Jump to content
Main menu
Main menu
move to sidebar
hide
Navigation
Main page
Recent changes
Random page
Help about MediaWiki
Special pages
Niidae Wiki
Search
Search
Appearance
Create account
Log in
Personal tools
Create account
Log in
Pages for logged out editors
learn more
Contributions
Talk
Editing
Sainsbury's
(section)
Page
Discussion
English
Read
Edit
View history
Tools
Tools
move to sidebar
hide
Actions
Read
Edit
View history
General
What links here
Related changes
Page information
Appearance
move to sidebar
hide
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
==History== ===Origin and growth (1869–1955)=== [[File:Drurylan.jpg|thumb|right|Sainsbury's first shop in Drury Lane c. 1919]] Sainsbury's was established as a partnership in 1869, when [[John James Sainsbury]] and his wife [[Mary Ann Sainsbury|Mary Ann]] opened a shop at 173 Drury Lane in Covent Garden, London.<ref>{{cite web|title=London Roots|publisher=Museum in Docklands|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Londonroots.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121160918/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Londonroots.htm|archive-date=21 November 2008}}</ref> Sainsbury started as a retailer of fresh foods and later expanded into packaged groceries such as tea and sugar. His trading philosophy, as stated on a sign outside his first shop was: "Quality perfect, prices lower".<ref>{{cite web|title=Islington|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Islington.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121090703/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Islington.htm|archive-date=21 November 2008}}</ref> Shops started to look similar, so a high cast-iron 'J. SAINSBURY' sign featured on every London shop so that it could be recognised from a distance,<ref>{{cite web|title=Shopfronts|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Design/prodfronts.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121113021/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Design/prodfronts.htm|archive-date=21 November 2008}}</ref> and round-the-back deliveries started to add extra convenience and not upset rivals due to Sainsbury's popularity.<ref>{{cite web|title=Stepney|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Stepney.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121160408/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Stepney.htm|archive-date=21 November 2008}}</ref> In 1922, J Sainsbury was incorporated as the private company 'J. Sainsbury Limited'.<ref>{{cite web|title=Redhill|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Redhill.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121125136/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Redhill.htm|archive-date=21 November 2008}}</ref> Groceries were introduced in 1903, when John James purchased a grocer's branch at 12 Kingsland High Street, [[Dalston]]. Every shop offered home delivery, as there were fewer cars in those days. Sites were carefully chosen, with a central position in a parade selected in preference to a corner shop. This allowed a larger display of products, which could be kept cooler in summer, which was important as there was no refrigeration.<ref>{{cite web|title=Counter Service Layout|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Design/archcounter.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121101922/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Design/archcounter.htm|archive-date=21 November 2008}}</ref> By the time John James Sainsbury died in 1928, there were over 128 shops. He was replaced by his eldest son, [[John Benjamin Sainsbury]], who had gone into partnership with his father in 1915.<ref>{{cite web|title=The Founders: John James Sainsbury|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/People/Sainsburys/|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081006150036/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/People/Sainsburys/|archive-date=6 October 2008}}</ref> During the 1930s and 1940s, the company continued to refine its product offerings and maintain its leadership in terms of shop design, convenience, and cleanliness.<ref>{{cite web|title=The Design Journal 1966|publisher=Vads|url=http://vads.ahds.ac.uk/diad/article.php?year=1966&title=211&article=d.211.34|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20131211232717/http://vads.ahds.ac.uk/diad/article.php?year=1966&title=211&article=d.211.34|archive-date=11 December 2013}}</ref> The company acquired the Midlands-based Thoroughgood chain in 1936.<ref>{{cite web|title=The Bantons and expansion into the Midlands|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Bantonsandthemidlands.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121123304/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/Bantonsandthemidlands.htm|archive-date=21 November 2008}}</ref> The founder's grandsons [[Alan Sainsbury, Baron Sainsbury|Alan Sainsbury]] (later Lord Sainsbury) and [[Sir Robert Sainsbury]] became joint managing directors in 1938, after their father, John Benjamin Sainsbury, had a minor heart attack.<ref name="The Third Generation">{{cite web|title=The Third Generation|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/People/Sainsburys/Thirdgeneration.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20100110200930/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/People/Sainsburys/Thirdgeneration.htm|archive-date=10 January 2010}}</ref> In the [[Second World War]], many of the men who worked for Sainsbury's were called to perform National Service and were replaced by women. The war was a difficult time for Sainsbury's, as most of its shops were trading in the London area and were bombed or damaged. Turnover fell to half the prewar level. Food was rationed, and one particular shop in [[East Grinstead]] was so badly damaged on Friday 9 July 1943 that it had to move to the local church, temporarily, while a new one was built. This shop was not completed until 1951.<ref>{{cite web|title=East Grinstead Case Study|publisher=Sainsbury Archive|url=http://www.j-sainsbury.co.uk/museum/case_study.htm|access-date=11 November 2008|archive-url=https://web.archive.org/web/20050307201513/http://www.j-sainsbury.co.uk/museum/case_study.htm|archive-date=7 March 2005}}</ref> ===Self-service and heyday (1956–1991)=== In 1956, Alan Sainsbury became chairman after the death of his father, [[John Benjamin Sainsbury]].<ref name="The Third Generation"/> During the 1950s and 1960s, Sainsbury's was a keen early adopter of self-service supermarkets in the United Kingdom. On a trip to the United States, Alan Sainsbury realised the benefits of self-service shops and believed the future of Sainsbury's was self-service supermarkets of {{convert|10000|sqft|m2|abbr=on}}, with eventually the added bonus of a car park for extra convenience.<ref>{{cite web|title=The American Example|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Progress/Self-service/|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081012162539/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Progress/Self-service/|archive-date=12 October 2008}}</ref> The first self-service branch opened in [[London Borough of Croydon|Croydon]] in 1950.<ref>{{cite web|title=Overview|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Products/Range/|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081006152450/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Products/Range/|archive-date=6 October 2008}}</ref> Sainsbury's was a pioneer in the development of own-brand goods; the aim was to offer products that matched the quality of nationally branded goods but at a lower price.<ref>{{cite web|title=Advertising|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Products/Advertising/|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081006154050/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Products/Advertising/|archive-date=6 October 2008}}</ref> It expanded more cautiously than [[Tesco]], shunning acquisitions, and it never offered [[trading stamps]].