J Sainsbury PLC (LSE:SBRY) said it is planning a phased withdrawal from its core banking business.
The decision follows a review of its financial services division and comes ahead of the food retailer’s strategy update on February 7.
Chief executive Simon Roberts said in a statement today: “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.”
“It's business as usual for now at Sainsbury's Bank and there will be no immediate changes to products and services as a result of today's announcement.”
Sainsbury said it was exploring a number of options and that financial services products offered in the future will be provided by dedicated financial services providers through a distributed model, as it already does with insurance products.
Over time this will result in a phased withdrawal from its banking business.
Jim Brown will retire from his role as CEO of Sainsbury's Bank and Robert Mulhall has been appointed as his successor.