Sainsbury to ring changes
Sunday 29 October 1995
Analysts believe further appointments from outside are inevitable if the board is to be strengthened and cumbersome decision-making structures improved.
Sainsbury last week appointed Kevin McCarten, a trading director at the rival Kingfisher- owned Woolworth, as its new marketing director. He replaces Ivor Hunt, 54, who is taking early retirement next year. The move follows criticism that Sainsbury's marketing had lost direction in the face of national loyalty card schemes launched by its biggest competitors, Tesco and Safeway.
"The moves to shake up management have only just begun," said Tony MacNeary, retail analyst at NatWest Securities. In particular, pressure is growing for David Sainsbury, the chairman, to name a successor to his deputy chairman and joint managing director, Tom Vyner, who is due to retire in about two years.
Mr Vyner, who is responsible for all buying, merchandising and trading activities, has a formidable reputation among suppliers for his tough stance on negotiations and will be a hard act to follow, brokers say.
But they fear that delay in appointing a successor risks low morale at head office filtering down to store management and further aggravating poor like-for-like sales.
Figures for the six months to mid-September due on Wednesday are expected to show only a small rise in pre-tax profits to about pounds 455m compared with pounds 444m for the same period last year. Underlying sales growth in the core UK supermarket business is likely to be well below the industry average of almost 6 per cent.
Concerns about sluggish sales growth saw Sainsbury's shares hit a seven- month low last week.
- 1 Replica Back to the Future Hoverboard released
- 2 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 3 Brixton squat flats now costing up to £3k per month show how out of control rent is in London
- 4 A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
- 5 Gamers confess the worst things they've done in The Sims
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Brixton squat flats now costing up to £3k per month show how out of control rent is in London
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Germanwings crash: 'Andreas Lubitz planned to marry pregnant girlfriend', claims German report
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
iJobs Money & Business
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...
£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...
Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...