<ref>{{cite web|title=Targeting customers|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Products/Advertising/target+cust.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121145558/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Products/Advertising/target+cust.htm|archive-date=21 November 2008}}</ref> Until the company went public on 12 July 1973, as J Sainsbury plc, the company was wholly owned by the Sainsbury family. It was at the time the largest ever flotation on the [[London Stock Exchange]];<ref>{{cite news|title=Sainsbury's targeted for Europe's biggest private equity buyout|work=The Guardian|date=3 February 2007|url=https://www.theguardian.com/business/2007/feb/03/privateequity.supermarkets|access-date=11 November 2008|location=London|first=Julia|last=Finch|archive-date=17 May 2014|archive-url=https://web.archive.org/web/20140517155133/http://www.theguardian.com/business/2007/feb/03/privateequity.supermarkets|url-status=live}}</ref> the company rewarded the smaller bids for shares in order to create as many shareholders as possible. A million shares were set aside for staff, which led to many staff members buying shares that shot up in value. Within one minute the list of applications was closed: £495 million had been offered for £14.5 million available shares. The Sainsbury family at the time retained 85% of the firm's shares.<ref>{{cite news|url=https://www.independent.co.uk/news/obituaries/simon-sainsbury-418613.html|title=Simon Sainsbury|newspaper=The Independent|date=3 October 2006|access-date=11 April 2017|archive-date=12 April 2017|archive-url=https://web.archive.org/web/20170412062307/http://www.independent.co.uk/news/obituaries/simon-sainsbury-418613.html|url-status=live}}</ref> [[File:Sainsbury's Bradford on Avon.JPG|thumb|right|Sainsbury's in [[Bradford on Avon]], Wiltshire]] Most of the senior positions were held by family members. John Davan Sainsbury (later [[Lord Sainsbury of Preston Candover]]),<ref>{{cite web|title=The Fourth Generation|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/People/Sainsburys/Fourthgeneration.htm|access-date=15 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121162540/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/People/Sainsburys/Fourthgeneration.htm|archive-date=21 November 2008}}</ref> a member of the fourth generation of the founding family, took over the chairmanship from his uncle [[Sir Robert Sainsbury]] in 1969, who had been chairman for two years from 1967 following Alan Sainsbury's retirement.<ref>SAINSBURY, Sir Robert (James)’, Who Was Who, A & C Black, an imprint of Bloomsbury Publishing plc, 1920–2007</ref> Sainsbury's started to replace its {{convert|10000|sqft|m2|abbr=on}} High Street shops with self-service supermarkets above {{convert|20000|sqft|m2|abbr=on}}, which were either in out of town locations or in regenerated town centres. Sainsbury's policy was to invest in uniform, well designed shops with a strong emphasis on quality; its slogan was "good food costs less at Sainsbury's".<ref>{{cite book|first=John|last=Kay|title=The Business of Economics Page 29|publisher=Oxford|url=https://books.google.com/books?id=GwJSnuHLE6gC&q=%22good+food+costs+less+at+Sainsbury's%22.&pg=PA29|access-date=11 November 2008|isbn=9780191521898|date=10 October 1996|archive-date=19 July 2022|archive-url=https://web.archive.org/web/20220719015244/https://books.google.com/books?id=GwJSnuHLE6gC&q=%22good+food+costs+less+at+Sainsbury%27s%22.&pg=PA29|url-status=live}}</ref> During the 1970s, the average size of Sainsbury's shops rose from {{convert|10000|sqft|m2|abbr=on}} to around {{convert|18000|sqft|m2|abbr=on}}; the first edge of town shop, with {{convert|24000|sqft|m2|abbr=on}} of selling space, was opened at Coldhams Lane in [[Cambridge]] in 1974. The last counter service branch closed in [[Peckham]] in 1982.<ref>{{cite web|title=Evolution of the supermarket|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Progress/Self-service/evolutionof+supermarket.htm|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081121083208/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Progress/Self-service/evolutionof+supermarket.htm|archive-date=21 November 2008}}</ref> To participate in the [[hypermarket]] sector, Sainsbury's formed a joint venture, known as [[SavaCentre]], with [[British Home Stores]]. The first SavaCentre shop was opened in [[Washington, Tyne and Wear]], in 1977;<ref>{{cite web|title=London Roots|publisher=Sainsbury Archive|url=http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081006153358/http://www.museumindocklands.org.uk/English/Collections/CollectionsOnline/SainsburyArchive/Themes/Places/Expansion/|archive-date=6 October 2008}}</ref> nearly half the space, amounting to some {{convert|35000|sqft|m2|abbr=on}}, was devoted to textiles, electrical goods and hardware. As the hypermarket format became more mainstream, with rivals such as [[Asda]] and Tesco launching ever larger shops, it was decided that a separate brand was no longer needed, and the shops were converted to the regular Sainsbury's superstore format in September 1999.<ref>{{cite news|title=Sainsbury's plans new division|work=The Independent|location=UK|date=24 September 1999|url=http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14218861|access-date=15 November 2008 }} {{Dead link|date=September 2010|bot=H3llBot}}</ref> Sainsbury's diversified further in 1979, forming a joint venture with the Belgian retailer, GB-Inno-BM, to set up a chain of do-it-yourself shops under the [[Homebase]] name.<ref>{{cite news|title=Retailers in the line of fire|work=The Independent|location=UK|date=25 July 2008|url=http://findarticles.com/p/articles/mi_qn4158/is_20080725/ai_n27957864/pg_2|access-date=11 November 2008 }} {{Dead link|date=September 2010|bot=H3llBot}}</ref> Sainsbury's also trebled the size of its Homebase do it yourself business during 1996, by merging its business with [[Texas Homecare]], which it acquired in January 1995 from Ladbroke for £290 million.<ref>{{cite news|date=14 January 1995|title=Sainsbury's tipped to buy Texas|work=The Independent|publisher=Independent Newspapers|url=http://findarticles.com/p/articles/mi_qn4158/is_/ai_n9636430|access-date=9 November 2008}} {{Dead link|date=September 2010|bot=H3llBot}}</ref> Sainsbury's sold the Homebase chain in December 2000, in a twofold deal worth [[GBP|£]]969 million. Sales of the stores to [[Schroder Ventures]] generated £750 million and sale of 28 development sites, which had been earmarked for future Homebase shops, were sold for £219 million to rival [[B&Q]]'s parent company, [[Kingfisher plc]].<ref>{{cite news|title=Sainsbury's sells Homebase|date=20 December 2000|url=http://news.bbc.co.uk/1/hi/business/1082731.stm|access-date=10 November 2008|work=BBC News|archive-date=26 July 2017|archive-url=https://web.archive.org/web/20170726031424/http://news.bbc.co.uk/1/hi/business/1082731.stm|url-status=live}}</ref> During the 1980s, the company invested in new technology: the proportion of sales passing through EPOS scanning checkouts rose from 1% to 90%.<ref name="page7" /> In November 1983, Sainsbury's purchased 21% of [[Shaw's Supermarkets]], the second largest retailer of groceries in the northeastern United States (primarily in New England). In June 1987, Sainsbury's acquired the rest of the company.<ref name="page7">{{cite news|title=Corporate Strategy in the UK Food Retailing 1980–2002 Page 7|url=http://cep.lse.ac.uk/seminarpapers/24-05-04%20-%20Background%20paper%20by%20Geoffrey%20Owen.pdf|archive-url=https://web.archive.org/web/20040721174741/http://cep.lse.ac.uk/seminarpapers/24-05-04%20-%20Background%20paper%20by%20Geoffrey%20Owen.pdf|url-status=dead|archive-date=21 July 2004|access-date=10 November 2008 }}</ref> In 1985, the chairman reported that over the preceding 10 years profits had grown from £15 million to over £168 million, a compound annual rise of 30.4% – after allowing for inflation a real annual growth rate of 17.6%.<ref name="page7" /> In 1991, the Sainsbury's group boasted a twelve-year record of dividend increases, of 20% or more and earnings per share had risen by as much for nearly as long.