Justin Kings decade as CEO has had a significant impact on Sainsburys and has revitalised a retail brand that was struggling under his predecessors. Since King has taken over Sainsburys has reported strong growth, reclaiming its position as the second largest retailer in the UK. His focus on boosting the brand reputation and emphasis on emerging channels such as convenience stores has delivered 36 consecutive quarters of like-for-like growth. This has come during a very difficult transitional period for UK retail given the credit crisis and subsequent austerity as well as heightened competition from discount, and online channels. King has also received some good fortune in his time at the helm Sainsburys was virtually the only retailer to emerge unscathed from last years horsemeat scandal which hit competitor sales, although King may argue that this is a reflection of more rigorous standards. His departure, however, comes at a pivotal time for Sainsburys given the decision to cut its full year sales forecast and the shift in strategy from competitors such as Morrisons to compete more in the online and convenience spaces where Sainsburys has thrived. Like Terry Leahy at Tesco, Kings tenure is likely to be remembered as one of growth, but perhaps the post-Leahy decline experienced by Tesco will serve as a warning against complacency for his successor.
Posted on: Wed, 29 Jan 2014 12:54:23 +0000