.2 h).
Loans and advances to customers per ECL stage – split by exposure and ECL movement
2024
2023
 
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
£m
£m
£m
£m
£m
£m
£m
£m
Gross exposure
 
 
 
 
 
 
 
 
Provided
—
—
207
207
—
—
209
209
Past due but not impaired
8
47
—
55
10
50
—
60
Neither past due nor impaired
4,146
351
—
4,497
4,835
471
—
5,306
 
4,154
398
207
4,759
4,845
521
209
5,575
Allowance for expected credit loss
 
 
 
 
 
 
 
 
Opening loss allowance
(57)
(58)
(144)
(259)
(46)
(54)
(122)
(222)
Transfers between stages 
(12)
24
(12)
—
(11)
22
(11)
—
Additional allowance less amounts 
recovered
(4)
1
(2)
(5)
(8)
(2)
8
(2)
Write-offs
1
6
69
76
—
4
35
39
Changes in credit risk during the year
16
(27)
(51)
(62)
8
(28)
(54)
(74)
Closing allowance before undrawn 
commitments impairment
(56)
(54)
(140)
(250)
(57)
(58)
(144)
(259)
Undrawn commitments impairment
10
4
1
15
12
7
—
19
Closing loss allowance
(46)
(50)
(139)
(235)
(45)
(51)
(144)
(240)
Net exposure
4,108
348
68
4,524
4,800
470 
65 
5,355
Hedging fair value adjustment
(7)
(43)
Loans and advances to other banks
—
100
4,517
5,392
Credit quality per class of loans and advances
12 month probability of default
Probability %
High quality
<=3.02%
Satisfactory quality
>=3.03%–11.10%
Low quality
>=11.11%
Credit impaired
100%
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J Sainsbury plc Annual Report and Financial Statements 2024  171
28 Financial risk management continued
28.2 Credit risk continued
e)	 Impairment of financial assets continued
Credit quality – unsecured lending 
2024
2023
 
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
£m
£m
£m
£m
£m
£m
£m
£m
High quality
3,387
81
—
3,468
3,593
125
—
3,718
Satisfactory quality
704
186
—
890
641
215
—
856
Low quality 
63
131
—
194
78
139
—
217
Credit impaired
—
—
207
207
—
—
203
203
Total 
4,154
398
207
4,759
4,312
479
203
4,994
2024: The Group has no secured lending (2023: secured lending comprised the Group’s mortgage portfolio which was sold during the year as described in 
note 28.2 h).
f)	 Sensitivity of ECL to changes in macro-economic scenarios
The ECL models utilise four scenarios including a ‘base case’ scenario considered to be the most likely outcome together with an upside, downside scenario 
and severe downside. The base case has been assigned a probability weighting of 40% with the upside, downside and severe downside scenarios weighted 
30%, 25% and, 5% respectively (2023: base scenario 40%; upside, downside and severe downside scenarios weighted 30%, 25%, and 5% respectively).
Key macro-economic assumptions (five-year forecast averages)
 
2024
 
Base
Upside
Downside
Severe 
downside
 
%
%
%
%
Unemployment rate
4.4
4.0
5.5
7.2
Consumer price growth
2.0
1.1
3.1
4.3
GDP
1.2
1.8
0.3
(0.6)
Mortgage debt as a percentage of household income
91.4
88.4
95.5
100.1
Real household disposable income
1.6
2.3
0.7
(0.2)
Probability weighting (%)
40
30
25
5
Sensitivity analysis impact on impairment of 100 per cent weighting
£(5.3) m
£(15.0) m
£17.9m
£61.8m
g)	Management overlays and post-model adjustments (PMAs)
Overlays and PMAs are adjustments to ECL at either a customer or portfolio level to account for known data or model limitations and are defined consistently 
with the most recent recommendations of the Taskforce on Disclosures about Expected Credit Losses (DECL). Internal governance is in place to regularly 
monitor and reduce reliance such overlays through model recalibration or redevelopment.
Management overlays and PMAs include those arising from modelling specific economic uncertainties or operational adjustments due to model or data 
limitations which require a permanent remodelling solution. The effects of overlays and PMAs is not significant. 
h)	Collateral relating to loans and advances to customers
As described in note 5.3, on 15 August 2023, Sainsbury’s Bank completed the sale and transfer of beneficial ownership of its mortgage portfolio. Mortgages 
held over residential properties represented the only collateral held by the Group for retail exposures. 
The market value of collateral held for impaired loans and loans past due but not impaired was £nil (2023: £17 million). 
The value of collateral used in determining the LTV ratios is estimated based upon the last actual valuation, adjusted to take into account subsequent 
movements in house prices.
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172  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
28 Financial risk management continued
28.2 Credit risk continued
i)	 Forbearance
The Group provides support to customers who are experiencing financial difficulties. Forbearance is defined as relief granted by a lender to assist customers 
in financial difficulty, through arrangements which temporarily allow the customer to pay an amount other than the contractual amounts due. These 
temporary arrangements may be initiated by the customer or the Group where financial difficulty would prevent repayment within the original terms 
and conditions of the contract.
The main aim of forbearance is to support customers in returning to a position where they are able to meet their contractual obligations. 
The Group has well defined forbearance policies and processes. A number of forbearance options are made available to customers. These include 
arrangements to repay arrears over a period of time by making payments above the contractual amount, that ensure the loan is repaid within the original 
repayment term and short-term concessions, where the borrower is allowed to make reduced repayments (or in exceptional circumstances, no repayments) 
on a temporary basis to assist with short-term financial hardship.
Loans and advances subject to forbearance programmes
 
2024
2023
Forbearance
Forbearance
 
Gross 
amounts
As proportion 
of total 
Proportion 
covered by 
provision
Gross 
amounts
As proportion 
of total 
Proportion 
covered by 
provision
 
£m
%
%
£m
%
%
Unsecured
53
1.1
67.2
61
1.2
69.1
Secured
—
—
—
1
0.2
4.5
53
1.1
67.2
62
1.1
68.1
28.3 Market risk
The Group uses forward contracts to hedge foreign exchange and commodity exposures, and interest rate swap contracts to hedge interest rate exposures. 
The use of financial derivatives is governed by Board-approved policies which prohibit the use of derivative financial instruments for speculative purposes.
a)	 Foreign currency risk
Currency risk is the risk of increased costs arising from unexpected movements in exchange rates impacting the Group’s foreign currency-denominated 
supply contracts. 
The Group’s currency risk policy seeks to limit the impact of fluctuating exchange rates on the Group’s income statement by requiring highly probable foreign 
currency cash flows to be hedged. Highly probable foreign currency cash flows, which may be either contracted or un-contracted, are hedged on a layered 
basis largely using foreign currency forward contracts.
The Group has exposure to currency risk on balances held in foreign currency-denominated bank accounts, which may arise due to short-term timing 
differences on maturing hedges and underlying supplier payments. 
A 10 per cent movement in exchange rates against pound sterling is considered a reasonable measure of volatility.
Impact of change in exchange rate (all other variables held constant)
2024
2023
Impact on 
post tax 
profits
Impact on 
cash flow 
hedge reserve
Impact on post 
tax profits
Impact on cash 
flow hedge 
reserve
 +/- 10%
 +/- 10%
 +/- 10% 
 +/- 10% 
Group
£m
£m
£m
£m
USD/GBP
7/(8)
(88)/108
5/(6)
(110)/135
EUR/GBP
2/(3)
(33)/40
2/(3)
(32)/40
Financial Services
The Bank is exposed to foreign exchange risk through its holding of cash denominated in foreign currencies, primarily Euro and US Dollar, within its travel 
money bureaux in Sainsbury’s stores and its currency dispensing ATM machines. The foreign exchange positions are hedged on a regular basis. 
b)	Interest rate risk
Interest rate risk is the risk of increased costs or lower income arising from unexpected movements in interest rates and inflation rates impacting the Group’s 
borrowing and investment portfolios. The Group’s interest rate policy seeks to limit the impact of fluctuating interest and inflation rates by maintaining a 
diversified mix of fixed rate, floating rate and variable capped rate liabilities. 
Interest on financial instruments is classified as fixed rate if interest re-sets on the borrowings are less frequent than once every 12 months. Interest on 
financial instruments is classified as floating rate if interest re-sets on the borrowings occur every 12 months or more frequently. Floating rate instruments 
are considered variable capped rate if the nominal interest rate is subject to a cap.
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J Sainsbury plc Annual Report and Financial Statements 2024  173
28 Financial risk management continued
28.3 Market risk continued
b)	Interest rate risk continued
Mix of financial assets and liabilities
2024
 
Fixed
Floating
Variable 
capped
Total
 
£m
£m
£m
£m
Interest bearing financial assets at fair value through other comprehensive income
—
761
—
761
Amounts due from Financial Services customers and other banks
2,167
2,350
—
4,517
Cash and cash equivalents
620
1,367
—
1,987
Borrowings
(122)
(581)
(496)
(1,199)
Amounts due to Financial Services customers and banks
(1,959)
(3,762)
—
(5,721)
Derivative effect:
 
 
 
 
Interest rate swaps
(1,120)
1,120
—
—
Inflation linked swaps
(155)
—
155
—
 
(569)
1,255
(341)
345
2023
 
Fixed
Floating
Variable 
capped
Total
 
Footnote
£m
£m
£m
£m
Interest-bearing financial assets at fair value through other comprehensive income
a)
—
626
—
626
Amounts due from Financial Services customers and other banks 
2,690
2,702
—
5,392
Cash and cash equivalents 
456
863
—
1,319
Borrowings 
(122)
—
(539)
(661)
Amounts due to Financial Services customers and banks
(1,477)
(4,469)
—
(5,946)
Derivative effect: 
 
 
 
 
Interest rate swaps 
(1,143)
1,143
—
—
Inflation-linked swaps 
(490)
—
490
—
 
(86)
865
(49)
730
a)	 2023 disclosure has been re-presented to exclude £63 million of investment securities which are classified as Cash and cash equivalents.
Cash flow sensitivity for floating rate instruments
The Group considers that a 100 basis point movement in interest rates is a reasonable measure of volatility; however, the sensitivity to such a change is not significant.
Cash flow sensitivity for variable capped rate liabilities
The Group holds £496 million of capped inflation-linked borrowings (2023: £539 million) of which £155 million (2023: £490 million) have been swapped into 
fixed rate borrowings using inflation rate swaps maturing in April 2026. 
The Group considers that a 100 basis point movement in the RPI rate is a reasonable measure of volatility, however, the sensitivity to such a change is not significant.
Financial Services
Interest Rate Risk in the Banking Book (IRRBB) arises from interest rate movements which impact the present value and timing of future cash flows resulting 
in changes in the underlying value of a bank’s assets and liabilities and hence its economic value. Interest rates movements also affect a bank’s earnings by 
altering interest-sensitive income and expenses, affecting its net interest income.
The main types of interest rate risk faced by the Bank are:
•	 Re-pricing gap risk: the risk arising from timing differences in the interest rate changes of bank assets and liabilities (e.g. fixed rate personal loans and 
instant access savings accounts)
•	 Yield curve risk: the risk arising from changes in the slope and shape of the yield curve
•	 Basis risk: risk arising from imperfect correlation between different interest rate indices (e.g. administered rate on savings products and treasury assets 
linked to SONIA)
•	 Prepayment risk: the risk arising from the timing of customer prepayments which differ from planning and hedging assumptions
•	 Pipeline risk: the risk of a customer drawing down, or not, a product at a rate which is unfavourable for the Bank
•	 Credit Spread Risk: the risk of adverse effects resulting from a change in credit spreads, arising via the Bank’s Treasury portfolio
Interest risk exposure is actively managed within limits that are aligned with the Bank’s risk appetite by using financial instruments such as interest rate 
swaps and by taking into account natural hedges between assets and liabilities with similar repricing characteristics. Hedging strategies are implemented 
and reviewed to ensure the Bank remains within its limits. 
c)	 Commodity risk
Commodity risk is the risk of increased costs arising from unexpected movements in commodity prices impacting the Group’s own use consumption of 
electricity, gas and diesel. The Group hedges own use consumption of electricity and gas with forward purchases under flexible purchasing arrangements 
with its suppliers as well as power purchase agreements for electricity. The Group uses a combination of purchasing agreements and financial derivatives to 
hedge fuel exposures on a layered basis using contracts for difference. See note 30 for derivative disclosures.
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Financial Statements

174  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
28 Financial risk management continued
28.4 Capital risk management
The Group defines capital as total equity plus net debt.
The Board’s capital objective is to maintain a strong and efficient capital base to support the Group’s strategic objectives, provide optimal returns for 
shareholders and safeguard the Group’s status as a going concern. There has been no change to capital risk management policies during the year. 
The Board monitors a broad range of financial metrics including return on capital employed, balance sheet gearing and fixed charge cover. 
The Board can manage the Group’s capital structure by diversifying the debt portfolio, adjusting the size and timing of dividends paid to shareholders, 
recycling capital through sale and leaseback transactions, issuing new shares or repurchasing shares in the open market and flexing capital expenditure.
From time to time, the ESOT may purchase shares in the Company from the open market for the purpose of satisfying awards under the Group’s employee 
share plans; however, the Group does not currently operate a defined share buy-back plan.
The Revolving Credit Facility and Term Loan have a single repeating financial covenant. Part of the Group’s capital risk management is to ensure compliance 
with both the financial and general covenants included within the Group’s borrowing facilities. Examples of general covenants include restrictions on the 
permitted value of asset disposals and incremental indebtedness. In addition to there being no breaches in the year of financial and general covenants, there 
is healthy headroom within all covenants as at 2 March 2024. 
a)	Financial Services capital resources (unaudited)
Regulatory capital is calculated under the Capital Requirements Regulations and Capital Requirements Directive (collectively known as CRD IV). The Bank 
has obtained an individual consolidation waiver from the PRA, which allows the Bank to monitor its capital position on a consolidated basis only. As a result, 
the capital position set out below is on a regulatory consolidated basis.
Regulatory capital resources under CRD IV
2024
2023
 
Transitional 
Full impact 
Transitional 
Full impact 
£m 
£m
£m 
£m
Common Equity Tier 1 (CET 1) capital:
Ordinary share capital
701
701
701
701
Allowable reserves
48
48
165
165
Regulatory adjustments
—
(1)
(144)
(167)
Tier 1 capital
749
748
722
699
Tier 2 capital (loan notes – listed)
100
100
113
113
Total capital
849
848
835
812
b) Leverage ratio (unaudited)
The leverage ratio is defined as the ratio of Tier 1 capital to adjusted assets, which is measured below on a regulatory consolidated basis. The denominator 
represents the total non-risk weighted assets of the regulatory group (Bank and Home Retail Group Card Services Limited) adjusted for certain off balance 
sheet exposures assets and regulatory deductions and provides a non-risk-weighted ‘backstop’ capital measure. The leverage ratio is calculated below on the 
UK basis which allows central bank assets to be excluded from the leverage exposures. The Bank’s leverage ratio of 11.3% exceeds the minimum Basel 
leverage ratio of 3%.
2024
2023
 