<ref name="page14">{{cite news|title=Corporate Strategy in the UK Food Retailing 1980–2002 Page 14|url=http://cep.lse.ac.uk/seminarpapers/24-05-04%20-%20Background%20paper%20by%20Geoffrey%20Owen.pdf|url-status=dead|access-date=10 November 2008|archive-url=https://web.archive.org/web/20040721174741/http://cep.lse.ac.uk/seminarpapers/24-05-04%20-%20Background%20paper%20by%20Geoffrey%20Owen.pdf|archive-date=21 July 2004}}</ref> Also in 1991, the company raised £489 million, in new equity to fund the expansion of superstores.<ref name="page14" /> With the advent of out of town shopping complexes during the 1980s, Sainsbury's was one of the many big retail names to open new shops in such complexes – notably with its shop at the [[Meadowhall Shopping Centre]], [[Sheffield]] (originally as a SavaCentre) in 1990,<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/england/south_yorkshire/4394041.stm|title=Sainsbury's closes flagship store|publisher=BBC|date=30 March 2005|access-date=11 April 2017|archive-date=14 October 2007|archive-url=https://web.archive.org/web/20071014041914/http://news.bbc.co.uk/1/hi/england/south_yorkshire/4394041.stm|url-status=live}}</ref> and the [[Merry Hill Shopping Centre]] at [[Brierley Hill]] in the [[West Midlands (county)|West Midlands]], which opened in September 1989.<ref>{{cite web|url=http://www.halesowennews.co.uk/news/blackcountry/14772222.Sainsbury_s_Merry_Hill_store_to_close_at_the_end_of_the_year/?ref=mr&lp=7|title=Sainsbury's Merry Hill store to close at the end of the year|publisher=Halesowen News|date=29 September 2016|access-date=11 April 2017|archive-date=12 April 2017|archive-url=https://web.archive.org/web/20170412063554/http://www.halesowennews.co.uk/news/blackcountry/14772222.Sainsbury_s_Merry_Hill_store_to_close_at_the_end_of_the_year/?ref=mr&lp=7|url-status=live}}</ref> Sainsbury's expanded into Scotland in 1992 with a shop in [[Darnley]] (the SavaCentre at [[Cameron Toll]] in Edinburgh had opened in 1984). In June 1995, Sainsbury's announced its intention to move into the Northern Ireland market, until that point dominated by local companies.<ref>{{cite web|title=The sourcing in Northern Ireland of agricultural produce by national supermarkets and retailers|publisher=Northern Ireland Forum for Political Dialogue|date=23 January 1998|url=http://www.ni-forum.gov.uk/reports/cr19.pdf|access-date=28 August 2006|url-status=dead|archive-url=https://web.archive.org/web/20061014033132/http://www.ni-forum.gov.uk/reports/cr19.pdf|archive-date=14 October 2006 }}</ref> Between December 1996 and December 1998, the company opened seven shops. Two others at [[Sprucefield]], Lisburn, and [[Holywood Exchange]], Belfast would not open until 2003, due to protracted legal challenges.<ref>{{cite web|title=J Sainsbury plc Preliminary Results 2003/4|publisher=J Sainsbury plc|date=19 May 2004|url=http://www.j-sainsbury.com/files/results/prelims04/pres_booklet.pdf#search=%22%22holywood%20exchange%22%20opened%22|format=PDF|access-date=23 August 2006|url-status=dead|archive-url=https://web.archive.org/web/20070927081400/http://www.j-sainsbury.com/files/results/prelims04/pres_booklet.pdf|archive-date=27 September 2007 }}</ref> While Sainsbury's outlets in Northern Ireland were all new developments, Tesco (apart from one Tesco Metro) instead purchased existing chains from [[Associated British Foods]] (see [[Tesco Ireland]]).<ref>{{cite web|url=http://europa.eu/rapid/press-release_IP-97-392_en.htm|title=Commission clears the acquisition by Tesco of ABF's businesses in the Irish retail sector|publisher=European Commission|date=6 May 1997|access-date=11 April 2017|archive-date=12 February 2017|archive-url=https://web.archive.org/web/20170212091345/http://europa.eu/rapid/press-release_IP-97-392_en.htm|url-status=live}}</ref> ===Decline (1992–1998)=== [[File:Sainsbury's supermarket, Greenwich.jpg|thumb|The [[Sainsbury's, Greenwich|Sainsbury's supermarket building in Greenwich]], which was nominated for the [[Stirling Prize]] in 2000 and has since been demolished]] In 1992, the long time CEO [[John Sainsbury, Baron Sainsbury of Preston Candover|John Davan Sainsbury]] retired, and was succeeded as chairman and chief executive by his cousin, David Sainsbury (later [[Lord Sainsbury of Turville]]); this brought about a change in management style – David was more consensual and less hierarchical, but not in strategy or in corporate beliefs about the company's place in the market.<ref name="page14" /> Mistakes by David Sainsbury and his successors, [[Dino Adriano]] and [[Sir Peter Davis|Peter Davis]], included the rejection of loyalty cards, the reluctance to move into non-food retailing, the indecision between whether to go for quality or for value, "the sometimes brutal treatment of suppliers" which led to suppliers favouring Tesco over Sainsbury's, and an unsuccessful advertising campaign fronted by [[John Cleese]].<ref>{{cite news|first=Patrick|last=Hosking|title=Rot set in at the family firm back in 1992|work=[[The Times]]|page=48|date=20 October 2004}}</ref> At the end of 1993, it announced price cuts on three hundred of its most popular own label lines. Significantly, this came three months after Tesco had launched its line ''Tesco Value''.<ref name="page14" /> A few months later, Sainsbury's announced that margins had fallen, that the pace of new superstores construction would slow down, and that it would write down the value of some of its properties.<ref name="page14" /> In 1994, Sainsbury's announced a new town centre format, Sainsbury's Central, again a response to Tesco's Metro, which was already established in five locations.<ref name="page14" /> Also in 1994, Sainsbury's lost the takeover battle for [[William Low]] (like Tesco, Sainsbury's had long been under-represented in Scotland).<ref>{{cite news|title=The Company file: a tale of two supermarkets|url=http://news.bbc.co.uk/1/hi/business/the_company_file/317325.stm|work=BBC News|date=12 April 1999|access-date=10 November 2008|archive-date=18 January 2003|archive-url=https://web.archive.org/web/20030118033241/http://news.bbc.co.uk/1/hi/business/the_company_file/317325.stm|url-status=live}}</ref> Also that year, David Sainsbury dismissed Tesco's clubcard initiative as 'an electronic version of [[Green Shield Stamps]]'; the company was soon forced to backtrack, introducing its own Reward Card eighteen months later.<ref>{{cite news|title=Report on Tesco|url=http://profesores.ie.edu/enrique_dans/TESCO/TESCO.pdf|archive-url=https://web.archive.org/web/20040226185045/http://profesores.ie.edu/enrique_dans/TESCO/TESCO.pdf|url-status=dead|archive-date=26 February 2004|access-date=10 November 2008}}</ref> For much of the 20th century, Sainsbury's had been the market leader in the supermarket sector in the United Kingdom, but in 1995, it lost this position to Tesco.<ref>{{cite news|title=The bluffer's guide: Sainsbury's|url=http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14044252|work=The Independent|publisher=Independent Newspapers|date=5 May 1996|access-date=9 November 2008}} {{Dead link|date=September 2010|bot=H3llBot}}</ref> Some new ventures were successful, notably the launch of a retail bank, [[Sainsbury's Bank]], in partnership with [[Bank of Scotland]].<ref>{{cite news|title=Sainsbury's opens bank with high rate for savers|url=http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14096852|work=The Independent|publisher=Independent Newspapers|date=20 February 1997|access-date=9 November 2008}} {{Dead link|date=September 2010|bot=H3llBot}}</ref> In addition to Shaw's, Sainsbury's bought a minority stake in another supermarket group, Giant Food, based in [[Washington, DC]],<ref>{{cite news|first=Kenneth N.|last=Gilpin|title=Sainsbury Buys Stake in Giant Food|url=https://query.nytimes.com/gst/fullpage.html?res=9E00E2DF153DF937A35753C1A962958260|work=The New York Times|date=4 October 1994|access-date=9 November 2008|archive-date=19 July 2022|archive-url=https://web.archive.org/web/20220719015245/https://www.nytimes.com/1994/10/04/business/sainsbury-buys-stake-in-giant-food.html|url-status=live}}</ref> although this shareholding was subsequently sold when [[Ahold]] of the Netherlands made a full bid for the company.