Sainsbury is plotting a 'phased withdrawal' from its banking operations as the retailer continues to pursue its 'Food First' strategy.

Financial products will be offered through 'dedicated financial services providers' through a distributed model. Sainsbury's already does this with its insurance policies. 

At present, Sainsbury's has a range of credit cards, loans and savings accounts on offer. 

Strategy: Sainsbury's chief executive Simon Roberts is plumping for a 'Food First' strategy 

In a short statement, Sainsbury's said: 'Over time this will result in a phased withdrawal from our core Banking business.

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It added: 'There will be no immediate changes to the products or services that we provide to customers as a result of this decision.'

Jim Brown will retire from his role as chief executive of Sainsbury's Bank and will be replaced by Robert Mulhall, the former head of Allied Irish Bank's UK division.

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.'

He added: '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.

'We will of course communicate directly to customers well in advance of any changes to their products and services.'

The company in August divested its mortgage portfolio, which comprised 3,500 customers and balances of about £479million, to the Co-operative Bank. 

Nectar prices: Sainsbury's has upped its use of Nectar card only pricing in-store and online

It claimed to have out- performed rivals on food sales over retail’s ‘golden quarter’.

Grocery sales over the 16 weeks to January 6 were 9.3 per cent higher than a year earlier as more customers opted for its ‘Taste the Difference’ own-label range.

Roberts reiterated hopes for profits of between £670million and £700million for the full year.

‘We’ve grown grocery volumes ahead of the market for the fourth Christmas in a row,’ he said.

which it claimed helped shoppers save an average of £16 on an £80 Christmas shop.

Tesco's Clubcard and Sainsbury's Nectar Prices are to be scrutinised by the UK's competition watchdog in a probe into supermarket loyalty schemes.