Transitional 
Full impact 
Transitional 
Full impact 
£m 
£m
£m 
£m
Components of the leverage ratio
 
 
 
 
Total assets as per published financial statements (Sainsbury’s Bank plc consolidated group)
6,816
6,816
7,209
7,209
Movement on consolidation of subsidiary undertakings
(6)
(6)
(6)
(6)
Exposure value for derivatives and securities financing transactions
30
30
32
32
Off balance sheet exposures: unconditionally cancellable (10%)
769
769
867
867
Off balance sheet: other (100%)
1
1
2
2
Other adjustments
(77)
(78)
(242)
(265)
Central Bank claims
(886)
(886)
(331)
(331)
6,647
6,646
7,531
7,508
Tier 1 capital
749
748
722
699
Leverage ratio
11.3%
11.3%
9.6%
9.3%
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J Sainsbury plc Annual Report and Financial Statements 2024  175
29 Financial instruments
 2024
 2023
£m
£m
Held at amortised cost
Financial assets
Cash and cash equivalents
1,987
1,319
Trade and other receivables
444
477
Amounts due from Financial Services customers and other banks
4,517
5,392
Financial liabilities
 
 
Trade and other payables
(4,768)
(4,495)
Borrowings
(1,195)
(656)
Amounts due to Financial Services customers and banks
(5,721)
(5,946)
Lease liabilities
(5,354)
(6,489)
Held at fair value through other comprehensive income (OCI)
 
 
Financial assets
778
1,009
Held at fair value through profit or loss
 
 
Derivative financial instruments
(11)
213
(9,323)
(9,176)
29.1 Fair value estimation of amounts held at amortised cost
The fair values of financial assets and liabilities are based on prices available from the market on which the instruments are traded. Where market values are 
not available, the fair values of financial assets and liabilities have been calculated by discounting expected future cash flows at prevailing interest rates. 
The fair values of short-term deposits, trade receivables, other receivables, overdrafts and payables and lease liabilities are assumed to approximate to their 
book values.
2024
2023
 
 
Carrying
 amount
Fair value
Carrying
 amount
Fair value
Footnote
£m 
£m
£m 
£m
Financial assets
 
 
 
Amounts due from Financial Services customers
 a)
4,517
4,381
5,392
5,340
Financial liabilities
 
 
 
 
 
Loans due 2031 
 
(496)
(494)
(539)
(639)
Term loan
 
(581)
(575)
—
—
Tier 2 Capital due 2028
 
(122)
(136)
(122)
(131)
Amounts due to Financial Services customers and other banks
(5,721)
(5,733)
(5,946)
(5,954)
a)	 Included within a portfolio fair value hedging relationship with £2,312 million (2023: £3,033 million) of interest rate swaps
The fair value of financial assets and liabilities are within Level 2 of the fair value hierarchy, with the exception of the Tier 2 Capital, where the fair value is 
calculated using prevailing market prices and is therefore Level 1.
29.2 Fair value measurements recognised in the balance sheet
The following table provides an analysis of financial instruments that are recognised at fair value, grouped into Levels 1 to 3 based on the degree to which the 
fair value is observable:
•	 Level 1 fair value measurements are derived from quoted market prices (unadjusted) in active markets for identical assets or liabilities at the balance sheet 
date. This level includes listed equity securities and debt instrument on public exchanges
•	 Level 2 fair value measurements are derived from inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either 
directly (i.e. as prices) or indirectly (i.e. derived from prices). The fair value of financial instruments is determined by discounting expected cash flows at 
prevailing interest rates
•	 Level 3 fair value measurements are derived from valuation techniques that include inputs for the asset or liability that are not based on observable market 
data (unobservable inputs)
2024
2023 
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
£m 
£m
£m 
£m 
£m 
£m
£m 
£m 
Financial instruments at fair value 
through other comprehensive income
 
 
 
 
 
 
Other financial assets
—
17
—
17
—
383
—
383
Investment securities
761
—
—
761
626
—
—
626
Derivative financial assets
—
67
9
76
—
156
131
287
Derivative financial liabilities
—
(87)
—
(87)
—
(74)
—
(74)
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Financial Statements

176  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
29 Financial instruments continued
29.3 Level 3 financial assets
a)	Power Purchase agreements
The Group has entered into several long-term fixed and CPI-linked price Power Purchase agreements with independent producers, and values its Power 
Purchase agreements as the net present value of the estimated future usage at the contracted fixed price less the market implied forward energy price 
discounted at the prevailing swap rate. 
All Power Purchase agreements are physical arrangements. Arrangements designated in hedging relationships are classified as hedging instruments, 
whereas those not designated in hedging relationships are not classified as hedging instruments. The credit risk exposure associated with the Power 
Purchase agreements is considered immaterial.
Commodity derivative values
 
2024
2023
£m
£m 
At beginning of financial year
131
180
Charged to income statement – cost of sales
(46)
(30)
Charged to other comprehensive income
(76)
(19)
At end of financial year
9
131
b)	Sensitivity of Power Purchase agreement derivatives
The Group makes an assumption regarding expected energy output based on the historical performance and the producer’s estimate of expected electricity 
output. The sensitivity of this is shown below: 
2024
Change in
 output
 volume 
 +/-20.0%
Change in 
forward 
pricing
+/-20.0%
Sensitivities 
£m
£m
Not in a hedge relationship
1/(1)
9/(9)
Designated in a cash flow hedge relationship
1/(1)
29/(29)
c)	 Offsetting financial instruments
Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised 
amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be 
contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company 
or the counterparty.
The following table sets out the Group’s financial assets and financial liabilities that are subject to counterparty offsetting or a master netting agreement. 
The master netting agreements regulate settlement amounts in the event a party defaults on their obligations. 
Financial assets and financial liabilities subject to counterparty offsetting or a master netting agreement
2024
 
Gross 
amounts 
recognised 
Amounts 
offset 
Net amounts
 recognised 
Cash 
collateral 
pledged 
(not offset)
Net 
amounts
£m
£m
£m
£m
£m
Assets
 
 
 
 
 
Derivative financial assets
76
—
76
(10)
66
Trade and other receivables
470
(26)
444
—
444
Cash and cash equivalents
1,987
—
1,987
—
1,987
2,533
(26)
2,507
(10)
2,497
Liabilities
 
 
 
 
 
Derivative financial liabilities 
(87)
—
(87)
56
(31)
Trade and other payables
(4,794)
26
(4,768)
—
(4,768)
(4,881)
26
(4,855)
56
(4,799)
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J Sainsbury plc Annual Report and Financial Statements 2024  177
29 Financial instruments continued
29.3 Level 3 financial assets continued
c)	 Offsetting financial instruments continued
Financial assets and financial liabilities subject to counterparty offsetting or a master netting agreement continued
2023
 
Gross  
amounts 
recognised 
Amounts 
offset 
Net amounts
 recognised 
Cash  
collateral 
pledged 
(not offset)
Net 
amounts
£m
£m
£m
£m
£m
Assets
 
 
 
 
 
Derivative financial assets
287
—
287
(49)
238
Trade and other receivables
624
(147)
477
—
477
Cash and cash equivalents
1,319
—
1,319
—
1,319
2,230
(147)
2,083
(49)
2,034
Liabilities
 
 
 
 
 
Derivative financial liabilities 
(74)
—
(74)
52
(22)
Trade and other payables
(4,642)
147
(4,495)
—
(4,495)
(4,716)
147
(4,569)
52
(4,517)
The Group holds certain financial derivatives which are subject to credit support agreements. Under these agreements cash collateral is posted by one party 
to the other party should the fair value of the financial derivative exceed a pre-agreed level. The Group held no collateral against these financial derivative 
assets (2023: £nil). 
The Financial Services segment has derivatives that are governed by the International Swaps and Derivatives Association (ISDA) and their associated credit 
support annex bilateral agreements where if the fair value exceeds a pre-agreed level, cash collateral is posted. Collateral of £56 million has been pledged/
provided (2023: £49 million) against the derivatives and collateral has been received of £10 million (2023: £52 million).
The Group also operates a cash pooling arrangement and collective net overdraft facility with its main clearing bank. The Group had a net overdraft of £nil 
(2023: £nil) under this facility. 
30 Derivative financial instruments and hedge accounting
30.1 Effects of hedge accounting on the Group’s financial position and performance
 
2024
2023
 
Asset
Liability
Asset
Liability
 
Fair value
Notional
Fair value
Notional
Fair value
Notional
Fair value
Notional
£m 
 £m
£m 
 £m
£m
£m
£m
£m
Fair value hedges
 
 
 
 
 
 
 
 
Interest rate swaps
62
1,249
(56)
1,063
99
2,149
(52)
675
Cash flow hedges
 
 
 
 
 
 
 
 
Inflation rate swaps
—
—
—
155
—
490
—
—
Interest rate swaps
—
150
—
—
—
—
—
—
Foreign exchange forward contracts
4
296
(30)
1,062
49
1,049
(17)
482
Commodity contracts
1
22
(1)
24
7
21
(5)
45
Power Purchase contracts
3
14
—
—
79
15
—
—
Derivatives not in a formal hedging 
relationship
 
 
 
 
 
 
 
 
Interest rate swaps
—
—
—
—
1
209
—
—
Cross-currency swaps
—
23
—
20
—
—
—
—
Foreign exchange forward contracts
—
—
—
2
—
14
—
—
Power Purchase contracts
6
11
—
—
52
11
—
—
Total
76
1,765
(87)
2,326
287
3,958
(74)
1,202
Strategic Report
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Financial Statements

178  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
30 Derivative financial instruments and hedge accounting continued
30.1 Effects of hedge accounting on the Group’s financial position and performance continued
a)	Cash flow hedges
There is an economic relationship between the hedged items and the hedging instruments as the terms of the interest rate swaps, foreign exchange and 
commodity forward contracts match the terms of the expected highly probable forecast transactions (i.e., notional amount and expected payment date). 
The Group has established a hedge ratio of 1:1 for the hedging relationships as the underlying risk of the foreign exchange and commodity forward contracts 
are identical to the hedged risk components. To test the hedge effectiveness, the Group uses the hypothetical derivative method and compares the changes 
in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks.
Hedge ineffectiveness can arise from:
•	 Differences in the timing of the cash flows of the hedged items and the hedging instruments
•	 Different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and hedging instruments
•	 The counterparties’ credit risk differently impacting the fair value movements of the hedging instrument compared to the hedged items
•	 Changes to the forecasted cash flows of hedged items 
The maturity profile and average price/rate of the hedging instruments used in the Group’s non-dynamic hedging strategies of interest rate risk were 
as follows:
Maturity profile of instruments used in non-dynamic hedging strategies of interest rate risk:
 
2024
2023
 
Notional 
amount
Average 
interest 
received
Notional 
amount
Average 
interest 
received
 
£m
%
£m
%
Less than 1 month
—
—
—
—
1 – 3 months
—
—
490
5.00%
3 months – 1 year
—
—
—
—
1 – 5 years
305
4.94%
—
—
More than 5 years
—
—
—
—
Impact of change in value of hedged items on cash flow hedge reserve
2024
2023
 
Hedged 
item 
Hedging
 instrument 
Cumulative
 impact in 
reserve 
Hedged 
item 
Hedging 
instrument 
Cumulative
 impact in 
reserve 
£m
£m
£m
£m
£m
£m
Cash flow hedges
Foreign exchange forward contracts
67
(67)
(19)
(123)
123
9
Commodity contracts
6
(6)
—
11
(11)
2
Power Purchase agreements
76
(76)
3
19
(19)
79
There are no amounts remaining in the hedging reserve for which hedge accounting is no longer applied.
Analysis of fair value movements in cash flow hedge reserve by risk category
2024
Reclassification recognised in
Opening
£m
Movements 
recognised 
in OCI 
£m
Amounts
reclassified
£m
Reallocation
 within
 reserves
£m
Closing
£m
Foreign exchange forward contracts 
Inventory
9
(67)
32
7
(19)
Commodity contracts
Cost of sales
2
(6)
4
— 
—
Power Purchase agreements
Cost of sales
79
(76)
—
— 
3
Tax
 
(22)
17
—
(7)
(12)
 
68
(132)
36
—
(28)
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  179
30 Derivative financial instruments and hedge accounting continued
30.1 Effects of hedge accounting on the Group’s financial position and performance continued
a)	Cash flow hedges continued
Analysis of fair value movements in cash flow hedge reserve by risk category continued
2023
Reclassification recognised in
Opening
£m
Movements 
recognised 
in OCI 
£m
Amounts
reclassified
£m
Reallocation 
within reserves
£m
Closing
£m
Inflation rate swap
Finance costs
5
—
(5)
—
—
Foreign exchange forward contracts
Inventory
25
123
(139)
—
9
Commodity contracts
Cost of sales
25
(11)
(12)
—
2
Power Purchase agreements
Cost of sales
98
(19)
—
—
79
Tax
 
(36)
14
—
—
(22)
 
 
117
107
(156)
—
68
b)	Fair value hedges
Within the Financial Services business, interest rate swaps are executed to hedge interest rate risk arising from fixed rate exposures in its retail personal loan 
and retail mortgage books, and certain fixed rate treasury investment securities, which are predominantly funded by variable rate linked liabilities. 
The cash flows under the hedging instruments (interest rate swap derivatives) substantially match the cash flow profile of the hedged items (personal loans, 
mortgages, treasury investment securities and borrowings). The changes in fair value of the derivatives offset changes in the fair value of the hedged items 
through the income statement, with any ineffective portion also being recognised in the income statement.
The main source of ineffectiveness within the micro hedge relationships relates to the floating leg valuation changes inherent within the hedging instrument 
that do not exist within the hedged item. Ineffectiveness on portfolio hedges can also arise as a result of mismatch in cash flow maturities between the 
hedged item and hedging instrument and basis risk between cash flows discounted using different benchmark rates.
Maturity profile of instruments used in non-dynamic hedging strategies of interest rate risk
 
2024
2023
 
Notional 
amount
Average 
fixed interest
 rate
Notional 
amount
Average 
fixed interest 
rate
 
£m
%
£m
%
Less than 1 month
—
—
—
—
1 – 3 months
17
0.60%
125
0.73%
3 months – 1 year
231
0.70%
589
0.71%
1 – 5 years
956
3.90%
748
1.17%
More than 5 years
1,109
2.19%
1,362
3.50%
Impact of hedged items (all via interest rate swaps) on financial statements 
2024
Carrying amount 
Change in fair 
value for
 measuring 
ineffectiveness
Cumulative fair value 
hedge adjustments included
 in carrying amount
Assets
Liabilities
Assets
Liabilities
Line item in financial statements
£m
£m
£m
£m
£m
Amounts due from Financial Services customers
2,155
—
36
(7)
—
Borrowings
—
(122)
—
—
3
 