<ref>{{cite news|url=https://www.nytimes.com/1998/05/20/business/royal-ahold-set-to-acquire-giant-food.html|title=Royal Ahold Set to Acquire Giant Food|newspaper=The New York Times|date=20 May 1998|access-date=11 April 2017|archive-date=12 April 2017|archive-url=https://web.archive.org/web/20170412063322/http://www.nytimes.com/1998/05/20/business/royal-ahold-set-to-acquire-giant-food.html|url-status=live}}</ref> An arrangement in late 1995 with [[Supermarket Direct]] made Sainsbury's the first major grocery retailer in the UK to offer a home delivery service.<ref>{{cite news|last1=Garner|first1=Clare|title=Supermarket checks out shopping by phone|url=https://www.independent.co.uk/news/supermarket-checks-out-shopping-by-phone-1323377.html|website=The Independent|date=11 January 1996|access-date=11 September 2017|archive-date=31 August 2017|archive-url=https://web.archive.org/web/20170831220045/http://www.independent.co.uk/news/supermarket-checks-out-shopping-by-phone-1323377.html|url-status=live}}</ref> In May 1996, the company reported its first fall in profits for 22 years. David Sainsbury announced management changes, involving the appointment of two chief executives, one in charge of supermarkets within the United Kingdom (Dino Adriano) and the other responsible for Homebase, and the United States (David Bremner).<ref>{{cite news|title=Sainsbury's profit slump sparks plan for aggression|url=http://findarticles.com/p/articles/mi_qn4158/is_/ai_n14044961|work=The Independent|publisher=Independent Newspapers|date=9 May 1996|access-date=9 November 2008}} {{Dead link|date=September 2010|bot=H3llBot}}</ref> Finally, in 1998, David Sainsbury himself resigned from the company to pursue a career in politics.<ref>{{cite news|first=Deborah|last=Summers|title=Science minister resigns|url=https://www.theguardian.com/politics/2006/nov/10/immigrationpolicy.research|work=The Guardian|date=10 November 2006|access-date=9 November 2008|location=London|archive-date=26 September 2014|archive-url=https://web.archive.org/web/20140926042736/http://www.theguardian.com/politics/2006/nov/10/immigrationpolicy.research|url-status=live}}</ref> He was succeeded as non executive chairman by George Bull, who had been chairman of [[Diageo]],<ref>{{cite news|title=Raise a glass to research|url=https://www.telegraph.co.uk/finance/2906524/Fifty-lessons-Raise-a-glass-to-research.html |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/2906524/Fifty-lessons-Raise-a-glass-to-research.html |archive-date=12 January 2022 |url-access=subscription |url-status=live|work=The Telegraph|date=23 February 2005|access-date=9 November 2008|location=London}}{{cbignore}}</ref> and Adriano was promoted to be group chief executive.<ref>{{cite news|title=Profile of Dino Adriano|url=http://www.highbeam.com/doc/1G1-20974260.html|work=The Grocer|date=25 July 1998|access-date=9 November 2008}}{{dead link|date=February 2019|bot=medic}}{{cbignore|bot=medic}}</ref> ===Brand relaunch (1999–2003)=== [[File:Sainsbury's Logo.svg|thumb|right|Sainsbury's logo, introduced in 1999]] In June 1999, Sainsbury's unveiled its new [[corporate identity]]. This was developed by 20/20 Design and Strategy, and included *the current company logo, *new corporate colours of "living orange" and blue, *[[Interstate (typeface)|Interstate]] as the company's new general use font, replacing the old all-uppercase font, and *new [[slogan]] "Making life taste better", created by [[M&C Saatchi]], which replaced its old slogan from the 1960s, * new staff uniforms.<ref>{{cite web |title=Waiting for a better taste |url=https://www.designweek.co.uk/issues/10-june-1999/waiting-for-a-better-taste/ |website=Design Week |date=11 June 1999}}</ref><ref>{{cite news|first=Alexandra|last=Jardine|title=Sainsbury's overhauls its image for fightback|work=Marketing|publisher=Haymarket Publishing Services|date=10 June 1999}}</ref><ref>{{cite news|first=Kathy|last=Marks|title=Dowdy Sainsbury to rebuild image|work=The Independent|publisher=Newspaper Publishing|page=4|date=3 June 1999|url=https://www.independent.co.uk/news/dowdy-sainsbury-to-rebuild-image-1097701.html}}</ref> The strapline was dropped in May 2005, and replaced in September of that year by "Try something new today." This new brand statement was created by [[AMV BBDO|Abbott Mead Vickers BBDO]]. While the Interstate font was used almost exclusively for many years, the company introduced another informal font in 2005, which is used in a wide range of advertising and literature.<ref>{{cite web|url=http://www.campaignlive.co.uk/article/sainsburys-backs-try-something-new-today-10m-drive-starring-jamie-oliver/517455|title=Sainsbury's backs 'try something new today' with £10m drive starring Jamie Oliver|date=19 September 2005|publisher=Campaign Live|access-date=11 April 2017|archive-date=12 April 2017|archive-url=https://web.archive.org/web/20170412062105/http://www.campaignlive.co.uk/article/sainsburys-backs-try-something-new-today-10m-drive-starring-jamie-oliver/517455|url-status=live}}</ref> In 1999, Sainsbury's acquired an 80.1% share of [[Egyptian Distribution Group]] SAE, a retailer in Egypt with one hundred shops and 2,000 employees. However, poor profitability led to the sale of this share in April 2001.<ref>{{cite news|title=Sainsbury's pulls out of Egypt|work=BBC News|date=9 April 2001|url=http://news.bbc.co.uk/1/hi/business/1268099.stm|access-date=28 August 2006|archive-date=28 November 2006|archive-url=https://web.archive.org/web/20061128020941/http://news.bbc.co.uk/1/hi/business/1268099.stm|url-status=live}}</ref> On 8 October 1999, the CEO [[Dino Adriano]] lost control of the core supermarket business within the United Kingdom, instead assuming responsibility for the rest of the group. David Bremner became head of the supermarkets in the United Kingdom. This was "derided" by the city<ref>{{cite news|first=Nigel|last=Hope|title=City derides Sainsbury's boardroom reshuffle|work=The Independent|page=18|date=9 August 1999}}</ref> and described as a "fudge".<ref name="Davisappointed">{{cite news|first=Andrew|last=Wilson|title=Davis returns to the checkouts;Sainsbury appoints new chief executive|work=The Herald|publisher=Scottish Media Newspapers|page=22|date=15 January 2000}}</ref> On 14 January 2000 Sainsbury's reversed this decision by announcing the replacement of Adriano by [[Sir Peter Davis]] effective from March.<ref name="Davisappointed" /> Davis was CEO between 2000 and 2004, with his appointment well received by investors and analysts.<ref>{{cite news|first=Saeed|last=Shah|title=Sir Peter Davis brought back to take helm at Sainsbury's|work=The Independent|publisher=Newspaper Publishing|page=19|date=15 January 2000}}</ref> In his first two years, he exceeded profit targets, although by 2004 the group had suffered a decline in performance relative to its competitors and was demoted to third in the groceries market within the United Kingdom. Davis also oversaw an almost £3 billion upgrade of shops, distribution and IT equipment, entitled 'Business Transformation Programme', but his successor would later reveal that much of this investment was wasted and he failed in his key goal – improving availability. Part of this investment saw the construction of four fully automated depots, which at £100 million each cost four times more than standard depots.<ref name="depots">{{cite news|first=Abigail|last=Townsend|title=How the 'Newbury process' turned Sainsbury's round|url=http://www.findarticles.com/p/articles/mi_qn4159/is_20060423/ai_n16212212|archive-url=https://web.archive.org/web/20150924121604/http://www.findarticles.com/p/articles/mi_qn4159/is_20060423/ai_n16212212|url-status=dead|archive-date=24 September 2015|work=The Independent on Sunday|publisher=Independent Newspapers|date=23 April 2006|access-date=8 February 2007 }}</ref> In 2001, Sainsbury's moved into its current headquarters at Holborn, London. Sainsbury's previously occupied Stamford House and twelve other buildings around [[Southwark]]. The accounting department remained separate at [[Streatham]]. The building was designed by architectural firm [[Foster and Partners]], and had been developed on the former [[Trinity Mirror|Mirror Group]] site for Andersen Consulting (now [[Accenture]]); Sainsbury's acquired the 25-year lease when Accenture pulled out.