The new strategic plan unveiled by Sainsbury's received a lukewarm reception on the London Stock Exchange on Wednesday, despite the British retailer's declared focus on growth, cash generation and shareholder remuneration.

The share price was down 3.5% at the start of the day, making it one of the biggest decliners on the Europe STOXX 600 index.

Sainsbury's, which this morning detailed the financial objectives of its new three-year roadmap dubbed 'Next Level Sainsbury's', said it was aiming for an improvement in operating profit thanks to above-market volume growth in food.

The group says it continues to expect free cash flow in its retail business of at least £500 million per annum over the period 2024-2027, totalling at least £1.6 billion over the three years combined.

The supermarket chain has also committed to a 'progressive' dividend policy from the next financial year, to be accompanied by the launch of a £200 million share buyback program.

But in a research note, UBS analysts consider these targets insufficient to trigger a significant upward revision of consensus forecasts.

The share price, down by almost 10% since the start of the year, is virtually stable (+1.5%) over the past 12 months.

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