2,155
(122)
36
(7)
3
2023
Carrying amount 
Change in fair 
value for
 measuring 
ineffectiveness
Cumulative fair value 
hedge adjustments included
 in carrying amount
Assets
Liabilities
Assets
Liabilities
Line item in financial statements
£m
£m
£m
£m
£m
Amounts due from Financial Services customers
2,615
—
(27)
(43)
—
Financial assets at FVOCI
—
—
3
—
—
Borrowings
—
(122)
5
—
3
 
2,615
(122)
(19)
(43)
3
Strategic Report
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Financial Statements

180  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
30 Derivative financial instruments and hedge accounting continued
30.1 Effects of hedge accounting on the Group’s financial position and performance continued
b) Fair value hedges continued
Impact of the hedging instruments (all via interest rate swaps) on financial statements:
2024
Line item in financial statements
Hedged Item
Notional 
amount
£m
Carrying amount 
Change in fair 
value for 
measuring
ineffectiveness
£m
Asset
£m
Liability
£m
Derivative financial assets/liabilities
Loans
2,192
62
(56)
(41)
Derivative financial liabilities
Tier 2 capital
120
—
—
—
2,312
62
(56)
(41)
 
2023
Line item in financial statements
Hedged item
Notional 
amount
£m
Carrying amount 
Change in fair 
value for 
measuring
ineffectiveness
£m
Asset
£m
Liability
£m
Derivative financial assets/liabilities
Loans and mortgages
2,704
99
(52)
35
Derivative financial liabilities
Tier 2 capital
120
—
—
1
Derivative financial assets
Investment securities
—
—
—
(5)
2,824
99
(52)
31
Hedge ineffectiveness recognised in cost of sales
 
2024
2023
Change in value for calculating hedge ineffectiveness
 
£m
£m
Hedged items
 
36
(19)
Hedging instruments
(41)
31
 
(5)
12
c)	 Derivatives not in a hedge relationship
Some of the Group’s derivative contracts do not qualify for hedge accounting and are therefore not designated in a hedging relationship. In addition, where 
gains or losses on a derivative contract economically offset the gains or losses on an underlying transaction, the derivative is not designated as being in a 
hedging relationship. 
The Group has entered into several long-term fixed price and CPI linked Power Purchase agreements with independent producers and certain contracts do 
apply a CPI uplift to the fixed price, as detailed in note 29, of which £6 million (2023: £53 million) is not within a hedging relationship with fair value losses of 
£46 million (2023: loss of £29 million) having been recognised in the income statement for these arrangements.
31 Cash and cash equivalents
31.1 Balance sheet
 
2024
2023
 
£m
£m
Cash in hand and bank balances
606
569
Money market funds
263
255
Money market deposits
232
150
Deposits at central banks
886
345
1,987
1,319
Restricted amounts included above
Held as a reserve deposit with the Bank of England
14
15
For insurance purposes
7
3
Held within the Group's Employee Share Ownership Trust
—
10
21
28
31.2 Cash flow statement
Amounts due from Financial Services customers
Cash flows differ from the movement in the balance sheet owing mainly to fair value movements of £39 million (2023: £27 million) and proceeds of amounts 
due from Financial Service customers of £446 million (2023: £nil) presented within cash flows from investing activities.
Strategic Report
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  181
32 Analysis of net debt
The Group’s definition of net debt includes the following:
•	 Cash
•	 Borrowings and overdrafts
•	 Lease liabilities
•	 Debt-related financial assets at fair value through other comprehensive income
•	 Derivatives used in hedging borrowings
Derivatives exclude those not used to hedge borrowings, and borrowings exclude bank overdrafts as they are disclosed separately.
32.1 Reconciliation of opening to closing net debt
 
Cash Movements
Non-Cash Movements
2 March 
2024
£m
 
5 March 
2023
Cash flows 
excluding 
interest
Net interest 
(received)/
 paid
Accrued 
interest
Other 
non-cash 
movements
Changes in 
fair value
 
£m
£m
£m
£m
£m
£m
Retail
 
 
 
 
 
 
 
Net derivative financial instruments
—
—
(1)
1
—
—
—
Borrowings (excluding overdrafts)
(539)
(534)
60
(64)
—
—
(1,077)
Lease liabilities
(6,488)
505
264
(264)
629
—
(5,354)
Arising from financing activities
(7,027)
(29)
323
(327)
629
—
(6,431)
Financial assets at fair value through other 
comprehensive income
—
—
—
—
—
—
—
Cash and cash equivalents 
683
194
—
—
—
—
877
Retail net debt
(6,344)
165
323
(327)
629
—
(5,554)
Financial Services
Net derivative financial instruments
—
—
—
—
—
—
—
Borrowings (excluding overdrafts)
(122)
—
13
(13)
—
—
(122)
Lease liabilities
(1)
2
—
—
(1)
—
—
Arising from financing activities
(123)
2
13
(13)
(1)
—
(122)
Financial assets at fair value through other 
comprehensive income
626
135
—
—
—
—
761
Cash and cash equivalents
636
474
—
—
—
—
1,110
Financial Services net debt
1,139
611
13
(13)
(1)
—
1,749
Group
Net derivative financial instruments
—
—
(1)
1
—
—
—
Borrowings (excluding overdrafts)
(661)
(534)
73
(77)
—
—
(1,199)
Lease liabilities
(6,489)
507
264
(264)
628
—
(5,354)
Arising from financing activities
(7,150)
(27)
336
(340)
628
—
(6,553)
Financial assets at fair value through other 
comprehensive income
626
135
—
—
—
—
761
Cash and cash equivalents 
1,319
668
—
—
—
—
1,987
Group net debt
(5,205)
776
336
(340)
628
—
(3,805)
Other non-cash movements relate to new leases and foreign exchange.
Strategic Report
Governance Report
Financial Statements

182  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
32 Analysis of net debt continued
32.1 Reconciliation of opening to closing net debt continued
 
Cash Movements
Non-Cash Movements
4 March 
2023
£m
 
6 March 
2022
Cash flows 
excluding 
interest
Net interest 
(received)/
 paid
Accrued 
interest
Other 
non-cash 
movements
Changes in 
fair value
 
£m
£m
£m
£m
£m
£m
Retail
Net derivative financial instruments
5
—
(5)
5
(5)
—
—
Borrowings (excluding overdrafts)
(575)
40
45
(40)
(9)
—
(539)
Lease liabilities
(6,618)
512
267
(267)
(382)
—
(6,488)
Arising from financing activities
(7,188)
552
307
(302)
(396)
—
(7,027)
Financial assets at fair value through other 
comprehensive income
— 
—
—
—
—
—
— 
Cash and cash equivalents 
436 
247
—
—
—
—
683 
Bank overdrafts 
(7)
7
—
—
—
—
—
Retail net debt 
(6,759)
806 
307 
(302)
(396)
— 
(6,344)
Financial Services
Net derivative financial instruments
4
—
—
—
—
(4)
—
Borrowings (excluding overdrafts)
(179)
55
9
(12)
—
5
(122)
Lease liabilities
(3)
2
—
—
—
—
(1)
Arising from financing activities
(178)
57
9
(12)
—
1
(123)
Financial assets at fair value through other 
comprehensive income
418 
207
—
—
—
1
626 
Cash and cash equivalents
389 
247
—
—
—
—
636 
Financial Services net debt
629 
511 
9 
(12)
— 
2 
1,139 
Group
Net derivative financial instruments
9
—
(5)
5
(5)
(4)
—
Borrowings (excluding overdrafts)
(754)
95
54
(52)
(9)
5
(661)
Lease liabilities
(6,621)
514
267
(267)
(382)
—
(6,489)
Arising from financing activities
(7,366)
609
316
(314)
(396)
1
(7,150)
Financial assets at fair value through other 
comprehensive income
418
207
—
—
—
1
626 
Cash and cash equivalents 
825
494
—
—
—
—
1,319 
Bank overdrafts 
(7)
7
—
—
—
—
— 
Group net debt 
(6,130)
1,317 
316 
(314)
(396)
2 
(5,205)
33 Borrowings
 
2024
2023
 
Current
Non-current
Total
Current
Non-current
Total
 
£m
£m
£m
£m
£m
£m
Loan due 2031
54
442
496
48
491
539
Term loan due 2026
6
575
581
—
—
—
Sainsbury's Bank Tier 2 Capital
6
116
122
6
116
122
66
1,133
1,199
54
607
661
Transaction costs
(1)
(3)
(4)
(1)
(4)
(5)
65
1,130
1,195
53
603
656
Strategic Report
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  183
33 Borrowings continued
33.1 Loan due 2031
The loan is secured against 48 (2023: 48) supermarket properties (note 14.2). This is an inflation-linked amortising loan from the finance company Longstone 
Finance plc with an outstanding principal value of £486 million (2023: £527 million) fixed at a real rate of 2.36 per cent where principal and interest rate are 
uplifted annually by RPI subject to a cap at five per cent and a floor at nil per cent. The loan has a final repayment date of April 2031. The principal activity 
of Longstone Finance plc is the issuance of commercial mortgage-backed securities and applying the proceeds towards the secured loans due 2031.
The Group has entered into forward starting inflation swaps to convert £155 million (2023: £490 million) from RPI-linked interest to fixed rate interest from 
April 2025 until April 2026. These transactions have been designated as cash flow hedges.
Intertrust Corporate Services Limited holds all the issued share capital of Longstone Finance Holdings Limited on trust for charitable purposes. Longstone 
Finance Holdings Limited beneficially owns all the issued share capital of Longstone Finance plc. As the Group has no interest, power or bears any risk over 
these entities they are not included in the Group consolidation.
33.2 Sainsbury’s Bank Tier 2 Capital 
The Group has £120 million of fixed rate reset callable subordinated Tier 2 notes in issuance (2023: £120 million), which were issued in September 2022. These 
notes pay interest on the principal amount at a rate of 10.5 per cent per annum, payable in equal instalments semi-annually in arrears, until March 2028 at 
which time the interest rate will reset. The Bank has the option to redeem these notes in March 2028.
33.3 Term loan due 2026
The Group entered into a £575 million unsecured term loan in December 2022, with maturity of March 2026. As at 2 March 2024, the term loan was fully drawn 
(4 March 2023: £nil).
33.4 Undrawn facilities
The Group’s Revolving Credit Facility (RCF) is unsecured and is split into two Facilities, a £500 million Facility (A) and a £500 million Facility (B). Facility A 
has a maturity of December 2028 and Facility B has a maturity of December 2027.
34 Retirement benefit obligations
34.1 Background
Retirement benefit obligations relate to the Sainsbury’s Pension Scheme plus three unfunded pension liabilities for former senior employees of Sainsbury’s 
and Home Retail Group. 
The Sainsbury’s Pension Scheme has two sections, the Sainsbury’s Section, which holds the assets and liabilities of the original Sainsbury’s Pension Scheme, 
and the Argos Section, which holds the assets and liabilities of the former Home Retail Group Pension Scheme. Each section’s assets are segregated by deed 
and ring-fenced for the benefit of the members of that section. The Scheme is run by a corporate trustee with nine directors.
The Scheme is also used to pay life assurance benefits to current (including new) colleagues.
Sainsbury’s section
The section was closed to new employees on 31 January 2002 and closed to future accrual on 28 September 2013. There are three benefit categories: final 
salary, career average and cash balance. Final salary and career average benefits are determined by service and salary. Cash balance benefits are determined 
by the accrued retirement account credits. 
Argos section
The section was closed to new employees in 2009 and to future accrual in January 2013. Pension benefits are based on service and final salary when leaving the Scheme.
Triennial valuation
The Trustee’s triennial valuation is used to determine the contributions required for the Scheme to pay all the benefits due, now and in the future. The Trustee 
must allow for a level of prudence resulting in these assumptions placing a relatively high value on the Scheme’s liabilities. By contrast, IAS 19 ‘Employee 
Benefits’ requires companies to value the liabilities on a ‘best estimate’ basis which places a lower value on the liabilities and therefore a more favourable 
financial position. As such, the accounting value is different to the result obtained using the Trustee’s triennial valuation basis.
The most recent triennial valuation was as at 30 September 2021, resulting in an actuarial surplus of £130 million (comprising a surplus of £231 million in the 
Sainsbury’s section and a £101 million deficit in the Argos section) on a technical provisions basis. The asset-backed contributions structure (ABC) established 
by Sainsbury’s in July 2019 continues to deliver as planned. 
Under the ABC structure, properties with a valuation of £1,350 million were transferred into a newly formed property holding company – Sainsbury’s Property 
Holdings Limited (Propco) from the Sainsbury’s Property Scottish Partnership and other Sainsbury’s Group Companies. The Propco is a wholly owned 
subsidiary of the Group and leases the transferred properties to other Group companies. Rental receipts facilitate payments of interest and capital on loan 
notes issued to the Partnership, in which the Scheme holds an interest.
The Partnership is controlled by Sainsbury’s and its results are consolidated by the Group. The Scheme’s investment in the Partnership does not qualify as a 
plan asset for the purposes of the Group’s consolidated financial statements and is therefore not included within the fair value of plan assets.
The value of the properties transferred to the Propco remains in the Group’s property, plant and equipment on the balance sheet, and the Group retains full 
operational flexibility to extend, develop and substitute them.
The Scheme’s interest in the Partnership entitled it to annual distributions over up to 20 years initially through three payment streams:
1)	
Payments to the Sainsbury’s section (£15 million per year) which stopped from December 2021
2)	
Payments to the Argos section (£20 million per year)
3)	
Switching payment stream, paid to either the Sainsbury’s section or Argos section (initially £23 million per year, increasing to £33 million by 2038)
The payments to the Sainsbury’s and Argos sections (streams 1 and 2) would stop in 2030, or when the relevant section reached its funding target, if earlier. 
The Sainsbury’s section reached its funding target on 31 December 2021 and so the first payment stream was permanently switched off, even though the 
subsequent updating of assumptions under the 2021 triennial valuation resulted in a small deficit on this funding basis. 
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184  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
34 Retirement benefit obligations continued
34.1 Background continued
Triennial valuation continued
The switching stream (stream 3) was initially paid to the Sainsbury’s section until it reached the funding target, when it switched to the Argos section. 
Payments continue until 2038 or until both sections have reached their funding targets, if earlier. 
The level of property in the Propco reduces as the Scheme reaches the funding targets. The level of security was designed to reduce as the Scheme’s funding level 
improves, as the risk of a Group insolvency to the Scheme reduces. Once a section reaches a specific funding target for three consecutive quarters, the level of 
security that the Scheme can access reduces at the following 31 March in line with the Residual Security Amount (RSA) caps set out in the ABC framework. The 
security is currently provided by properties in the ABC which are valued annually. If the value of the security is outside a corridor either side of the RSA, the Company 
must top up if the value is less, or can chose to remove property from the Propco if the value is higher; however, if a default event were to occur, the Scheme would 
only have rights over the security to the value of the RSA – any excess value would remain in the Propco and revert to the Company.
Unfunded pension liabilities
The unfunded pension liabilities are unwound when each employee either retires and draws their pension or the pension is taken as a lump sum on 
retirement or upon leaving.
34.2 Income statement
 
2024
2023
 
Footnote
£m
£m
Excluded from underlying profit before tax:
 
