British Retailer Sainsbury's: On the Road to Recovery
Case Code: BSTR302
Case Length: 26 Pages
Pub Date: 2009
Teaching Note: Not Available
Themes: Turnaround Strategy
Abstract Case Intro 1 Case Intro 2 Excerpts
Sainsbury's, one of the leading supermarket chains in the UK and part of the J Sainsbury Group, was started in 1869. It became the leading retailer in the early 1900s and enjoyed supremacy in the market till the early 1990s. The case discusses how Sainsbury's failed to recognize the threat from the growing competition, leading to it losing its leadership position to competitor Tesco in 1995. The company further started to lose market share, although sales were still happening. The case also talks about some of its recovery strategies under different CEOs, particularly the business transformation initiated by Peter Davis, which did not produce the desired results.
In 2003, Asda ousted Sainsbury's from the No.2 position. Justin King was brought in as the CEO in 2004 to help the company recover from the losses and resurrect the business. The case discusses the various strategies and decisions taken by Justin King, detailing his plan 'Making Sainsbury's Great Again'. It also highlights the three-year recovery targets that he set for the company and how he went about achieving them. The case concludes with the details of 'Recovery to growth plan' that Justin King had proposed to steer Sainsbury's ahead and some challenges that the company was facing in the market.
The case is structured to achieve the following teaching objectives
- Examine reasons for Sainsbury's growth and its subsequent slide in the 1990s and early 2000s
- Analyze the reasons for the recovery efforts taken under various CEOs including Peter Davis that did not yield the desired results
- Analyze Justin King's 'Making Sainsbury's Great Again' plan
- Ascertain the challenges the company is likely to face in the future and explore future strategies that the retailer can adopt
Beginning of the Fall (1995-2000)
Efforts to Recover Under Peter Davis (2000-2004)
...And Then Came Justin King
King's Initiatives to Make Sainsbury's Great Again
Is Sainsbury's Great Again?
The Road Ahead
Turnaround, Business transformation, Brand communication, Supply chain, Store operations, Making Sainsbury's great again, Recovery to growth plan, UK grocery market, Sainsbury's, Justin King, Retail, Tesco, Clubcard, Asda
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