Sainsbury’s has announced that it will be winding down its banking division as part of its “food first” strategy and will be focusing on its core retail businesses.
The company is exploring several options as part of a “phased withdrawal” from the banking business, which could result in products being outsourced to other providers, similar to its insurance products. Sainsbury’s Bank currently offers loans, credit cards, and savings accounts from its own bank.
Sainsbury’s has assured its customers that it will be “business as usual for now” at the bank, with no immediate changes to the products and services it offers. However, there is no current timeline for how long the exit will take.
Simon Roberts, chief executive of Sainsbury’s, said: “We have been clear since we launched our food first strategy in 2020 that we would concentrate our efforts on our core retail businesses and today’s announcement reflects that strategic focus. We will, of course, communicate directly to customers well in advance of any changes to their products and services”.
Jim Brown, the current chief executive of Sainsbury’s Bank, is set to retire from his role amid the wind-down of the division. He will be replaced by Robert Mulhall, who previously headed up Allied Irish Bank’s UK division, at the end of March to oversee the changes.
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