 
Interest cost on pension liabilities
a)
(290)
(221)
Interest income on plan assets
 
341
277
Total included in finance income
 
51
56
Defined benefit pension scheme expenses
 
(7)
(6)
Settlement gains
b)
—
8
Total (excluded from underlying profit before tax)
 
44
58
a)	 Includes interest of £1 million for the unfunded pension scheme (2023: £1 million). 
b)	 2023: A settlement credit relating to a gain on payments made to members exiting the scheme relative to the liabilities.
34.3 Remeasurements included in other comprehensive income
 
2024
2023
 
Footnote
£m
£m
Return on plan assets, excluding amounts included in interest
(335)
(4,739)
Actuarial (losses)/gains arising from changes in
Finance assumptions
 
(34)
3,518
Demographic assumptions
 
116
38
Experience
 
(136)
(215)
Total actuarial (losses)/gains
a)
(54)
3,341
Total remeasurements
(389)
(1,398)
a)	 Includes £nil for the unfunded pension scheme (2023: £13 million).
34.4 Balance sheet
 2024
 2023
 
Sainsbury’s
Argos
Group
Sainsbury’s
Argos
Group
 
£m
£m
£m
£m
£m
£m
Present value of funded obligations
(5,172)
(816)
(5,988)
(5,128)
(793)
(5,921)
Fair value of plan assets
5,777
925
6,702
6,007
927
6,934
Retirement benefit surplus
605
109
714
879
134
1,013
Present value of unfunded obligations
(14)
(10)
(24)
(12)
(12)
(24)
Retirement benefit surplus
591
99
690
867
122
989
The retirement benefit surplus and the associated deferred income tax balance are shown within different line items on the face of the balance sheet.
Movements in net defined benefit surplus
 2024
 2023
 
Assets
Obligations
Net
Assets
Obligations
Net
 
£m
£m
£m
£m
£m
£m
As at the beginning of the financial year
 
6,934
(5,945)
989
11,693
(9,410)
2,283
Interest income/(cost)
 
341
(290)
51
277
(221)
56
Remeasurement (losses)/gains
 
(335)
(54)
(389)
(4,739)
3,341
(1,398)
Pension scheme expenses
 
—
(7)
(7)
(6)
—
(6)
Employer contributions
 
44
—
44
44
—
44
Benefits (paid)/received
 
(282)
284
2
(306)
308
2
Settlement (losses)/gains
 
—
—
—
(29)
37
8
As at the end of the financial year
6,702
(6,012)
690
6,934
(5,945)
989
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34 Retirement benefit obligations continued
34.5 Investment strategy and risks associated with defined benefit pension scheme
The investment strategy of the Scheme is determined by the Trustee. The Trustee considers that its primary responsibility in respect of investments is to 
ensure, for the duration of the Scheme, that funds will be available to meet the benefit payment obligations as they fall due. The Trustee continues to target 
being funded on a gilts +0.5% p.a. basis, while limiting the downside risk associated with investment policy wherever possible. The investment objectives 
target a 50% or better chance of being fully funded on this basis by the end of 2024 for the Argos section and the end of 2028 for the Sainsbury’s section. 
In June 2023, the UK High Court (Virgin Media Limited v NTL Pension Trustees II Limited) ruled that certain historical amendments for contracted out defined 
benefit schemes were invalid if they were not accompanied by the correct actuarial confirmation. The judgment is subject to appeal. The Trustee and Group 
continue to monitor developments and will consider the implications if the ruling is upheld or the Government issues any new regulations in response to this issue.
Risks associated with achieving the strategy
Risk
Description
Mitigation
Investment Strategy 
and implementation 
Misalignment of the investment strategy relative to changes 
in liabilities reduces the future resources available to meet 
pension obligations.
The strategy also includes addressing sustainability, ESG and 
climate risks which exist across the activities of the entities in 
which the Scheme ultimately invests. Investment managers 
may not have appropriate policies and procedures in place to 
address ESG risks.
Poor execution, attention to regulation or underperformance 
in applying the strategy could lead to lower funding levels.
Using an FCA regulated investment advisor, a liability-driven 
investment (LDI) framework has been adopted to generate 
excess asset returns aligned to liabilities by largely removing 
interest and inflation uncertainties.
ESG and related risks are incorporated into the Statement of 
Investment Principles (SIP), and an annual TCFD report and 
Implementation Statement are published covering risk 
management and goals. 
Investment managers have signed up to international ESG 
principles and are requested to confirm that they operate in line 
with the Trustee’s policies on ESG. 
Investment mandates are monitored closely against portfolio 
benchmarks set out in investment guidelines. The Investment 
Committee will terminate consistently underperforming 
mandates and reallocate capital.
Investment Liquidity 
Insufficient liquidity to meet cashflow requirements to make 
collateral top up requests to manage the Scheme’s derivative 
positions and member benefit payments.
The Scheme adopts a collateral sufficiency framework to ensure 
that sufficient liquid assets are maintained. The Investment 
Adviser liaises with the Scheme Actuary and Pensions 
Department to determine current and future cash 
flow requirements.
Investment 
Counterparty 
Financial losses may be incurred due to failure of 
counterparties or inability to roll-over derivative positions.
Asset Managers manage credit limits for all their derivative 
counterparty exposures and monitor positions over derivative 
roll dates.
Inflation
Scheme obligations are linked to inflation whereby a higher 
long-term inflation rate leads to higher liabilities.
The Scheme’s LDI portfolio and inflation-linked investments 
reduce inflation risk by aligning assets movements to changes 
in inflation expectations. Inflation increases are subject to 
maximum caps.
Interest rate
Scheme liabilities are determined using discount rates linked to 
corporate bond and gilt yields for accounting and funding 
purposes, respectively. A decrease in yields increases liabilities.
The Scheme’s LDI portfolio reduces this risk on a funding basis. 
Whilst the accounting basis may differ because of divergence 
between corporate bond and gilt yields, other assets held in the 
portfolio help to provide an additional hedge. 
Sustainability, 
including ESG and 
climate
Investment managers do not have appropriate policies and 
procedures in place to identify such risks and opportunities.
A broad range of these risks exists across the activities of the 
entities in which the Scheme ultimately invests which include 
exposure to climate transition, a lack of diversity, equity and 
inclusion, or poor corporate governance.
ESG, stewardship and other related risks are incorporated into the 
Statement of Investment Principles. The Trustee publishes an 
annual TCFD report and an Implementation Statement which 
details how climate risks are managed. Day to day management 
of ESG risks is delegated to investment managers who are 
requested to confirm that they operate in line with the 
Trustee’s policies.
A Net Zero carbon emission goal by 2050 has been adopted and 
follows new climate governance and reporting standards. The 
Scheme’s investment managers have signed up to the UN 
Principles of Responsible Investment and have Net Zero targets.
Longevity
The Scheme pays benefits longer than expected due to 
members living longer than assumed. 
Longevity risk is monitored with the aim of achieving sufficient 
funding levels which take account of the potential for increased 
life expectancy.
Since 2023, no new risks have been identified; however, some have been either combined or set out differently for presentational purposes.
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186  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
34 Retirement benefit obligations continued
34.6 Analysis of plan assets
2024
2023
 
Quoted
Unquoted 
Quoted
Unquoted
 
Footnote
£m
£m
£m
£m
Liability matching assets
3,620
1,374
3,092
1,629
Growth assets
a)
Equity
– Private
—
332
—
429
– Derivatives
b)
—
—
—
4
Alternatives
– Real Estate
—
255
—
397
– Private Debt
—
602
—
726
– Diversified Growth
—
313
—
303
Cash and Cash equivalents
206
—
354
—
 
3,826
2,876
3,446
3,488
a)	 Certain unquoted fixed interest securities, private equity and debt investments and property investments are stated at fair value. These fair values may differ from their realisable values 
due to the absence of liquid markets in these investments.
b)	 Derivatives are stated at the aggregated net present value of future discounted cash flows of each leg of the swap.
Included within liability matching assets are Government Bonds totalling £5,192 million (2023: £4,083 million), Corporate Bonds totalling £2,052 million 
(2023: £1,988 million), and Fixed income derivatives totalling £342 million (2023: £356 million), offset by repurchase agreements totalling £(2,592) million 
(2023: £(1,706) million). Circa 98% of the Scheme’s corporate bonds are invested in investment grade credit. The remainder are either unrated or below 
investment grade.
The Sainsbury’s Pension Scheme adopts a liability-driven investment (LDI) framework to manage its funding risk and reduce volatility by largely removing 
the interest rate and inflation rate impacts of its liabilities. As a result, the value of the Scheme’s assets changes in a similar way to its liabilities, which helps 
maintain its ability to pay benefits and therefore member security over the long term. 
Of the above assets, £3,565 million are denominated in pound sterling and £3,137 million are denominated in overseas currencies.
The valuation of many private market assets is based on valuations provided at 30 September 2023. A roll-forward of these valuations to 2 March 2024, 
adjusting for cash received or paid and applying the changes seen in relevant liquid indices, increased the valuation of illiquid assets by £47 million. 
Index return from 30 September 2023 to 2 March 2024 
Asset Class
Returns 
Global equity USD return
18.5%
Global High Yield Debt USD return
7.3%
US loans USD return
4.5%
UK REITS GBP return
9.6%
An increase/decrease of 1 per cent in the indices used would have caused a £12 million increase/decrease in the adjustment.
34.7 Actuarial assumptions for measuring liabilities
Principal actuarial assumptions
2024
2023
%
%
Discount rate
5.00
5.00
Inflation rate – RPI
3.20
3.25
Inflation rate – CPI
2.55
2.55
Future pension increases
1.95 – 3.00
1.90 – 2.95
a)	Discount rate
The discount rate for the Scheme is derived from the expected yields on high quality corporate bonds over the duration of the Group’s pension scheme and 
extrapolated in line with gilts with no theoretical growth assumptions. High quality corporate bonds are those for which at least one of the main ratings 
agencies considers to be at least AA (or equivalent).
b)	Inflation
The Government’s intention to amend the RPI calculation methodology to be aligned to that already in use for the calculation of the CPI (including housing) 
takes effect from 2030. As a result, the Group has assumed that RPI will be aligned with CPI post 2030, resulting in a single weighted average RPI-CPI gap of 
1.00% p.a. up to 2030 (2023: 0.70% p.a.).
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J Sainsbury plc Annual Report and Financial Statements 2024  187
34 Retirement benefit obligations continued
34.7 Actuarial assumptions for measuring liabilities continued
c)	 Mortality
The base mortality assumptions use the SAPS S2 and SAPS S3 tables for the Sainsbury’s and Argos sections, respectively, with adjustments to reflect the 
Scheme’s population. 
Following the completion of the 2021 triennial valuation and consideration of the previous three years of mortality experience both in the Scheme and the UK 
as a whole, the Company has decided to update the actuarial mortality base tables that determine the life expectancy assumptions to reflect a best-estimate 
adjustment derived from analysis carried out for the valuation. Future mortality improvements for the 2024 year-end are CMI 2022 projections with a 
long-term rate of improvement of 1.0 per cent p.a. Future mortality improvements for the 2023 year-end were CMI 2021 projections with a long-term rate of 
improvement of 1.25 per cent p.a. 
While COVID-19 had an impact on mortality in 2020, the impact on future mortality trends is currently unknown. All IAS 19 calculations use the CMI model, 
which measures potential changes to future mortality trends. The Group’s policy is to use the available version as at the year-end which is CMI 2022, which 
was released in June 2023. 
As a result of the significant change to mortality in the CMI 2020 model, the CMI modified the calibration process for CMI 2020 to allow choice on the 
weighting placed on an individual year’s data. For the Core version of CMI 2020, a weight of zero per cent was applied to 2020 data and weightings of 100 per 
cent for other years, so the potentially exceptional 2020 experience was ignored when modelling future improvements. This approach has been amended for 
CMI 2022, with zero per cent weighting applied to 2020 and 2021 data and 25% weighting applied to 2022 data, to reflect the view that the sustained and less 
volatile mortality experience provides greater evidence of a change to future mortality trends. 
A 10 per cent weighting above the core parameters has been applied, reflecting that mortality rates for 2022 were higher and for 2023 are expected to be 
higher than 2019, and recognising the uncertain outlook. From 2028, mortality improvements are in line with the CMI 2022 Core model. The impact of different 
weightings on the Scheme liabilities is included in the sensitivities section within this note.
Life expectancy at age 65 
2024
2023
 
Sainsbury’s 
section Main 
Scheme
Sainsbury’s 
section 
Executive 
Scheme
Argos 
section
Sainsbury’s 
section Main 
Scheme
Sainsbury’s
 section 
Executive 
Scheme
Argos 
section
 
Years
Years
Years
Years
Years
Years
Members aged 65 at balance sheet date
Male pensioner
18.9
22.2
19.7
19.5
22.7
20.3
Female pensioner
22.8
23.4
22.8
23.3
24.0
23.4
Members aged 45 at balance sheet date
Male pensioner
19.8
23.1
20.7
20.7
24.0
21.6
Female pensioner
23.9
24.6
24.0
24.9
25.5
24.8
d)	Sensitivities
The present value of the Scheme’s liabilities and the net financing charge are dependent on the discount rate. Other key assumptions are based on market 
conditions or estimates of future events, including mortality rates. The carrying value of the retirement benefit obligations is impacted by changes to any 
of the assumptions used.
The sensitivities are calculated using the same methodology used to calculate the retirement benefit obligation, by considering the impact for a given 
change in an assumption while holding all others constant, thus meaning that interdependencies between the assumptions have not been taken into 
account in the analysis. The sensitivities reflect the upper ends of a range of reasonably possible changes in principal assumptions.
Change in present value of funded obligations – Increase/(decrease) effect
Sainsbury’s
Argos
Total
 
£m
£m
£m
£m
£m
£m
Financial sensitivities
Discount rate 
+/- 0.1%
(73)
74
(13)
13
(86)
87
Discount rate
+/- 1.0%
(666)
819
(118)
149
(784)
968
Inflation rate 
+/- 0.1%
36
(44)
8
(12)
44
(56)
Inflation rate
+/- 1.0%
383
(396)
96
(92)
479
(488)
Inflation rate for future pension increases 
+/- 0.1%
17
(25)
4
(7)
21
(32)
Inflation rate for future pension increases
+/- 1.0%
177
(221)
47
(53)
224
(274)
Demographic sensitivities
Life expectancy 
+/- 1 year
170
(166)
24
(26)
194
(192)
Change 2020, 2021 and 2022 weighting parameters 
in CMI 2022
 -10% /+ 15%
41
(33)
6
(5)
47
(38)
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188  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
34 Retirement benefit obligations continued
34.7 Actuarial assumptions for measuring liabilities continued
e)	 Future benefit payments
Details of future committed payments are included in the Background section at the beginning of this note. Expected cash contributions for the next 
financial year are approximately £45 million.
The duration of the Scheme’s liabilities is around 15 years for the Sainsbury’s section and 17 years for the Argos section. 
Timing of benefit payments (undiscounted)
 
 2024
 2023
 
 £m
 £m
Within the next 12 months (next financial year) 
254
237
Between 2 and 5 years 
1,172
1,104
Between 6 and 15 years 
3,910
3,779
Between 16 and 25 years 
3,966
3,974
Beyond 25 years
5,106
5,345
14,408
14,439
35 Share-based payments
 
 2024
 2023
 
 £m
 £m
Share-based payment expense
89
59
The Group operates the following share schemes:
35.1 Savings-Related Share Option Scheme (Sharesave)
The Group operates a Savings-Related Share Option Scheme, which is open to all UK employees with more than three months’ continuous service. 
This is an approved HMRC scheme and was established in 1980. Under Sharesave, participants remaining in the Group’s employment at the end of the 
three-year (and historically also five-year) savings period are entitled to use their savings to purchase shares in the Company at a pre-stated exercise price. 
Employees leaving for certain reasons can use their savings to purchase shares within six months of their leaving.
 
