J Sainsbury plc – Annual report – 5 March 2022
7 Segment reporting (extract)
Management has determined the operating segments based on the information provided to the Operating Board (the Chief Operating Decision Maker for the Group) to make operational decisions on the management of the Group. Three operating segments were identified as follows:
- Retail – Food
- Retail – General Merchandise and Clothing
- Financial Services
Significant judgement – aggregation of operating segments
Management has 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 in the financial statements. This aggregated information provides users with the financial information needed to evaluate the business and the environment in which it operates.