<ref>{{cite news|first=Nigel|last=Cope|title=Sainsbury's looks to sell HQ for £100m after move to Holborn Circus|url=https://www.independent.co.uk/news/business/news/sainsburys-looks-to-sell-hq-for-pound100m-after-move-to-holborn-circus-627769.html|work=The Independent|publisher=Independent Newspapers|date=9 December 2000|access-date=9 November 2008|location=London}}</ref> Sainsbury's was a founding member of the [[Nectar (loyalty card)|Nectar]] loyalty card scheme, which was launched in September 2002, in conjunction with [[Debenhams]], [[Barclaycard]] and [[BP]]; Debenhams, Barclaycard and BP have all subsequently left the scheme, although until the chain's demise Nectar points continued to be awarded for online purchases at Debenhams made through the Nectar app. The Nectar scheme replaced the Sainsbury's Reward Card; accrued points were transferred over.<ref>{{cite news|title=Technical glitch sours Nectar launch|url=http://news.bbc.co.uk/1/hi/business/2263614.stm|work=BBC News|date=17 September 2002|access-date=9 November 2008|archive-date=24 February 2009|archive-url=https://web.archive.org/web/20090224161415/http://news.bbc.co.uk/1/hi/business/2263614.stm|url-status=live}}</ref> In January 2003, [[Wm Morrison Supermarkets]] (trading as Morrisons) made an offer for the [[Safeway (UK)|Safeway]] group, prompting a bidding war between the major supermarkets. The Trade and Industry Secretary, [[Patricia Hewitt]], referred the various bids to the [[Competition Commission]], which reported its findings on 26 September. The Commission found that all bids, with the exception of Morrisons, would "operate against the public interest". As part of the approval Morrisons was to dispose of 53 of the combined group's shops.<ref>{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9F05E4D7123DF934A1575AC0A9659C8B63|title=Britain Blocks Big Chains From Taking Over Safeway|newspaper=The New York Times|date=27 September 2003|access-date=22 December 2015|archive-date=19 July 2022|archive-url=https://web.archive.org/web/20220719015246/https://www.nytimes.com/2003/09/27/business/international-business-britain-blocks-big-chains-from-taking-over-safeway.html|url-status=live}}</ref> In May 2004, Sainsbury's announced that it would acquire fourteen of these shops, thirteen Safeway shops and one Morrisons outlet, located primarily in the Midlands and the North of England.<ref>{{cite news|first=Susie|last=Mesure|title=Sainsbury's buys 14 supermarkets from Morrisons|url=https://www.independent.co.uk/news/business/news/sainsburys-buys-14-supermarkets-from-morrisons-563478.html|work=The Independent|date=15 May 2004|access-date=9 November 2008|location=London|archive-date=16 October 2015|archive-url=https://web.archive.org/web/20151016232407/http://www.independent.co.uk/news/business/news/sainsburys-buys-14-supermarkets-from-morrisons-563478.html|url-status=live}}</ref> ==='Making Sainsbury's Great Again' (2004–2006)=== [[File:J Sainsbury HQ 1.jpg|thumb|J Sainsbury HQ in [[Holborn]] photographed in 2005; the surrounding area has since changed dramatically]] At the end of March 2004, Davis was promoted to chairman and was replaced as CEO by [[Justin King (businessman)|Justin King]]. King joined Sainsbury's from [[Marks & Spencer]] where he was a director with responsibility for its food division and Kings Super Markets, Inc. subsidiary in the United States.<ref name="jskingbio">{{cite press release|title=Sainsbury's appoints new Group Chief Executive|publisher=J Sainsbury plc|date=19 November 2003|url=http://www.j-sainsbury.co.uk/index.asp?PageID=418&subsection=&Year=2003&NewsID=374|access-date=28 October 2006|url-status=dead|archive-url=https://web.archive.org/web/20060925172202/http://www.j-sainsbury.co.uk/index.asp?pageid=418|archive-date=25 September 2006 }}</ref> Schooled in Solihull near Birmingham, and a graduate of the University of Bath, where he took a business administration degree, King was also previously a managing director at Asda with responsibility for hypermarkets.<ref name="jskingbio" /> In June 2004, Davis was forced to quit in the face of an impending shareholder revolt, over his salary and bonuses. Investors were angered by a bonus share award of over £2 million, despite poor company performance. On 19 July 2004, Davis' replacement Philip Hampton was appointed as chairman.<ref>{{cite news|title=Sainsbury retreats on boss's bonus|url=http://news.bbc.co.uk/1/hi/business/3877373.stm|work=BBC News|date=8 July 2004|access-date=9 November 2008|archive-date=21 February 2009|archive-url=https://web.archive.org/web/20090221074110/http://news.bbc.co.uk/1/hi/business/3877373.stm|url-status=live}}</ref> King ordered a direct mail campaign to one million Sainsbury's customers as part of his six-month business review, asking them what they wanted from the company and where the company could improve. This reaffirmed the commentary of retail analysts: the group was not ensuring that shelves were fully stocked, due to the failure of the IT systems introduced by [[Sir Peter Davis|Peter Davis]].<ref>{{cite web|url=https://prezi.com/yxxfdjfdimlb/sainsburys-warehouse-automation-project-failure-2003-2005/|title=Sainsbury's Warehouse Automation project failure 2003–2005|first=Shyama|last=Chandani|date=18 September 2013|publisher=Prezi|access-date=11 April 2017|archive-date=12 April 2017|archive-url=https://web.archive.org/web/20170412142733/https://prezi.com/yxxfdjfdimlb/sainsburys-warehouse-automation-project-failure-2003-2005/|url-status=live}}</ref> On 19 October 2004, King unveiled the results of the business review and his plans to revive the company's fortunes, in a three-year recovery plan entitled 'Making Sainsbury's Great Again'.<ref name="basics">{{cite news|title=Sainsbury's heads back to basics|work=BBC News|date=19 October 2004|url=http://news.bbc.co.uk/1/hi/business/3755066.stm|access-date=9 October 2008|archive-date=19 May 2006|archive-url=https://web.archive.org/web/20060519092412/http://news.bbc.co.uk/1/hi/business/3755066.stm|url-status=live}}</ref> This was generally well received by both the stock market and the media. Immediate plans included laying off over 750 headquarters staff, and the recruitment of around 3,000 shop floor staff, to improve the quality of service and address the firm's main problem: stock availability. The aim would be to increase sales revenue by £2.5 billion by the financial year ending March 2008. Another significant announcement was the halving of the [[dividend]] to increase funds available for price cuts and quality.<ref name="basics" /> King hired Lawrence Christensen as supply chain director in 2004. Previously he was an expert in logistics at [[Safeway (UK)|Safeway]], but left following its takeover by [[Morrisons]]. Immediate supply chain improvements included the reactivation of two distribution centres. At the time of the business review on 19 October 2004, referring to the availability problems, Justin King said "Lawrence hadn't seen anything that he hadn't seen before. He just hadn't seen them all in the same place at the same time".<ref>{{cite news|url=https://www.telegraph.co.uk/finance/2897642/Sainsburys-halves-dividend-as-it-heads-for-losses-of-58m.html |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/2897642/Sainsburys-halves-dividend-as-it-heads-for-losses-of-58m.html |archive-date=12 January 2022 |url-access=subscription |url-status=live|title=Sainsbury's halves dividend as it heads for losses of £58m|date=20 October 2004|newspaper=The Telegraph|access-date=11 April 2017}}{{cbignore}}</ref> In 2006, Christensen commented on the four automated depots introduced by Davis, saying "not a single day went by without one, if not all of them, breaking down... The systems were flawed. They have to stop for four hours every day for maintenance. But because they were constantly breaking down you would be playing catch up. It was a vicious circle."