2024
2023
Number of 
options
Weighted 
average
 exercise price
Number of
 options
Weighted
 average 
exercise price
 
million
pence
million
pence
Outstanding at beginning of financial year
59.4
177
58.3
186
Granted 
16.1
213
23.7
167
Lapsed/forfeited
(7.6)
179
(14.0)
206
Exercised
(8.8)
165
(8.6)
167
Outstanding at end of financial year
59.1
188
59.4
177
Exercisable at end of financial year
13.2
170
7.1
166
Exercisable Range
161 to 260
 161 to 260 
Weighted average share price at date of exercise
266
258
Weighted average remaining contractual life
2.1 years
1.9 years
Options granted during the year were valued using the Black-Scholes option pricing model. No performance conditions were included in the fair 
value calculations.
 
2024
2023
Share price at grant date 
300p
226p
Exercise price 
213p
167p
Expected volatility
25.2%
28.9%
Option life
3.2 years
3.2 years
Expected dividend yield 
4.9%
5.6%
Risk-free interest rate
5.3%
3.0%
Fair value per option
66p
57p
The expected volatility is based on the standard deviation of the Group’s share price for the period immediately prior to the date of grant of award, over the 
period identical to the vesting period of the award, adjusted for management’s view of future volatility of the share price.
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J Sainsbury plc Annual Report and Financial Statements 2024  189
35 Share-based payments continued
35.2 Long-Term Incentive Plan
Under the Long-Term Incentive Plan, shares are conditionally awarded to Senior Leaders of the Company. Awards are calculated as a percentage of the 
participants’ salaries and scaled according to grades. 
Performance is measured at the end of the three-year performance period. If the required performance conditions, which are financial and non-financial 
non-market conditions, have been met, the awards vest and the participants are able to exercise 100% of the awards received. For 2020 awards and prior, 
recipients were only able to receive 50% of their awards after three years and 50% of their awards after four years. From 2021 onwards, schemes vest and 
participants are able to exercise after three years. Awards will expire five years from the grant date. 
For Executive Directors, awards will normally be subject to a two-year holding period following the end of the three-year performance period. Awards will 
expire six years from the date of grant.
For awards granted in and before the year ended 4 March 2023, a core share award was granted which could grow by up to four times, dependent on the 
level of performance. For awards granted in the year to 2 March 2024, the maximum share award is allocated, and the award will vest between 0 per cent 
and 100 per cent based on performance against targets. Awards are structured as nil-cost. 
Dividends will accrue on the shares that vest in the form of additional shares, except for certain colleagues who are unable to receive dividend equivalents 
due to financial services regulations.
 
2024
2023
 
Million
Million
Outstanding at beginning of financial year
19.0
18.5
Conditionally awarded
21.4
9.7
Released to participants 
(9.4)
(7.4)
Lapsed
(1.7)
(1.8)
Outstanding at end of financial year
29.3
19.0
Weighted average remaining contractual life
3.1 years
0.9 years
Weighted average share price at date of exercise (release to participants)
281p
232p
No performance conditions were included in the fair value calculations. 
Options granted in the year
2024
2023
Share price at grant date 
273p
230p
Option life 
3 years
3 years
Fair value per option 
273p
230p
35.3 Nil-Cost Share Award
The nil-cost share schemes include Deferred Share Awards, Bonus Share Awards and other Conditional Awards. 
The last awards made under the Deferred Share Award plan were made in 2021. All awards outstanding in 2023 were released to participants in 2024.
Senior Leaders receive a percentage of their bonus award in shares. Before 2021, bonus awards had a three-year deferral period. However, awards granted 
from 2021 now have a deferral period of two years, except for certain colleagues who are subject to a deferral period due to financial services regulations. 
Other conditional awards relate to the retention and recruitment of Senior Leaders as part of the wider reward strategy. Awards vest, typically between one 
and three years, subject to participants remaining in employment at the vesting date. 
Dividends accrue on these shares and vest in the form of additional shares released at the end of the deferral period. 
 
2024
2023
 
Million
Million
Outstanding at beginning of financial year
28.1
22.9
Awarded
14.0
16.0
Released to participants in financial year
(14.0)
(7.6)
Lapsed
(1.0)
(3.3)
Outstanding at end of financial year
27.1
28.1
Weighted average remaining contractual life of share options outstanding
1.8 years
0.7 years
Weighted average share price for options exercised
262p
245p
36 Commitments 
 
2024
2023
 
£m
£m
Capital commitments contracted, but not provided for
140 
159
Leases that have been signed but not yet commenced
73 
101
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190  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
37 Contingent liabilities
The Group has a number of contingent liabilities in respect of historical lease guarantees, particularly in relation to the disposal of assets, which if the current 
tenant and their ultimate parents become insolvent, may expose the Group to a material liability; however, this liability decreases over time as the leases 
expire. The Group has considered a number of factors, including past history of default as well as the profitability and cash generation of the current 
leaseholders, and has concluded that the likelihood of pay-out is remote.
Along with other retailers, the Group is currently subject to claims from current and ex-employees in the Employment Tribunal for equal pay under the 
Equality Act 2010 and/or the Equal Pay Act 1970. There are currently circa 16,300 equal pay claims from circa 10,900 claimants and the Group believes that 
further claims may be served. The claimants are alleging that their work within Sainsbury’s stores is or was of equal value to that of colleagues working in 
Sainsbury’s distribution centres, and that differences in terms and conditions relating to pay are not objectively justifiable. The claimants are seeking the 
differential back pay based on the higher wages in distribution depots, and the equalisation of wages and terms and conditions on an ongoing basis. 
There are three stages in the tribunal procedure for equal value claims of this nature and the claimants will need to succeed in all three. The first stage is 
whether store claimants have the legal right to make the comparison with depot workers. Following European and Supreme Court decisions in other litigation, 
Sainsbury’s has conceded this point. The second stage is the lengthy process to determine whether any of the claimants’ roles are of equal value to their 
chosen comparators. In the event that any of the claimants succeed at the second stage, there will be a third stage comprising further hearings, in the 
following years, to consider Sainsbury’s material factor defences, relating to non-discriminatory reasons for any pay differential. Completion of these two 
stages is likely to take many years, which will involve hearings and appeals. It is not possible to predict a final date with any certainty. If the Group is 
unsuccessful at the end of the litigation the liability could be material but due to the complexity and multitudinous factual and legal uncertainties we are not 
in a position to predict an outcome, quantum or impact at this stage. There are substantial factual and legal defences to these claims and the Group intends 
to defend them vigorously.
Given that the outcome of the second and third stages in the litigation remains highly uncertain at this stage, the Group cannot make any assessment of the 
likelihood nor quantum of any outcome and accordingly, no provision has been recognised. 
38 Related party transactions
38.1 Key management personnel
The key management personnel of the Group comprise members of the J Sainsbury plc Board of Directors and the Operating Board. The key management 
personnel compensation is as follows:
 
2024
2023
 
£m
£m
Short-term employee benefits
15
15
Post-employment employee benefits
1
1
Share-based payments
8
6
 
24
22
Three key management personnel had credit card balances with Financial Services (2023: Five). These arose in the normal course of business and were 
immaterial to the Group and the individuals. One key management personnel held saving deposit accounts with Financial Services (2023: Two). These 
balances arose in the normal course of business and were immaterial to the Group and the individuals.
38.2 Joint ventures and associates
Transactions between the Group’s subsidiary undertakings, which are related parties, have been eliminated on consolidation and are accordingly not 
disclosed. Related party transactions, which are at arm’s length, and balances which the Group had with its joint ventures and associates, are as follows:
2024
2023
£m
£m
Dividends and distributions received
—
1
Rental expenses paid
(8)
(6)
Year-end balances arising from transactions with joint ventures and associates are as follows:
2024
2023
£m
£m
Other payables
(1)
(2)
38.3 Retirement benefit obligations
The Group has entered into an arrangement with the Pension Scheme Trustee as part of the funding plan for the actuarial deficit in the Scheme. Full details of 
this arrangement are set out in note 34 to these financial statements.
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J Sainsbury plc Annual Report and Financial Statements 2024  191
39 Related undertakings
All interests are in ordinary share capital, except where otherwise indicated. 
39.1 Wholly owned subsidiary undertakings
All subsidiaries have been consolidated and the Group holds a majority of the voting rights of the following 100%-owned undertakings:
Entity
Country of incorporation
Holding
Registered office address*
ARG Personal Loans Limited**
UK
Indirect
33 Holborn
Argos Business Solutions Limited
UK
Indirect
33 Holborn
Argos Card Transactions Limited
UK
Indirect
33 Holborn
Argos Distributors (Ireland) Limited
Ireland
Indirect
6th Floor, South Bank House
Argos Holdings Limited
UK
Indirect
33 Holborn
Argos Limited
UK
Indirect
33 Holborn
Argos (N.I.) Ltd
UK
Indirect
Forestside Shopping Centre
Argos Surbs Investments Limited
UK
Indirect
33 Holborn
Avenell Property Limited (formerly Avenell Property Plc)
UK
Indirect
33 Holborn
Barleygold Limited
UK
Indirect
50 Bedford Street
Bells Stores Limited
UK
Direct
33 Holborn
BLSSP (PHC 7) Limited
UK
Indirect
33 Holborn
Chad Valley Limited**
UK
Indirect
33 Holborn
Cliffrange Limited
UK
Indirect
33 Holborn
Coolidge Investments Limited
UK
Indirect
33 Holborn
Cornerford Limited
UK
Indirect
33 Holborn
Financial Recovery Services Limited
UK
Indirect
33 Holborn
First Stop Stores Limited
UK
Indirect
33 Holborn
Global (Guernsey) Limited
Guernsey
Indirect
PO Box 33, Dorey Court
Habitat Retail Limited
UK
Indirect
33 Holborn
Hobart Property Limited (formerly Hobart Property Plc)
UK
Indirect
33 Holborn
Holborn UK Investments Limited
UK
Direct
33 Holborn
Home Retail Group Limited
UK
Indirect
33 Holborn
Home Retail Group (Cyprus) Limited***
Cyprus
Indirect
5 Anastasios Leventis Street
Home Retail Group (Finance) LLP
UK
Indirect
33 Holborn
Home Retail Group (Guernsey) LP
Guernsey
Indirect
PO Box 33, Dorey Court
Home Retail Group (Jersey) Limited
Jersey
Indirect
44 Esplanade
Home Retail Group (UK) Limited
UK
Indirect
33 Holborn
Home Retail Group Card Services Limited
UK
Indirect
33 Holborn
Home Retail Group Holdings (Overseas) Limited
UK
Indirect
33 Holborn
Home Retail Group Insurance Services Limited
UK
Indirect
33 Holborn
Home Retail Group Nominees Limited
UK
Indirect
33 Holborn
Home Retail Group UK Service Company Limited
UK
Indirect
33 Holborn
Horndrift Limited
UK
Indirect
33 Holborn
J Sainsbury Common Investment Fund Limited
UK
Indirect
33 Holborn
J Sainsbury Distribution Limited
UK
Direct
33 Holborn
J Sainsbury Pension Scheme Trustees Limited
UK
Direct
33 Holborn
J Sainsbury Trustees Limited
UK
Indirect
33 Holborn
Jacksons Stores Limited
UK
Direct
33 Holborn
Jacksons Stores 2002 Limited
UK
Indirect
33 Holborn
JS Information Systems Limited
UK
Direct
33 Holborn
JS Insurance Limited
Isle of Man
Direct
Third Floor, St George's Court
JSD (London) Limited
UK
Indirect
33 Holborn
Jungle Online
UK
Indirect
33 Holborn
Jungle.com Limited
UK
Indirect
33 Holborn
Jungle.com Holdings Limited
UK
Indirect
33 Holborn
*	
See full address in note 39.5.
**	 An application has been made to strike off this company from the Companies Register.
***	 Currently in liquidation.
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192  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the consolidated financial statements continued
39 Related undertakings continued
39.1 Wholly owned subsidiary undertakings continued
Entity
Country of incorporation
Holding
Registered office address*
Nash Court (Kenton) Limited
UK
Indirect
33 Holborn
Nectar 360 Limited
UK
Indirect
33 Holborn
Nectar 360 Services LLP
UK
Indirect
33 Holborn
Nectar EMEA Limited
UK
Indirect
33 Holborn
Nectar Loyalty Holding Limited
UK
Direct
33 Holborn
Ramheath Properties Limited
UK
Direct
33 Holborn
Sainsbury Bridgeco Holdco Limited
UK
Direct
33 Holborn
Sainsbury Holdco A Limited
UK
Direct
33 Holborn
Sainsbury Holdco B Limited
UK
Direct
33 Holborn
Sainsbury Propco A Limited
UK
Indirect
33 Holborn
Sainsbury Propco B Limited
UK
Indirect
33 Holborn
Sainsbury Propco C Limited
UK
Direct
33 Holborn
Sainsbury Propco D Limited
UK
Direct
33 Holborn
Sainsbury Property Investments Limited
UK
Direct
33 Holborn
Sainsbury's Argos Asia Limited
Hong Kong
Indirect
Unit 904, 9/F, Tower 2
Sainsbury’s Argos Asia Commercial Limited
Hong Kong
Indirect
Unit 904, 9/F, Tower 2
Sainsbury’s Argos Asia Sourcing Limited
Hong Kong
Indirect
Unit 904, 9/F, Tower 2
Sainsbury's Argos Asia Technical Limited
Hong Kong
Indirect
Unit 904, 9/F, Tower 2
Sainsbury’s Argos Commercial Consulting (Shanghai) Limited
China
Indirect
26/F, Tower 1
Sainsbury's Bank plc
UK
Direct
33 Holborn
Sainsburys Corporate Director Limited
UK
Direct
33 Holborn
Sainsbury’s Corporate Healthcare Trustee Limited
UK
Indirect
33 Holborn
Sainsbury’s Corporate Secretary Limited
UK
Direct
33 Holborn
Sainsbury’s Group Holdings Limited
UK
Direct
33 Holborn
Sainsbury's Heather GP Limited
UK
Indirect
3 Lochside Avenue
Sainsbury's Intermediate Holdings Limited
UK
Direct
33 Holborn
Sainsbury's Manor GP Limited
UK
Direct
3 Lochside Avenue
Sainsbury's Manor Property Limited
UK
Direct
3 Lochside Avenue
Sainsburys (NI) Ltd
UK
Indirect
Forestside Shopping Centre
Sainsbury's Rose LP Limited
UK
Indirect
33 Holborn
Sainsbury’s SL Limited
UK
Indirect
33 Holborn
Sainsbury's Supermarkets Ltd
UK
Direct
33 Holborn
Sainsbury’s Thistle Scottish Limited Partnership
UK
Indirect
3 Lochside Avenue
Sainsbury’s Tyne Property Holdings Limited
UK
Indirect
33 Holborn
Smartcharge Limited
UK
Direct
33 Holborn
Software Warehouse Holdings Limited
UK
Indirect
33 Holborn
Stamford House Investments Limited
UK
Direct
33 Holborn
Stamford Properties One Limited
UK
Direct
33 Holborn
Stamford Properties Three Limited
UK
Direct
33 Holborn
Stamford Properties Two Limited
UK
Direct
33 Holborn
Stanhope Finance Limited
UK
Indirect
33 Holborn
Town Centre Retail (Bicester) Limited
UK
Indirect
33 Holborn
*	
See full addresses in note 39.5.	
39.2 Associated undertakings
Entity
Footnote Country of incorporation
Interest
Holding
Registered office address a)
BL Sainsbury Superstores Limited
b)
UK
50%
Indirect
45 Gresham Street
British Land Superstores (Non-Securitised)
b)
UK
50%
Indirect
45 Gresham Street
Harvest 2 GP Limited
UK
50%
Indirect
100 Victoria Street
Harvest 2 Limited Partnership
UK
50%
Indirect
100 Victoria Street
Harvest 2 Selly Oak Limited
UK
50%
Indirect
100 Victoria Street
Harvest Development Management Limited
UK
50%
Indirect
100 Victoria Street
Harvest GP Limited
UK
50%
Indirect
100 Victoria Street
Hedge End Park Limited
UK
50%
Direct
33 Holborn
Pencilscreen Limited
b)
UK
50%
Indirect
45 Gresham Street
a)	 Full addresses in note 39.5.
b)	 In liquidation
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J Sainsbury plc Annual Report and Financial Statements 2024  193
39 Related undertakings continued
39.3 Overseas branches
Entity
Country of incorporation
Holding
Registered office address a)
Sainsbury’s Argos Asia Limited – Bangladesh Liaison Office
Bangladesh
Indirect
Level 10, Simpletree Anarkali
Sainsbury’s Argos Asia Limited – India Branch Office
India
Indirect
Unit No. 1, 1st Floor, Ambience 
Corporate Tower II
a)	 Full addresses in note 39.5.
39.4 Subsidiary undertakings exempt from audit
The following subsidiaries are exempt from the requirements of the Companies Act 2006 relating to the audit of individual accounts by virtue of section 
479A of the Act:
Entity
Company registered number
Argos Holdings Limited
5860214
Argos Surbs Investments Limited
5716474
Avenell Property Limited
03817411
BLSSP (PCH 7) Limited
04104076
Cliffrange Limited
1967242
Coolidge Investments Limited
07697101
Cornerford Limited
03871316
Habitat Retail Limited
7445750
Hobart Property Limited
03978071
Home Retail Group Limited
5863533
Home Retail Group Holdings (Overseas) Limited
0872776
Home Retail Group (UK) Limited
5844516
Horndrift Limited
03871243
Nash Court (Kenton) Limited
3447714
Nectar EMEA Limited
05821446
Nectar Loyalty Holding Limited
06436907
Ramheath Properties Limited
01762921
Sainsbury Propco A Limited
05644620
Sainsbury Propco C Limited
05676364
Sainsbury Propco D Limited
05676370
Sainsbury’s Bridgeco HoldCo Limited
5644629
Sainsbury’s Group Holdings Limited
11833110
Sainsbury’s Intermediate Holdings Limited
10125892
Sainsbury’s Rose LP Limited
11837174
Sainsbury’s Manor GP Limited
SC453278
Sainsbury Property Investments Limited
02184043
Stamford Properties Three Limited
03896030
Stanhope Finance Limited
4288193
Town Centre Retail (Bicester) Limited
5564905
 Sainsbury's Manor Property Limited
SC453263
39.5 Full registered office addresses
Address
Full address
3 Lochside Avenue
3 Lochside Avenue, Edinburgh, EH12 9DJ, United Kingdom
5 Anastasios Leventis Street
5 Anastasios Leventis Street, Leventis Gallery Tower, 8th Floor, 1097 Nicosia, Cyprus
Unit 904, 9/F, Tower 2
Unit 904, 9/F, Tower 2, The Quayside, 77 Hoi Bun Road, Kwun Tong, Kowloon, Hong Kong
26/F, Tower 1
26/F, Tower 1, Kerry Everbright City Phase III-Enterprise Centre, No.128, West Tian Mu Road, Shanghai 
200070, People’s Republic of China
33 Holborn
33 Holborn, London, EC1N 2HT, United Kingdom
44 Esplanade
44 Esplanade, St Helier, Jersey, JE4 9WG, Channel Islands
50 Bedford Street
50 Bedford Street, Belfast, BT2 7FN, United Kingdom
100 Victoria Street
100 Victoria Street, London, SW1E 5JL, United Kingdom
Forestside Shopping Centre
Forestside Shopping Centre, Upper Galwally, Belfast, BT8 6FX, United Kingdom
Level 10, Simpletree Anarkali
Level 10, Simpletree Anarkali, 89 Gulshan Avenue Plot 03, Block – CWS(A), Dhaka – 1212 Bangladesh
PO Box 33 Dorey Court
PO Box 33, Dorey Court, Admiral Park, St Peter Port, Guernsey, GY1 4AT
Third Floor, St George’s Court
Third Floor, St George’s Court, Upper Church Street, Douglas, IM1 1EE, Isle of Man
6th Floor, South Bank House
6th Floor, South Bank House, Barrow Street, Dublin 4, D04 TR29, Ireland
Unit No. 1, 1st Floor, Ambience Corporate Tower II
Unit No. 1, 1st Floor, Ambience Corporate Tower II, Ambience Island, NH-8, Gurgaon – 122011, Haryana, India
45 Gresham Street
45 Gresham Street, Gresham Street, London, EC2V 7BG
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194  J Sainsbury plc Annual Report and Financial Statements 2024
Company balance sheet
 
