Sainsbury's plans to invest £750m a year on expanding and refurbishing its supermarkets as part of a wide-ranging strategic review following the failed takeover bid by a consortium led by private equity group CVC. Sunday Times
Under 'Propect Champion' the retailer wants to open up to 4m sq ft of supermarket space in a mixture of new stores, mezzanine floors and extensions. Around £250m of the planned £750m annual capital expenditure will be spent on refurbishing stores and the remaining £500m will be spent on developing new outlets.
Having been out of the property market for almost a decade, property experts said it could take until 2014 for many new stores to open, by the time Sainsbury's has bought land and obtained planning consent.
Sainsbury's is also reviewing its capital structure and considering whether to sell off parts of its property portfolio, estimated to be worth £8bn-£9bn.
The company has already been approached by British Land and Land Securities, who want to partner it in disposing of some of the property assets.