<ref name="depots" /> Christensen said a fundamental mistake was to build four such depots at once, rather than building one which could be thoroughly tested before progressing with the others.<ref>{{cite news|first=Sarah|last=Butler|title=Sainsbury's takes stock of itself after a year of tents and bunkers|work=[[The Times]]|date=8 October 2005}}</ref> In 2007, Sainsbury's announced a further £12 million investment in its depots to keep pace with sales growth and the removal of the failed automated systems from its depots.<ref name="revampdepots">{{cite news|first=Sarah|last=Butler|title=Sainsbury's to revamp depots as sales grow faster than forecast|url=http://business.timesonline.co.uk/article/0,,9074-2543269,00.html|work=[[The Times]]|date=12 January 2007|access-date=9 February 2007|location=London|archive-date=19 July 2022|archive-url=https://web.archive.org/web/20220719015252/https://www.thetimes.co.uk/|url-status=dead}}</ref> In addition, it did a deal with IBM to upgrade its Electronic Point of Sale systems as a result of increased sales.<ref>{{cite web|url=https://www.retail-week.com/technology/sainsburys-to-lift-pos-signage-with-new-system/5001868.article|title=Sainsbury's to lift PoS signage with new system|date=15 April 2009|work=Retail Week|access-date=11 April 2017|archive-date=12 April 2017|archive-url=https://web.archive.org/web/20170412062849/https://www.retail-week.com/technology/sainsburys-to-lift-pos-signage-with-new-system/5001868.article|url-status=live}}</ref> Sainsbury's sold its subsidiary in America, Shaw's, to [[New Albertsons, Inc.|Albertsons]] in March 2004.<ref>{{cite news|last=Potter|first=Mark|author2=Carew, Sinead|title=Sainsbury warns on profit as it checks out of U.S.|agency=Reuters|date=26 March 2004|url=http://uk.biz.yahoo.com/040326/80/epk5d.html|access-date=11 October 2006|archive-url=https://web.archive.org/web/20041102154730/http://uk.biz.yahoo.com/040326/80/epk5d.html|archive-date=2 November 2004}}</ref> Also in 2004 Sainsbury's expanded its share of the [[convenience shop]] market through acquisitions.<ref>{{cite press release|title=Sainsbury's announces acquisition of convenience store operator|publisher=J Sainsbury plc|date=29 April 2005|url=http://www.j-sainsbury.co.uk/index.asp?PageID=424&subsection=&Year=2005&NewsID=539|access-date=11 October 2006|url-status=dead|archive-url=https://web.archive.org/web/20070927035215/http://www.j-sainsbury.co.uk/index.asp?PageID=424&subsection=&Year=2005&NewsID=539|archive-date=27 September 2007 }}</ref> After the launch of King's recovery programme, the company reported nineteen consecutive quarters of sales growth, most recently in October 2009.<ref name="janquarter">{{cite news|first=Angela|last=Jameson|title=Sainsbury's sales rise defies retail gloom|url=http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article3163999.ece|work=[[The Times]]|date=10 January 2008|access-date=10 January 2008|location=London|archive-date=11 June 2011|archive-url=https://web.archive.org/web/20110611211011/http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article3163999.ece|url-status=dead}}</ref> Early sales increases were credited to solving problems with the company's distribution system.<ref>{{cite news|title=Improved supply lifts Sainsbury's|work=BBC News|date=24 March 2005|url=http://news.bbc.co.uk/1/hi/business/4378035.stm|access-date=11 October 2006|archive-date=11 March 2006|archive-url=https://web.archive.org/web/20060311065916/http://news.bbc.co.uk/1/hi/business/4378035.stm|url-status=live}}</ref> Later sales improvements were put down to price cuts and the company's focus on fresh and healthy food.<ref>{{cite news|last=Sanderson|first=Rachel|title=Healthy foods help Sainsbury sales top forecasts|agency=Reuters|date=11 October 2006|url=https://collagenpro.com/healthy-foods-help-sainsbury-sales-top-forecasts/|archive-url=https://web.archive.org/web/20191014080754/https://collagenpro.com/healthy-foods-help-sainsbury-sales-top-forecasts/|url-status=dead|archive-date=14 October 2019|access-date=11 October 2006 }}</ref> ===Takeover bids (2007)=== On 2 February 2007, after months of speculation about a private equity bid, [[CVC Capital Partners]], [[Kohlberg Kravis Roberts]] (KKR) and [[Blackstone Group]] announced that they were considering a bid for Sainsbury's.<ref>{{cite news|title=Bid talk lifts Sainsbury's shares|url=http://news.bbc.co.uk/1/hi/business/6323371.stm|work=BBC News|date=2 February 2007|access-date=23 April 2007|archive-date=17 February 2007|archive-url=https://web.archive.org/web/20070217113929/http://news.bbc.co.uk/1/hi/business/6323371.stm|url-status=live}}</ref> The consortium grew to include [[Goldman Sachs]] and [[Texas Pacific Group]]. On 6 March 2007, with a formal bid yet to be tabled, the Takeover Panel issued a bid deadline of 13 April.<ref>{{cite news|first=Neelam|last=Verjee|author2=Hawkes, Steve|author3=Seib, Christine|title=Tchenguiz buys 3% Sainsbury's stake as consortium is hurried|work=[[The Times]]|page=48|date=7 March 2007}}</ref> On 4 April, KKR left the consortium to focus on its bid for [[Alliance Boots]].<ref name="ftbid">{{cite news|first=Tom|last=Braithwaite|title=Private equity bid founders on family|work=Financial Times|page=15|date=14 April 2007|display-authors=etal}}</ref> On 5 April, the consortium submitted an "indicative offer" of 562p a share to the company's board. After discussions between Sir Philip Hampton and the two largest Sainsbury family shareholders [[Lord Sainsbury of Turville]] and [[Lord Sainsbury of Preston Candover]] the offer was rejected.<ref name="ftbid" /> On 9 April, the indicative offer was raised to 582p a share; however, this too was rejected. This meant the consortium could not satisfy its own preconditions for a bid, most importantly 75% shareholder support; the combined Sainsbury family holding at the time was 18%.<ref name="withdraw">{{cite news|first=Sarah|last=Butler|title=CVC withdraws £10 billion offer for Sainsbury's|url=http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article1640537.ece|work=[[The Times]]|date=11 April 2007|access-date=23 April 2007|location=London|archive-date=11 June 2011|archive-url=https://web.archive.org/web/20110611211038/http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article1640537.ece|url-status=dead}}</ref> Lord Sainsbury of Turville, who then held 7.75% of Sainsbury's, stated that he could see no reason why the Sainsbury's board would even consider opening its books for due diligence for anything less than 600p per share.<ref name="intervene">{{cite news|first=James|last=Moore|title=Sainsbury family intervenes in bid|url=https://www.independent.co.uk/news/business/news/sainsbury-family-intervenes-in-bid-443624.html|work=The Independent|date=6 April 2007|access-date=11 November 2008|location=London}}</ref> Lord Sainsbury of Preston Candover, with just under 3%, was more extreme than his cousin, and refused to sell at any price.<ref>{{cite news|title=Sainsbury deadlock as family holds out|url=http://www.ft.com/cms/s/0/eecce54a-e6ff-11db-9034-000b5df10621.html|work=Financial Times|date=10 April 2007|access-date=11 November 2008|archive-date=24 September 2015|archive-url=https://web.archive.org/web/20150924150812/http://www.ft.com/cms/s/0/eecce54a-e6ff-11db-9034-000b5df10621.html|url-status=live}}</ref> He believed any offer at that stage of Sainsbury's recovery was likely to undervalue the business,<ref name="intervene" /> and with private equity seeking high returns on their investments, saw no reason to sell, given that the current management, led by Justin King, could deliver the extra profit generated for the benefit of existing investors.<ref>{{cite news|title=Sainsbury must now justify the revaluation which private equity bid has sparked|url=https://www.independent.co.uk/news/business/comment/jeremy-warners-outlook-sainsbury-must-now-justify-the-revaluation-which-the-private-equity-bid-has-sparked-444335.html|work=The Independent|date=12 April 2007|access-date=11 November 2008|location=London}}</ref> He claimed the bid 'brought nothing to the business', and that high levels of debt would significantly weaken the company and its competitive position in the long term, which would have an adverse effect on Sainsbury's stakeholders.