 
2 March 2024
4 March 2023
 
Note
£m
£m
Non-current assets
Investments in subsidiaries, joint ventures and associates
C2
7,296
7,678
Trade and other receivables
C3
847
72
Derivative financial assets
1
—
 
 
8,144
7,750
Current assets
Trade and other receivables
C3
70
1,192
Derivative financial assets
2
2
Cash and cash equivalents
510
299
 
 
582
1,493
Total assets
 
8,726
9,243
Current liabilities
Trade and other payables
C4
(1,295)
(2,919)
Borrowings
C6
(5)
—
Derivative financial liabilities
—
(2)
Taxes payable
(10)
(3)
 
 
(1,310)
(2,924)
Net current liabilities
 
(728)
(1,431)
Non-current liabilities
Borrowings
C6
(572)
—
Derivative financial liabilities
(1)
—
Deferred income tax liability
C5
(19)
(16)
Provisions
(1)
(1)
 
 
(593)
(17)
Total liabilities
 
(1,903)
(2,941)
Net assets
6,823
6,302
Equity
Called up share capital
C7
678
672
Share premium
1,430
1,418
Merger reserve
568
568
Capital redemption and other reserves
C7
681
682
Retained earnings
3,466
2,962
Total equity
 
6,823
6,302
The profit after tax for the Company for the financial year was £725 million (2023: profit after tax of £152 million). The notes on pages 196 to 198 form an 
integral part of these financial statements.
The financial statements were approved by the Board of Directors on 24 April 2024, and are signed on its behalf by:
Simon Roberts	
	
Bláthnaid Bergin
Chief Executive	
	
Chief Financial Officer
Company registered number: 00185647
 
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J Sainsbury plc Annual Report and Financial Statements 2024  195
Company statement of changes in equity
 
 
Called up
 share capital
Share 
premium
 account
Merger 
reserve
Capital
 redemption
 and other
reserve
Retained
 earnings
Total 
equity 
Note
£m
£m
£m
£m
£m
£m
At 5 March 2023
 
672
1,418
568
682
2,962
6,302
Profit for the year
—
—
—
—
725
725
Tax relating to other comprehensive income
—
—
—
(1)
—
(1)
Total comprehensive income 
 
—
—
—
(1)
725
724
Transactions with owners:
 
Dividends
—
—
—
—
(306)
(306)
Allotted in respect of share option schemes
C7
6
12
—
—
85
103
At 2 March 2024
 
678
1,430
568
681
3,466
6,823
At 6 March 2022
 
668
1,406
568
682
3,071
6,395
Profit for the year
—
—
—
—
152
152
Total comprehensive income 
 
—
—
—
—
152
152
Transactions with owners:
 
Dividends
—
—
—
—
(319)
(319)
Allotted in respect of share option schemes
C7
4
12
—
—
58
74
At 4 March 2023
 
672
1,418
568
682
2,962
6,302
The notes on pages 196 to 198 form an integral part of these financial statements.
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196  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the Company financial statements
C1 Basis of preparation and accounting policies
C1.1 Basis of preparation
The Company financial statements are prepared in accordance with United Kingdom Generally Accepted Accounting Practice. The financial year comprises 
the 52 weeks to 2 March 2024 (2023: 52 weeks to 4 March 2023).
The financial statements have been prepared on the going concern basis under the historical cost convention, except for derivative financial instruments and 
financial assets at fair value through other comprehensive income that have been measured at fair value.
The Company meets the definition of a qualifying entity under FRS 100 issued by the Financial Reporting Council. Accordingly, the financial statements have 
been prepared in accordance with FRS 101 ‘Reduced Disclosure Framework’ and in accordance with the Companies Act 2006 as applicable to companies using 
FRS 101. As permitted by FRS 101, the Company has taken advantage of the disclosure exemptions available under that standard in relation to:
•	 a cash flow statement
•	 certain related-party transactions including those with subsidiaries
•	 the effects of new but not yet effective accounting standards
•	 certain disclosures in respect of financial instruments 
•	 share-based payments 
•	 certain comparatives as otherwise required by IFRS 
•	 disclosures related to capital management
The basis for the above exemptions is because equivalent disclosures are included in the consolidated financial statements in which the entity 
is consolidated.
C1.2 Accounting policies
Material accounting policies, which have been applied consistently, are the same as those set out in note 3 to the consolidated financial statements except as 
noted below in respect of those which are Company specific. 
a)	Investments in subsidiaries, joint ventures and associates
Investments in subsidiaries, joint ventures and associates are carried at cost less any impairment loss in the financial statements of the Company. 
At each financial year, the Company assesses the carrying amounts of its investments to determine whether there is any indication of impairment. Where 
such an indication exists, the Company makes an estimate of the recoverable amount based on the greater of the fair value less cost to dispose, or value-in-
use calculations. Where a value-in-use calculation is used, discounted cash flows have been derived from Board-approved cash flow projections for four years 
and then extrapolated into perpetuity.
If the recoverable amount of the investment is less than its carrying amount, the investment is written down to its recoverable amount. Any impairment loss 
is immediately recognised in the income statement.
b) Trade and other receivables
Receivables are recognised initially at fair value, and subsequently at amortised cost using the effective interest rate method, less provision for impairment.
Receivable balances with other Group entities are reviewed for potential impairment based on the ability of the counterparty to meet its obligations. This is 
assessed by considering the net asset position of the entity and whether the amounts owed to the Company are covered. Where this is not the case, the 
estimated future cashflows of the counterparty are considered in line with the methodology detailed in note C2.
c)	 Trade and other payables
Payables are recognised initially at fair value, and subsequently at amortised cost using the effective interest rate method.
d)	Deferred tax
Deferred tax is provided on temporary differences associated with investments in subsidiaries, branches and joint ventures except where the Company 
is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the 
foreseeable future.
e)	 Share-based payments
The grant by the Company of options over its equity instruments to the employees of subsidiary undertakings in the Group is treated as a capital 
contribution. The fair value of employee services received, measured by reference to the grant date fair value, is recognised over the vesting period as 
an increase to investment in subsidiary undertakings, with a corresponding credit to equity.
C1.3 Significant estimate
Assessment of impairment of investments in subsidiaries
In carrying out value-in-use calculations to assess impairment, these require estimation relating to the appropriate discount factors and long-term growth as 
well as short and medium-term business plans. Management draws upon experience as well as external resources in making these judgements. 
A sensitivity analysis is also performed to determine if there is sufficient headroom such that a reasonably possible change to key assumptions would not 
result in any impairment.
In respect of Sainsbury’s Bank plc, the announcement that financial services products to be offered in the future will be provided by dedicated financial 
services providers through a distributed model and over time this will result in a phased withdrawal from the core Banking business is an indicator of 
impairment. A conclusion has been reached that the Company’s investment is impaired and significant estimates have been made by management of future 
profitability and the associated costs to undertake the restructuring. Further information is set out in note C2.
C1.4 Income statement
The Directors have taken advantage of the exemption available under Section 408 of the Companies Act 2006 and not presented an income statement nor a 
statement of comprehensive income for the Company alone. 
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J Sainsbury plc Annual Report and Financial Statements 2024  197
C2 Investments in subsidiaries, joint ventures and associates
 
2024
2023
 
£m
£m
Subsidiaries
 
 
At the beginning of the financial year
7,677
7,667
Additions
88
60
Impairment
(470)
—
Other
a)
—
(50)
At the end of the financial year
7,295
7,677
Joint ventures and associates
1
1
7,296
7,678
a)	 In the prior year, other movements relates to a dividend of £50 million paid by Sainsbury’s Bank plc to J Sainsbury plc.
Rates used in value-in-use calculations
 
2024
2023
Pre-tax discount rate 
9%–15%
 9%–15%
Long-term growth rate – weighted average used
2%
2%
The Company considers significant restructuring within its subsidiaries as well as the relationship between its market capitalisation and the carrying value of 
its investments, when reviewing for indicators of impairment. 
Owing to the restructuring of the Group’s financial services offering which is underway and described further in note 5 to the consolidated financial 
statements, this has been identified as an indicator of impairment of the Company’s investment in Sainsbury’s Bank plc. In addition, at 2 March 2024, the 
market capitalisation of the Group was significantly below the carrying value of the net assets of the Company, which primarily consists of investments in 
subsidiaries, indicating potential impairment. Accordingly, an impairment test over the investment in other subsidiaries has also been performed. 
Where value-in-use calculations have been used to estimate the recoverable amounts of the investments, sensitivity analysis has been performed. Other 
than for Sainsbury’s Bank plc which is described further below, the analysis indicates that there is sufficient headroom such that a reasonably possible 
change to key assumptions would not result in any impairment in any of the Company’s investments in subsidiaries.
In respect of Sainsbury’s Bank plc, value-in-use has been derived from the Board-approved cash flow projections for four years, together with estimated 
restructuring charges over that period, with an assumed growth rate of up to 2% beyond the four-year forecast period, depending on product line, with a 
probability weighted assessment of differing outcomes in respect of how the restructuring will be undertaken. The probability weighting was applied to cash 
flow projections which assume two scenarios, one comprising a sale of certain portfolios and the other a run down of certain portfolios over time. The pre-tax 
discount rate used of 14.7 per cent was derived from the Bank’s weighted average cost of capital. Following the assessment, the Company has determined 
that the recoverable amount of its investment in Sainsbury’s Bank plc is £350 million and as a result has recognised an impairment charge of £470 million. 
The calculation is sensitive to management’s forecast of future performance over the restructuring period, deemed to be up to four years, including 
non-underlying costs expected to be incurred, as well as the discount rate applied to these cash flows.
Sensitivity
2024
 
