Sainsbury’s share price: Grocer beefs up tech team
J Sainsbury (LON:SBRY) is hiring 150 digital and technology experts to help improve its online store, the Guardian has reported. The move comes as the blue-chip supermarket, which recently inked a deal to acquire Home Retail Group, is facing growing competition from online retailers which are challenging traditional grocers.
Sainsbury’s share price has fallen deep into the red this morning, having lost 1.09 percent to 281.80p as of 08:54 BST, and underperforming the blue-chip FTSE 100 index which has shed 0.49 percent so far in today’s session. Sainsbury’s shares have gained about two percent over the past year, and are up some ten percent in the year-to-date.
The Guardian reported this morning that Sainsbury’s was hiring 150 digital and technology experts, who will work out of an existing Sainsbury’s office in Manchester’s Arndale centre, and will work in partnership with 900 other digital and technology experts based in London and Coventry.
“The world is changing rapidly. Our vision is for Sainsbury’s to have a world-class digital and technology function to ensure that we can deliver great services for our customers whenever and wherever they want to shop with us,” Jon Rudoe, digital and technology director at the blue-chip grocer said, as quoted by the newspaper, adding that Manchester was a natural place for Sainsbury’s to recruit in since it was the UK’s second largest technology hub, after London.
Sainsbury’s has more than doubled its digital and technology team in the past year, hiring 480 staff as it faces growing competition from Amazon, which recently inked a supply deal Wm Morrison Supermarkets (LON:MRW). The grocer is currently in the process of acquiring Argos which it hopes will help it take on online competitors.
Last week, Morningstar said in a note “the impact of acquiring Argos could help Sainsbury bolster its competitive position in an era of e-commerce, as Sainsbury will be uniquely positioned to sell general merchandise products in the online channel”.
As of 09:27 BST, Monday, 18 April, J Sainsbury plc share price is 281.80p.