<ref>{{cite news|first=Harry|last=Wallop|title=Lord Sainsbury speaks out over equity bid|url=https://www.telegraph.co.uk/finance/2807202/Lord-Sainsbury-speaks-out-over-equity-bid.html |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/2807202/Lord-Sainsbury-speaks-out-over-equity-bid.html |archive-date=12 January 2022 |url-access=subscription |url-status=live|work=The Daily Telegraph|date=13 April 2007|access-date=11 November 2008|location=London}}{{cbignore}}</ref> On 11 April, the CVC-led consortium abandoned its offer, stating that "it became clear the consortium would be unable to make a proposal that would result in a successful offer."<ref name="withdraw" /> In May 2007, Sainsbury's identified five areas of growth: Growth of non-food ranges; opening of new convenience shops and growth of online home delivery and banking operations; Expansion of supermarket space through new shops and development of the company's "largely underdeveloped shop portfolio"; and "active property management".<ref>{{cite web|title=Corporate overview|url=http://www.j-sainsbury.co.uk/index.asp?pageid=12|publisher=Sainsbury's|access-date=11 November 2008|url-status=dead|archive-url=https://web.archive.org/web/20081023054607/http://www.j-sainsbury.co.uk/index.asp?pageid=12|archive-date=23 October 2008 }}</ref> On 25 April 2007, Delta Two, a Qatari investment company, bought a 14% stake in Sainsbury's causing its share price to rise 7.17%, and then increased its holding to 17.6%. Its interest in Sainsbury's is thought to centre on its property portfolio. It increased its stake to 25% in June 2007.<ref>{{cite news|title=Huge share deal lifts Sainsbury's|work=BBC News|date=25 April 2007|url=http://news.bbc.co.uk/1/hi/business/6590879.stm|access-date=9 November 2008|archive-date=6 October 2007|archive-url=https://web.archive.org/web/20071006020243/http://news.bbc.co.uk/1/hi/business/6590879.stm|url-status=live}}</ref> On 18 July 2007, BBC News reported that Delta Two had tabled a conditional bid proposal.<ref>{{cite news|title=Qatar firm tables Sainsbury's bid|work=BBC News|date=18 July 2007|url=http://news.bbc.co.uk/1/hi/business/6905040.stm|access-date=9 November 2008|archive-date=18 August 2007|archive-url=https://web.archive.org/web/20070818064823/http://news.bbc.co.uk/1/hi/business/6905040.stm|url-status=live}}</ref> Paul Taylor, the principal of Delta Two, flew David and John Sainsbury to [[Sardinia]] to reveal and discuss the potential bid which amounted to 600p per share.<ref>{{cite news|title=Shopping for Sainsbury's|work=[[The Times]]|date=22 July 2007|url=https://www.thetimes.com/travel/destinations/middle-east-travel/qatar/shopping-for-sainsburys-gdg5mx35rq7|access-date=9 November 2008|location=London|first=Jenny|last=Davey|archive-date=2 May 2018|archive-url=https://web.archive.org/web/20180502211827/https://www.thetimes.co.uk/article/shopping-for-sainsburys-gdg5mx35rq7|url-status=live}}</ref> The family had reservations about the price of the bid. They were also concerned about the proposed structure, which involved splitting the business into an operating company and a highly leveraged property company. They were additionally concerned about adequacy of funding, both for the bid and for the company's pension scheme.<ref>{{cite news|title=Sainsbury family still reluctant to sell|work=The Daily Telegraph|date=24 September 2007|url=https://www.telegraph.co.uk/finance/markets/2816347/Sainsbury-family-still-reluctant-to-sell.html |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/markets/2816347/Sainsbury-family-still-reluctant-to-sell.html |archive-date=12 January 2022 |url-access=subscription |url-status=live|access-date=9 November 2008|location=London|first=James|last=Hall}}{{cbignore}}</ref> On 5 November 2007, it was announced Delta Two had abandoned its takeover bid due to the "[[credit crunch|deterioration of credit markets]]" and concerns about funding the company's pension scheme.<ref>{{cite news|title=Sainsbury's takeover bid dropped|work=BBC News|date=5 November 2007|url=http://news.bbc.co.uk/1/hi/business/7078441.stm|access-date=9 November 2008|archive-date=19 July 2022|archive-url=https://web.archive.org/web/20220719015247/http://news.bbc.co.uk/1/hi/business/7078441.stm|url-status=live}}</ref> ===Administrative changes=== [[File:Sainsbury's on the Headrow.jpg|thumb|Sainsbury's in the former [[Allders]] branch on [[The Headrow]] in [[Leeds city centre]]]] In January 2008, Sainsbury's brought the number of its supermarkets in Northern Ireland to eleven, with the purchase of two Curley's Supermarkets in Dungannon and Belfast.<ref>{{cite news|title=Retail giant buys family business|url=http://news.bbc.co.uk/1/hi/northern_ireland/7190661.stm|work=BBC News|date=16 January 2008|access-date=16 January 2008|archive-date=19 January 2008|archive-url=https://web.archive.org/web/20080119055817/http://news.bbc.co.uk/1/hi/northern_ireland/7190661.stm|url-status=live}}</ref><ref>{{cite press release|title=Sainsbury's in deal with Curley's Supermarket|publisher=Curley's Supermarkets|date=16 January 2008|url=http://www.curleys.co.uk/curleys%20press%20release%20jan%2016th%202008.doc|format=Microsoft Word|access-date=16 January 2008|url-status=dead|archive-url=https://web.archive.org/web/20080227193831/http://www.curleys.co.uk/curleys%20press%20release%20jan%2016th%202008.doc|archive-date=27 February 2008 }}</ref><ref>{{cite press release|title=Sainsbury's to Buy North Grocer|newspaper=The Irish Times|date=16 January 2008|access-date=9 November 2008|url=http://www.irishtimes.com/newspaper/breaking/2008/0116/breaking17.htm }}</ref> In November 2007, Sainsbury's centralised its HR department, relocating to the 17th and 18th floors of the [[Manchester Arndale Centre]] to form a Shared Service Centre, which was initially trialled to deal with Recruitment in Scotland and was later rolled out to the whole of the United Kingdom. July 2009 saw the HR Shared Service Centre in Manchester expand to include most HR Processes in its Colleague Administration Department and Occupational Health enquiries in a dedicated unit.<ref>{{cite web|url=http://www.personneltoday.com/hr/sainsburys-to-launch-a-human-resources-shared-services-function-to-improve-its-service/|title=Sainsbury's to launch a human resources shared services function to improve its service|date=26 July 2007|publisher=Personnel Today|access-date=11 April 2017|archive-date=31 August 2017|archive-url=https://web.archive.org/web/20170831221015/http://www.personneltoday.com/hr/sainsburys-to-launch-a-human-resources-shared-services-function-to-improve-its-service/|url-status=live}}</ref> Since April 2012, the centre has begun a gradual relocation to its new offices in the centre of Lincoln, along with a rebrand as Sainsbury's HR Services.<ref>{{cite web |last=Vorster |first=Gareth |date=26 July 2007 |title=Sainsbury's to launch a human resources shared services function to improve its service |url=https://www.personneltoday.com/hr/sainsburys-to-launch-a-human-resources-shared-services-function-to-improve-its-service/ |archive-url=https://web.archive.org/web/20130614113733/http://www.personneltoday.com/articles/26/07/2007/41712/sainsburys-to-launch-a-human-resources-shared-services-function-to-improve-its.htm |archive-date=14 June 2013 |access-date=21 July 2024 |website=Personnel Today }}</ref> ===Developing business (2009–2016)=== In March 2009, Sainsbury's reached an agreement to buy 24 shops from [[The Co-operative Group]], 22 of which were [[Somerfield]] shops, which the group was required to sell as a condition of its takeover of Somerfield.<ref>{{cite press release|title=Sainsbury's goes on £83m coop spree|work=The Guardian|date=4 March 2009|access-date=23 May 2009|url=https://www.theguardian.com/business/2009/mar/04/j-sainsbury-supermarkets|location=London|first=Zoe|last=Wood|archive-date=27 June 2015|archive-url=https://web.archive.org/web/20150627023302/http://www.theguardian.com/business/2009/mar/04/j-sainsbury-supermarkets|url-status=live}}</ref> A further nine shops were purchased from The Co-operative Group in June 2009. These were concentrated in West Wales, the North of England and Scotland, where Sainsbury's market share is low.