In key news on UK stocks, J Sainsbury PLC (GB:SBRY) has teamed up with Microsoft Corp. (NASDAQ:MSFT) to provide an AI-powered shopping experience in its supermarkets. With this 5-year partnership, Sainsbury aims to improve its overall store operations, including staff efficiency and enhanced customer service.
Following the announcement, SBRY stock is trading up by 0.43% as of writing.
J Sainsbury, commonly known as Sainsbury, is among the leading supermarket chains in the UK. The company operates through its 1,400 stores and has a strong online presence in the market.
More About Sainsbury-Microsoft Deal
Under this partnership, Sainsbury will use real-time data points from Microsoft to improve its operational procedures, such as the smarter shelf replenishment process. Overall, the company will use AI to create a more interactive shopping experience.
The company will also combine its data assets with Microsoft tools to drive returns through its “Save and Invest to Win” program by transforming operations and improving efficiency.
Additionally, the deal with Microsoft will help Sainsbury deliver the targets outlined in its Next Level strategy. This strategy is focused on leveraging the company’s current business momentum to deliver enhanced returns for shareholders.
Earlier in February, Sainsbury’s provided its strategy update, including a new cost savings goal of £1 billion over three years, alongside a commitment to enhance shareholder returns. It also stated a target of generating more than £1.6 billion in retail cash flow by FY27.
Insights from Sainsbury’s 2023/24 Annual Results
Last month, Sainsbury published solid results for Fiscal 2023/24, reflecting market share gains and volume growth. During this period, the company’s retail sales increased by 6.8% year-over-year, driven by grocery sales growth of 9.4%.
Additionally, retail underlying operating profit reached £966 million, showing a 4.3% rise. Moving forward, the company expects retail underlying operating profit to range between £1,010 million and £1,060 million, reflecting a growth rate of 5% to 10%.
Is Sainsbury a Good Stock to Buy?
On TipRanks, SBRY stock has been assigned a Moderate Buy consensus rating based on three Buys, one Hold, and one Sell recommendation. The Sainsbury share price target of 303.40p is 7.21% above the current trading level.