(Increase)/
decrease in
 impairment
 charge 
 
£m
Discount rate
2% 
(36)
Discount rate
-2%
45
Estimate of forecast cashflows
10%
8
Estimate of forecast cashflows
-10%
(8)
In accordance with IAS 36, this impairment may be subject to reversal if in future periods there is a change in the estimates used to determine the 
investment’s recoverable amount.
C3 Trade and other receivables
2024
2023
 
Non-current
Current
Total
Non-current
Current
Total
 
£m
£m
£m
£m
£m
£m
Amounts owed by Group companies
847 
70
917
68
1,191
1,259
Prepayments and accrued income
— 
—
—
4
1
5
 
847 
70
917
72
1,192
1,264
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198  J Sainsbury plc Annual Report and Financial Statements 2024
Notes to the Company financial statements continued
C4 Trade and other payables
2024
2023
 
Non-current
Current
Total
Non-current
Current
Total
 
£m
£m
£m
£m
£m
£m
Amounts owed to Group entities
— 
1,292
1,292
—
2,916
2,916
Other payables
— 
3
3
—
3
3
 
— 
1,295
1,295
—
2,919
2,919
C5 Taxation
Deferred income tax liability 
Capital 
losses
Rolled over 
capital gains
Total
£m
£m
£m
At 5 March 2023
16
(32)
(16)
Rate change adjustment to income statement
(3)
—
(3)
At 2 March 2024
13
(32)
(19)
At 4 March 2023 and 5 March 2022
16
(32)
(16)
C6 Borrowings
2024
2023
 
Current
Non-current
Total
Current
Non-current
Total
 
£m
£m
£m
£m
£m
£m
Term loan due 2026
6
575
581
—
—
—
Transaction costs
(1)
(3)
(4)
—
—
—
 
5
572
577
—
—
—
Refer to note 33 of the Group financial statements for further detail.
C7 Share capital and reserves
C7.1 Share capital
 
 
2024
million
2023
million
2024
£m
2023
£m
Called up share capital
Allotted and fully paid ordinary shares 28 4/7p
2,371
2,352 
678
672 
Movements relate to allotments in respect of share option schemes as set out in note 26 to the Group financial statements.
C7.2 Capital redemption and other reserves
 
 
Other 
reserves
£m
Capital
     redemption  
   reserve
£m
Total capital 
redemption 
and other
reserves
£m
At 5 March 2023
2
680
682
Tax relating to other comprehensive income
(1)
—
(1)
At 2 March 2024
1
680
681
The other reserve represents the fair value gains and losses on the financial assets at fair value through other comprehensive income. 
The capital redemption reserve arose through a return of share capital resulting in the redemption and cancellation of shares, by way of a B share scheme, 
approved at an Extraordinary General Meeting on 12 July 2004. The final redemption date for B shares was 18 July 2007 with all transactions completed in 2007.
C8 Contingent liabilities
Through the normal course of business, the Company has issued guarantees covering various commitments of its subsidiaries. The Company has also 
provided a guarantee to the Bank of England in respect of any borrowings by Sainsbury’s Bank plc under the terms of the Sterling Monetary Framework. 
No liability has been recognised in the Company’s accounts for this guarantee as it is considered remote that the guarantee will be called on. Note 39.4 
of the Group financial statements sets out details on subsidiary undertakings exempt from audit.
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  199
Alternative performance measures (APMs) 
In the reporting of financial information, the Directors use various APMs which they believe provide additional useful information for understanding the 
financial performance and financial health of the Group. These APMs should be considered in addition to, and are not intended to be a substitute for, IFRS 
measurements. As they are not defined by International Financial Reporting Standards, they may not be directly comparable with other companies who 
use similar measures. 
All of the following APMs relate to the current financial year’s results and comparative financial year where provided. 
A1 Income statement measures
A1.1 Revenue
a)	Retail like-for-like sales (Closest IFRS equivalent: None)
Definition and purpose
Year-on-year growth in sales including VAT, excluding Fuel and Financial Services, for stores that have been open for more than one year. The relocation 
of Argos stores into Sainsbury’s supermarkets are classified as new space, while the host supermarket is classified as like-for-like. 
The measure is used widely in the retail sector.
Reconciliation
 
2024
2023
Retail like-for-like (exc. Fuel, inc. VAT)
7.5%
2.6%
Underlying net new space impact
(0.7)%
(0.6)%
Retail sales growth (exc. Fuel, inc. VAT)
6.8%
2.0%
Fuel impact
(3.6)%
3.2%
Total retail sales growth (inc. Fuel, inc. VAT)
3.2%
5.2%
VAT impact
0.4%
(0.1)%
Total retail sales growth
3.6%
5.1%
A1.2 Profit
a)	Retail underlying operating profit and margin (Closest IFRS equivalent: Profit before tax)
Definition and purpose
Profit before interest and tax for the retail segment excluding non-underlying items. 
This is the lowest level at which the retail segment can be viewed from a management perspective, with finance costs managed for the Group as a whole.
Reconciliation
 
2024
2023
 
Note
£m
£m
Retail underlying operating profit
7.1
966
926
Retail sales 
6
32,084
30,960
Retail underlying operating margin
3.01%
2.99%
b)	Underlying profit before tax (Closest IFRS equivalent: Profit before tax)
Definition and purpose
Profit before tax excluding non-underlying items.
Provides shareholders with additional insight into the year-on-year performance.
Reconciliation
Face of the income statement.
Non-underlying items as set out in note 5 to the financial statements.
c)	 Underlying basic and diluted earnings per share (Closest IFRS equivalent: Basic and diluted earnings per share)
Definition and purpose
Earnings per share using underlying profit as described above. 
A key measure to evaluate the performance of the business and returns generated for investors.
Reconciliation
Note 12 to the financial statements.
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200  J Sainsbury plc Annual Report and Financial Statements 2024
Alternative performance measures (APMs) continued
A1 Income statement measures continued
A1.2 Profit continued
d)	Retail underlying EBITDA (Closest IFRS equivalent: None)
Definition and purpose
Retail underlying operating profit as above, before underlying depreciation, and amortisation.
Used to review the retail segment’s profit generation and the sustainability of ongoing capital reinvestment and finance costs.
Reconciliation
 
2024
2023
 
Note
£m
£m
Retail underlying operating profit
7.1
966
926
Add: Retail underlying depreciation and amortisation
A2.1
1,112
1,134
Retail underlying EBITDA
2,078
2,060
Retail sales 
6
32,084
30,960
Retail underlying EBITDA margin
6.48%
6.65%
e)	 Underlying net finance costs (Closest IFRS equivalent: Finance income less finance costs)
Definition and purpose
Net finance costs before any non-underlying items that are recognised within finance income / expenses.
Provides shareholders with additional insight into the underlying net finance costs.
Reconciliation
Note 10 to the financial statements.
f)	 Underlying tax rate (Closest IFRS equivalent: Effective tax rate)
Definition and purpose
Tax on underlying items, divided by underlying profit before tax.
Provides an indication of the tax rate across the Group before the impact of non-underlying items.
Reconciliation
Non-underlying tax items as set out in note 5 to the financial statements.
A2 Cash flows and borrowings
A2.1 Retail cash flows (Closest IFRS equivalent: Group cash flows)
Definition and purpose
Retail cash flows identified as a separate component of Group cash flows.
Retail free cash flow: Net cash generated from retail operations, after cash capital expenditure and including payments of lease obligations, cash flows from 
joint ventures and associates and Sainsbury’s Bank capital injections. This measures cash generation, working capital efficiency and capital expenditure of 
the retail business.
Other retail cash flows: Individual cash flow line items segregated from Group cash flows to allow individual Retail cash flows to be identified. This enables 
management to assess the cash generated from its core retail operations, and to assess core retail capital expenditure in the financial year in order to review 
the strategic business performance.
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J Sainsbury plc Annual Report and Financial Statements 2024  201
A2 Cash flows and borrowings continued
A2.1 Retail cash flows (Closest IFRS equivalent: Group cash flows) continued
Reconciliation
 
2024
2023
 
 
Retail
Financial 
Services
Group
Retail
Financial
 Services
Group
Note 
£m
£m
£m
£m
£m
£m
Profit before tax
483
(206)
277
284
43
327
Net finance costs 
255
—
255
235
—
235
Operating profit/(loss)
 
738
(206)
532
519
43
562
Depreciation and amortisation 
 – Underlying 
 
1,112
32
1,144
1,134
33
1,167
 – Non-underlying
 
34
—
34
41
—
41
 
 
1,146
32
1,178
1,175
33
1,208
Net impairment charge on non-financial assets 
 
23
212
235
315
— 
315
(Profit)/loss on sale of non-current assets 
and early termination of leases 
 – Underlying 
b) 
(5)
—
(5)
(5)
— 
(5)
 – Non-underlying
 
(11)
14
3
(10)
—
(10)
 
 
 
(16)
14
(2)
(15)
—
(15)
Non-underlying fair value movements 
 
 
46
—
46
29
— 
29
Share-based payments expense 
 
b) 
83
6
89
54
5
59
Defined benefit scheme expense/(income)
 
 
7
—
7
(2)
— 
(2)
Cash contributions to defined benefit scheme 
 
(44)
—
(44)
(44)
— 
(44)
Operating cash flows before changes in working capital 
 
1,983
58
2,041
2,031
81
2,112
Movements in working capital 
 – Underlying 
 
262
(20)
242
159
307
466
 
 – Non-underlying
 
57
22
79
11
—
11
 
 
 
319
2
321
170
307
477
Cash generated from operations 
 
a)
2,302
60
2,362
2,201
388
2,589
Interest paid
 
a)
(323)
(13)
(336)
(307)
(9)
(316)
Corporation tax paid
 
a)
(58)
(3)
(61)
(99)
(4)
(103)
Net cash generated from operating activities
 
1,921
44
1,965
1,795
375
2,170
Cash flows from investing activities
 
 
 
 
 
 
 
Purchase of property, plant and equipment  – Additions
a)
(649)
(1)
(650)
(523)
(2)
(525)
 – Acquisitions
c)
(731)
—
(731)
—
—
—
Purchase of intangible assets
 
a)
(165)
(13)
(178)
(194)
(19)
(213)
Capital expenditure
 
 
(1,545)
(14)
(1,559)
(717)
(21)
(738)
Initial direct costs on new leases
 
a)
(6)
—
(6)
(16)
— 
(16)
Proceeds from disposal of property, plant 
and equipment
 – Core disposals
a)
16
—
16
29
— 
29
 – Acquisitions 
related
c)
61
—
61
—
—
—
Proceeds on disposal of amounts due from Financial Services 
Customers
—
446
446
—
—
—
Dividends and distributions received/(paid)  
a)
—
—
—
51
(50)
1
Interest received
 
a)
27
—
27
15
—
15
Net cash (used in)/generated from investing activities
 
(1,447)
432
(1,015)
(638)
(71)
(709)
Cash flows from financing activities
 
 
 
 
 
 
 
 
Proceeds from issuance of ordinary shares
 
 
15
—
15
13
— 
13
Purchase of own shares
(18)
—
(18)
(45)
— 
(45)
Share related transactions
(3)
—
(3)
(32)
— 
(32)
Proceeds from borrowings
575
—
575
—
—
—
Repayment of borrowings 
 
 
(41)
—
(41)
(40)
(55)
(95)
Net drawdown/(repayment) of borrowings
534
—
534
(40)
(55)
(95)
Capital repayment of lease obligations
 
a)
(505)
(2)
(507)
(512)
(2)
(514)
Dividends paid on ordinary shares 
 
 
(306)
—
(306)
(319)
— 
(319)
Net cash used in financing activities 
 
 
(280)
(2)
(282)
(903)
(57)
(960)
Net increase in cash and cash equivalents 
 
194
474
668
254
247
501
Capital expenditure
 
 
(1,545)
 
 
(717)
 
 
Less amounts paid for asset acquisition (note 2.6)
 
731
 
 
—
 
 
Core Retail capital expenditure
 
 
(814)
 
 
(717)
 
 
Items in the retail cash flow marked a) to c) reconcile to the summary cash flow statement in the financial review as outlined in note A2.2.
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202  J Sainsbury plc Annual Report and Financial Statements 2024
Alternative performance measures (APMs) continued
A2 Cash flows and borrowings continued
A2.1 Retail cash flows (Closest IFRS equivalent: Group cash flows) continued
Reconciliation continued
As set out in the Group cash flow statement the Group now classifies Interest received within Cash flows from investing activities whereby the previous 
treatment was within Cash flows from operations. 2023 amounts have therefore been re-presented whereby Retail Cash generated from operations and Retail 
Cash flows from investing activities were previously £2,216 million and £(653) million respectively. There has been no impact on cash flows within the 
Financial Services segment.
A2.2 Underlying retail cash flow movements (Closest IFRS equivalent: None)
Definition and purpose
Identifies cash movements in respect of Retail non-underlying items and also sets out a breakdown of items included in the summary cash flow statement 
set out in the Financial Review.
Reconciliation
 
2024
2023
 
Note
£m
£m
Cash contribution to defined benefit scheme
A2.1 
(44)
(44)
Non-underlying cash movements:
Financial services model
(5)
—
Sainsbury's structural integration
(67)
(50)
Legal disputes income
—
30
ATM business rates reimbursement 
—
3
Property-related transactions 
—
(6)
Operating cash flows 
 
(72)
(23)
Effect on Retail cash generated from operations
 
(116)
(67)
Sum of items marked a), b), and c) in note A2.1 as they appear in the financial review
 
2024
2023
 
Reference
£m
£m
Retail free cash flow
a)
639
645
Share based payments and other
b)
78
49
Net consideration paid for Highbury and Dragon property transaction
c)
(670)
—
A3 Borrowings
A3.1 Net debt (Closest IFRS equivalent: Borrowings, cash, derivatives, financial assets at FVTOCI, lease liabilities)
Definition and purpose
Net debt includes the capital injections into Sainsbury’s Bank, but excludes the net debt of Sainsbury’s Bank and its subsidiaries.Financial Services’ net debt 
balances are excluded because they are required as part of the business as usual operations of a bank, as opposed to specific forms of financing for the 
Group. Derivatives exclude those not used to hedge borrowings, and borrowings exclude bank overdrafts as they are disclosed separately. Hence net debt 
is represented as Retail net debt.
This metric shows the liquidity and indebtedness of the Group and whether the Group can cover its debt commitments.
Reconciliation
Note 32 to the financial statements. 
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J Sainsbury plc Annual Report and Financial Statements 2024  203
A3 Borrowings continued
A3.2 Net debt/underlying EBITDA (Closest IFRS equivalent: None)
Definition and purpose
Net debt divided by Group underlying EBITDA.
Helps management measure the ratio of the business’s debt to operational cash flow.
Reconciliation
 
2024
2023
 
Note
£m
£m
Net debt
32
5,554 
6,344
Group underlying EBITDA
A4.2
2,139 
2,139
Net debt/underlying EBITDA
2.6x
3.0x
Group underlying EBITDA is reconciled within the fixed charge cover analysis in note A4.2.
A4 Other measures
A4.1 Return on capital employed (Closest IFRS equivalent: None)
Definition and purpose
Return divided by average capital employed.
Return is defined as 52 week rolling underlying profit before interest and tax.
Capital employed is defined as Group net assets excluding pension surplus, less net debt. The average is calculated on a 14-point basis which uses the 
average of 14 data points.
Represents the total capital that the Group has utilised in order to generate profits. Management use this to assess the performance of the business.
Reconciliation
Net debt as set out in note 32. 
 
