J Sainsbury plc – Annual report – 2 March 2024
Industry: retail
4 Significant judgements and estimates (extract)
4.1 Significant judgements (extract)
c) Aggregation of operating segments
The Group’s operating segments have been determined based on the information regularly provided to the Chief Operating Decision Maker (CODM), which has been determined to be the Group Operating Board. This information is used to make optimal decisions on the allocation of resources and assess performance.
The CODM is presented information for the following operating segments:
- Retail – Food
- Retail – General Merchandise and Clothing
- Financial Services
Management have considered the economic characteristics, in particular average gross margin, similarity of products, production processes, customers, sales methods and regulatory environment of its two Retail segments. In doing so it has been concluded that they should be aggregated into one ‘Retail’ segment within the financial statements given the similar economic characteristics between the two. This aggregated information provides users the financial information needed to evaluate the business and the environment in which it operates.
Accounts examples 