Sainsbury’s boss Simon Roberts will meet investors on Tuesday afternoon for the first time since wholesale retailer Bestway bought a 4.47% stake in the supermarket giant.
It marks the first opportunity for Bestway to engage with Sainsbury’s since it upped investment in the FTSE100-listed supermarket in recent weeks.
Shore Capital analysts suggest it is unlikely Sainsbury’s will acknowledge the move in any great detail, but would rather focus on the supermarket’s operating model, which has a seen an overhaul during the past year.
Sainsbury’s committed some £500mln to cutting its prices last year, aiming to stem rising costs and keep it competitive with discounters Aldi and Lidl, which have seen stronger performances as consumer’s pockets are squeezed by the higher cost of living.
“We would not expect any comment from the company on this investment aside that it will engage with Bestway as it does any other shareholder in the present circumstances,” said Shore Cap.
Suggestions have previously been made that Bestway could be eyeing a supply deal with Sainsbury’s, with AJ Bell analyst Russ Mould explaining its investment gives it the power to “demand proper conversations” with the group.
“A notable stake in the business also suggests it is serious about wanting to collaborate," Mould added in late January.
Bestway is the UK's largest cash and carry wholesaler and owns the likes of Costcutter, Well Pharmacy and Bargain Booze.