British Retailer Sainsbury's: On the Road to Recovery

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Case Details:

Case Code : BSTR302
Case Length : 26 Pages
Period : 1995-2008
Pub Date : 2009
Teaching Note :Not Available
Organization : Sainsbury's
Industry : Retail
Countries : UK

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Sainsbury's made its beginning in 1869, when its first store was opened by John James Sainsbury (John) and his wife Mary Ann Sainsbury (Mary) at their home in Drury Lane, London. The store offered high quality food at reasonable prices. Initially only fresh food was sold. Later, the store started to stock some packaged grocery items like tea and sugar. From the very start, the emphasis was on cleanliness, hygiene, quality, and order of keeping things within the store. This kind of organized store, a new concept in those times, drew several customers who till then, had to be content with small, cluttered family-owned shops, and unhygienic stalls and carts of the street vendors...

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Beginning of The Fall (1995-2000)

During the mid-1990s, Sainsbury's enjoyed supremacy in the retail industry. At that time, the entire retail market was going through a lot of changes. Many big and small retailers, including hard discounters entered the market with new initiatives and marketing strategies...

Efforts to Recover Under Peter Davis (2000-2004)

In March 2000, in an attempt to revive the company and get back market share, a new CEO, Sir Peter Davis (Davis), was appointed in place of Adriano. Davis had earlier worked with the company between 1976 and 1984 and had handled marketing and buying operations...

...And Then Came Justin King

On March 29, 2004, King was appointed as the company's new CEO. He had earlier been employed with the food division of Marks and Spencers (M&S) (since 2001), before which he had worked with Asda. (Refer to Exhibit V for a brief profile of Justin King)...

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