2024
2023
 
Note
£m
£m
Return (Group underlying operating profit)
7.1
995
972
£m
£m
Group net assets
Balance sheet
6,868
7,253
Less: Pension surplus 
Balance sheet
(690)
(989)
Deferred tax on pension surplus
11.3
244
330
Less: Net debt
32
5,554
6,344
Effect of in-year averaging
42
(101)
Capital employed
12,018
12,837
Return on capital employed
8.3%
7.6%
A4.2 Fixed charge cover (Closest IFRS equivalent: None)
Definition and purpose
Group underlying EBITDA divided by rent (representing capital and interest repayments on leases) and underlying net finance costs, where interest on 
perpetual securities is treated as an underlying finance cost. All items are calculated on a 52 week rolling basis.
This helps assess the Group’s ability to satisfy fixed financing expenses from performance of the business.
Reconciliation
 
2024
2023
 
Note
£m
£m
Group underlying operating profit
7.1
995
972
Add: Group underlying depreciation and amortisation expense
A2.1
1,144
1,167
Group underlying EBITDA
 
2,139
2,139
Capital repayment of lease obligations 
A2.1
(507)
(514)
Underlying finance income
10
30
18
Underlying finance costs
10
(324)
(300)
Fixed charges
 
(801)
(796)
Fixed charge cover
 
2.7x
2.7x
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204  J Sainsbury plc Annual Report and Financial Statements 2024
Additional shareholder information
Financial calendar
Ex-dividend date of final dividend
6 June 2024
Record date of final dividend
7 June 2024
Q1 trading statement
2 July 2024
Annual General Meeting
4 July 2024
Payment date of final dividend
12 July 2024
Interim (half-year) results announcement
7 November 2024
Q3 trading statement
January 2025a)
Preliminary (full-year) results announcement
April 2025a)
a) Provisional dates
Shareholders
Shareholder information as at 2 March 2024.	
2024
2023
Number of shareholders
96,196
100,490
Number of shares in issue
2,370,612,927
2,352,338,052
Annual General Meeting (AGM)
The AGM will be held at 33 Holborn, London, EC1N 2HT at 11.00am on 
Thursday, 4 July 2024 with facilities to attend virtually. The Notice of 
Meeting and proxy card for the meeting are enclosed with this report and 
further details will be available at www.about.sainsburys.co.uk.
Registrars
For information about the AGM, shareholdings and dividends, or to report 
changes to personal details, shareholders should contact: Equiniti
Aspect House 
Spencer Road Lancing BN99 6DA 
Telephone: 0333 207 6557* (from UK) or +44 (0) 333 207 6557* (outside UK)
*	
Lines are open 8.30am to 5.30pm (UK time), Monday to Friday (excluding public holidays 
in England and Wales).
Shareholders with speech or hearing difficulties can also contact 
Equiniti using Relay UK. More information can be found by visiting  
www.relayuk.bt.com. Please remember to tell Equiniti if you change 
your residential address or bank details, or if there is any other change 
to your account information.
You can view and manage your shareholding online at www.shareview.co.uk. 
You will require your 11-digit Shareholder Reference Number to log in; this 
can be found on your share certificate and dividend confirmation.
Dividends
To receive dividends and any other money payable to you in connection with 
your J Sainsbury plc ordinary shares, you will need to provide your bank or 
building society account details. Payments will be made directly to your 
nominated account by direct credit. Please visit www.shareview.co.uk 
for further details.
Dividend Reinvestment Plan (DRIP)
Sainsbury’s offers a DRIP, which is a simple way to buy additional 
Sainsbury’s shares. Shareholders can reinvest their cash dividends in the 
Company’s shares bought in the market through a specially arranged share 
dealing service. No new shares are allotted under this DRIP and approximately 
22,000 shareholders participate in it. Full details of the DRIP and its charges, 
together with mandate forms, are available from Equiniti. Alternatively, you 
can elect to join the DRIP by registering at www.shareview.co.uk.
Shareholder communications website
More information about J Sainsbury plc, including the latest results and 
reports, can be found on our website at www.about.sainsburys.co.uk. 
As well as providing share price data and financial history, the site also 
provides information on management, our business strategy and corporate 
governance. It also contains information for investors, our sustainability 
report, regulatory and news releases, and current issues.
Electronic shareholder communications
The Company encourages all shareholders to receive their shareholder 
communications electronically to reduce our impact on the environment 
and has set up a facility for shareholders to do so. The service allows you to:
•	 View the Annual Report and Financial Statements on the day it is published
•	 	Receive electronic notification of the availability of future shareholder 
information (you must register your email address for this service)
•	 Check the balance and current value of your shareholding and view your 
dividend history
•	 Submit your vote online prior to a general meeting
To register, visit www.shareview.co.uk. You will need your 11-digit Shareholder 
Reference Number, which can be found on your share certificate and dividend 
confirmation. For each shareholder registration, a donation will be made to the 
Woodland Trust, the UK’s leading woodland conservation charity. 
Share dealing services
To buy or sell your J Sainsbury plc ordinary shares, please visit your 
stockbroker or your bank who will usually be able to assist you. Alternatively, 
you may consider using Equiniti. Equiniti offers a telephone and online 
facility, which gives shareholders the opportunity to trade at a known price. 
The telephone service is available from 8.00am to 4.30pm, Monday to Friday, 
excluding bank holidays, on 03456 037 037. The online share dealing service 
gives shareholders the option to submit instructions to trade online and more 
information can be found by visiting www.shareview.co.uk.
ShareGift
If you have a small number of shares which would cost more for you to sell 
than they are worth, you may wish to consider donating them to the charity 
ShareGift (Registered Charity 1052686) which specialises in accepting such 
shares as donations. The relevant stock transfer form may be obtained from 
Equiniti. There are no implications for Capital Gains Tax purposes (no gain or 
loss) on gifts of shares to charity. If you are a UK taxpayer, it is also possible 
to obtain income tax relief. Further information about ShareGift may be 
obtained by calling 020 7930 3737, emailing help@sharegift.org or by visiting 
www.sharegift.org.
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Financial Statements

J Sainsbury plc Annual Report and Financial Statements 2024  205
Shareholder security
Investment scams are designed to look like genuine investments and 
fraudsters use persuasive, high pressure tactics to scam investors.
Spot the warning signs
Have you been:
•	 Contacted out of the blue and told the investment is safe;
•	 Called repeatedly; or
•	 Told the offer is only available for a limited time?
Report a scam
Report any suspected investment scams to the FCA at  
www.fca.org.uk/consumers/report-scam-us or call  
the FCA Consumer Helpline on 0800 111 6768.
Avoid investment fraud
•	 Reject cold calls
•	 Check the FCA Warning List of firms and individuals who the FCA know 
are operating without their authorisation
•	 Get impartial advice
If you have lost any money to investment fraud, you should report it to 
Action Fraud on 0300 123 2040 or at www.actionfraud.police.uk. 
Find out more at www.fca.org.uk/scamsmart.
To understand how Sainsbury’s processes shareholder data, please visit 
www.about.sainsburys.co.uk/site-services/privacy-policy.
ProSearch
Sainsbury’s has instructed ProSearch, a specialist tracing company, to 
identify and communicate with shareholders who may be owed dividends or 
shares in Sainsbury’s. If you have received a communication from ProSearch 
and think you may be due dividends or shares in Sainsbury’s, please contact 
ProSearch directly for more information. You can call them on 0371 384 
2735* or visit www.prosearchassets.com.
*	
Lines are open 9.00am to 5.00pm Monday to Friday (excluding UK public holidays).
American Depository Receipts (ADRs)
The Company has a sponsored Level 1 ADR programme for which the 
Bank of New York Mellon acts as depository. The ADRs are traded on the 
over-the-counter (OTC) market in the US under the symbol JSAIY, where 
one ADR is equal to four ordinary shares. All enquiries relating to ADRs 
should be addressed to:
Bank of New York 
Mellon Shareholder Correspondence PO Box 505000 
Louisville 
KY 40233-5000
Toll Free Telephone number for US domestic callers: 1-888-269-2377 
International callers can call: +1-201-680-6825
Website: www.mybnymdr.com
Email: shrrelations@bnymellon.com
Key contacts and advisers
Registered office
J Sainsbury plc 
33 Holborn London EC1N 2HT
Registered number 185647
Investor Relations
James Collins
Director of Investor Relations  
J Sainsbury plc 
33 Holborn London EC1N 2HT
InvestorRelations2@sainsburys.co.uk
Registrars 
Equiniti 
Aspect House Spencer Road 
Lancing BN99 6DA
www.shareview.co.uk
Auditors
Ernst & Young LLP
1 More London Place  
London SE1 2AF
Solicitors 
Linklaters LLP 
One Silk Street London EC2Y 8HQ
Stockbrokers
UBS
5 Broadgate  
London EC2M 2QS
Stockbrokers 
Shore Capital Cassini House
57 St James’s Street  
London SW1A 1LD
General contact details
For any customer enquiries, please visit our websites:
•	 Sainsbury’s https://help.sainsburys.co.uk/help
•	 Argos www.argos.co.uk/help/contact-us
•	 Habitat www.habitat.co.uk/help/contact-us
•	 	Nectar www.nectar.com/help
•	 Sainsbury’s Bank www.sainsburysbank.co.uk/insuring/support/
customer_support_zone
Cautionary statement
Certain statements included in this Annual Report are forward-looking. Such 
statements are based on current expectations and are subject to a number 
of risks and uncertainties that could cause actual events or results to differ 
materially from any expected future events or results referred to in these 
forward-looking statements. They appear in a number of places throughout 
this Annual Report and include statements regarding our intentions, beliefs 
or current expectations and those of our officers, Directors and employees 
concerning, amongst other things, our results of operations, financial 
condition, liquidity, prospects, growth, strategies and the business we 
operate. Unless otherwise required by applicable law, regulation or 
accounting standard, we do not undertake any obligation to update or 
revise any forward-looking statements, whether as a result of new 
information, future developments or otherwise.
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206  J Sainsbury plc Annual Report and Financial Statements 2024
Annual General Meeting (AGM) – This year the AGM will be held on 4 July 
2024 at our registered office 33 Holborn, London EC1N 2HT at 11.00am.
Argos Financial Services (AFS) – ARG Personal Loans Limited; Home 
Retail Group Card Services Limited; and Home Retail Group Insurance 
Services Limited. 
bps – Basis points.
by Sainsbury’s – Core own-label brand.
CDP – Carbon Disclosure Project.
Click & Collect – Service which allows customers to place general 
merchandise and grocery orders online for collection in-store.
Corporate Responsibility and Sustainability (CR&S) – The need to act 
responsibly in managing our impact on a range of stakeholders: customers, 
colleagues, investors, suppliers, the community and the environment.
CPI – Consumer Price Index.
Earnings Per Share (EPS) – Earnings attributable to ordinary shareholders 
of the parent divided by the weighted average number of ordinary shares in 
issue during the year, excluding those held by ESOP Trusts, which are treated 
as cancelled.
Fair value – The amount for which an asset could be exchanged, or a liability 
settled, between knowledgeable, willing parties in an arm’s length transaction.
FVTPL – Fair value through profit or loss. Method of valuing a financial 
instrument where changes in fair value are recognised directly in the  
income statement.
FVTOCI – Fair value through other comprehensive income. Method of 
valuing financial instruments where changes in fair value are recognised 
through other comprehensive income.
GDPR – General Data Protection Regulations.
Greenhouse Gas (GHG) – Gases in the atmosphere which absorb infrared 
radiation emitted from Earth’s surface creating a ‘greenhouse effect’.
Group – The Company and its subsidiaries.
GSCOP – Grocery Supply Code of Practice.
HFSS – High fat sugar and salt.
IFRIC – International Financial Reporting Interpretations Committee.
IFRSs – International Financial Reporting Standard(s).
Joint venture (JV) – A business jointly owned by two or more parties.
Kantar Worldpanel (Kantar) / Nielson Global Solutions (Nielson) – 
Independent third parties providing data on the UK Grocery Market.
Live Well for Less – Sainsbury’s customer commitment to continue to help 
people live the life they want to live, with quality products at fair prices.
LTIP – Long-Term Incentive Plan.
Net zero – our commitment to becoming net zero in our own operations 
by 2035 through reducing our GHG emissions as much as possible and not 
adding to the amount of GHG in the atmosphere.
Nectar – One of the most popular loyalty schemes in the UK.
Paris Agreement – an agreement within the United Nations Framework 
Convention on Climate Change. The Agreement sets a goal for companies 
to limit global warming to 1.5°C above pre-industrial levels.
PCI – Payment card industry.
PRA – Prudential Regulation Authority.
RPI – Retail Price Index.
SONIA – Sterling Overnight Index Average
Taste the Difference – Sainsbury’s premium own brand range of products.
Total Shareholder Return (TSR) – The growth in value of a shareholding 
over a specified period, assuming that dividends are reinvested to purchase 
additional units of the stock.
Tu – Sainsbury’s own-label clothing range.
Glossary
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J Sainsbury plc’s commitment to environmental stewardship is reflected in this Annual 
Report, which has been printed on Revive 100 Offset, which is 100% post-consumer 
recycled, FSC® certified and totally chlorine free (TCF) paper. Printed in the UK by 
Park Communications using vegetable-based inks, with 99% of dry waste being diverted 
from landfill. The printer is a CarbonNeutral® company. Both the mill and the printer 
are certified to ISO 14001 (Environmental Management System) and ISO 9001 
(Quality Management System).
Please recycle.
CBP024631

Find out more at 
www.about.sainsburys.co.uk
33 Holborn 
London 
EC1N 2HT