<ref>{{cite news |date=17 June 2009 |title=Sainsbury's targets faster growth |url=http://news.bbc.co.uk/2/hi/business/8104425.stm |archive-url=https://web.archive.org/web/20220719015248/http://news.bbc.co.uk/1/hi/business/8104425.stm |archive-date=19 July 2022 |access-date=21 July 2024 }}</ref> In May 2010, Sainsbury's confirmed a multimillion-pound deal with the [[London Organising Committee of the Olympic and Paralympic Games]] (LOCOG) to be the main sponsor of the [[2012 Paralympic Games]]. Under the deal, Sainsbury's sold Paralympic merchandise and became involved in high-profile events, such as the torch relay. It became one of only two sponsors able to take advantage of the limited branding allowed within the Games. The promotional rights did not extend to the Olympics. After the Paralympic Games, the company decided to sponsor the [[British Paralympic Association]] through to Rio 2016.<ref>{{cite web|url=http://www.paralympic.org/news/bpa-signs-sainsbury-s-partner-through-rio-2016|title=BPA signs Sainsbury's as partner through Rio 2016 | IPC|publisher=Paralympic.org|date=14 September 2012|access-date=18 March 2013|archive-date=8 May 2013|archive-url=https://web.archive.org/web/20130508133618/http://paralympic.org/news/bpa-signs-sainsbury-s-partner-through-rio-2016|url-status=live}}</ref> On 30 November 2011, Sainsbury's reached the first milestone in its ''Vision for 2020'', by opening its thousandth self-service shop in [[Irvine, North Ayrshire|Irvine]], Scotland. To celebrate this, Sainsbury's doubled its staff discount to 20% for the first four days of December.<ref>{{cite web |last=Lawson |first=Alex |date=30 November 2011 |title=In pictures: A trip through history as JS opens 1,000th store |url=https://www.retail-week.com/in-pictures-a-trip-through-history-as-js-opens-1000th-store/5031693.article |archive-url=https://web.archive.org/web/20160330113307/http://www.retail-week.com/home/food/in-pictures-a-trip-through-history-as-js-opens-1000th-store/5031693.article |archive-date=30 March 2016 |access-date=21 July 2024 |website=Retail Week }}</ref> In January 2014, Sainsbury's completed the purchase of the 50% share in [[Sainsbury's Bank]], owned by Lloyds Banking Group.<ref>{{cite web|url=https://www.theguardian.com/money/2013/may/08/sainsburys-full-control-banking-arm|title=Sainsbury's to take full control of banking arm|date=8 May 2013|work=The Guardian|access-date=26 May 2020|archive-date=6 August 2020|archive-url=https://web.archive.org/web/20200806193138/https://www.theguardian.com/money/2013/may/08/sainsburys-full-control-banking-arm|url-status=live}}</ref> In July 2014, the company began powering one of its shops by converting [[food waste]] into bio methane gas to generate electricity. The group became the first retailer to come off the [[National Grid (Great Britain)|National Grid]] by its own means.<ref name="SainsburysEnergy">{{cite news|title=Sainsbury's shop to be powered solely by food waste|url=https://www.theguardian.com/environment/2014/jul/21/sainsburys-store-powered-food-waste|access-date=23 July 2014|work=[[The Guardian]]|location=London|archive-date=23 July 2014|archive-url=https://web.archive.org/web/20140723043727/http://www.theguardian.com/environment/2014/jul/21/sainsburys-store-powered-food-waste|url-status=live}}</ref> In July 2016, Arcus FM extended its facilities management contract with Sainsbury's, securing a ten-year renewal. Arcus won the initial contract in 2009, and saw the contract extended in 2011.<ref>{{cite web|url=http://www.fm-world.co.uk/news/business-news/arcus-lands-10-year-sainsburys-extension/|title=ARCUS LANDS 10-YEAR SAINSBURY'S EXTENSION|publisher=fm-world.co.uk|date=8 July 2016|access-date=2 December 2016|archive-date=3 December 2016|archive-url=https://web.archive.org/web/20161203060741/http://www.fm-world.co.uk/news/business-news/arcus-lands-10-year-sainsburys-extension/|url-status=live}}</ref> ===Multi-channel retailer and restructuring (2016–present)=== After a four-month pursuit, in April 2016 [[Home Retail Group]] agreed to be taken over by Sainsbury's for £1.4 billion. Sainsbury's completed the acquisition in September 2016.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-35941233|title=Sainsbury's wins battle to buy Argos|work=BBC News|date=1 April 2016|access-date=21 July 2018|archive-date=2 August 2018|archive-url=https://web.archive.org/web/20180802112948/https://www.bbc.co.uk/news/business-35941233|url-status=live}}</ref><ref>{{cite web|url=http://www.retailgazette.co.uk/blog/2016/09/sainsburys-acquisition-of-argos-parent-company-now-complete|title=Sainsbury's acquisition of Argos parent company now complete|work=Retail Gazette|date=2 September 2016|access-date=2 September 2016|archive-date=8 December 2016|archive-url=https://web.archive.org/web/20161208160102/https://www.retailgazette.co.uk/blog/2016/09/sainsburys-acquisition-of-argos-parent-company-now-complete|url-status=live}}</ref> The deal included catalogue chain [[Argos (retailer)|Argos]] and furnishing retailer [[Habitat (retailer)|Habitat]]. As a result, the new Sainsbury's group was organised into four divisions: the core Sainsbury's food retail business; General Merchandising (including Argos) & TU Clothing; Financial Services (Sainsbury's Bank and Argos financial services businesses); and various property investments.<ref>{{cite web|url=https://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/pdf-downloads/sainsburys-ar-2017-financial-statements|title=Financial Statements|date=2 May 2017|website=about.sainsburys.co.uk|publisher=J Sainsbury plc|access-date=10 January 2020|archive-date=29 October 2018|archive-url=https://web.archive.org/web/20181029140423/http://www.about.sainsburys.co.uk/~/media/Files/S/Sainsburys/pdf-downloads/sainsburys-ar-2017-financial-statements|url-status=live}}</ref> Throughout 2016 and 2017 Sainsbury's pursued expansion of its multi-channel strategy, increasing the number of groceries Click and Collect points and online fulfilment locations to serve its online delivery network including opening a [[dark store]] in [[Bromley by Bow]] to serve the London area, increasing geographical coverage of its same-day groceries delivery network and integrating concessions into its shops such as Argos, Habitat, [[Timpson (retailer)|Timpson's]] and [[Starbucks]].<ref>{{cite web|url=https://www.theguardian.com/business/2016/jul/21/sainsburys-hiring-staff-online-delivery-centre-east-london|title=Sainsbury's to hire 900 staff for online delivery centre in east London|first=Sarah|last=Butler|date=21 July 2016|work=The Guardian|access-date=22 March 2018|archive-date=24 January 2018|archive-url=https://web.archive.org/web/20180124005714/https://www.theguardian.com/business/2016/jul/21/sainsburys-hiring-staff-online-delivery-centre-east-london|url-status=live}}</ref> In November 2016, Sainsbury's announced its intention to cut £500 million of costs from its business. In March 2017 400 jobs were cut and 4,000 jobs were re-organized, mainly affecting employees in night shift and commercial operation (cash office and price control) roles.<ref name="telegraph.co.uk">{{cite news|url=https://www.telegraph.co.uk/business/2017/08/05/sainsburys-cost-cuts-threaten-1000-jobs/ |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/business/2017/08/05/sainsburys-cost-cuts-threaten-1000-jobs/ |archive-date=12 January 2022 |url-access=subscription |url-status=live|title=Sainsbury's cost cuts threaten 1,000 jobs|first1=Ben|last1=Marlow|first2=Ashley|last2=Armstrong|date=5 August 2017|access-date=27 February 2019|newspaper=The Telegraph}}{{cbignore}}</ref> In August 2017, 1000 jobs were cut throughout all of its Head Office and support centres, affecting a variety of functions.<ref name="telegraph.co.uk"/> In October 2017, changes to security contracts meant that provider [[Mitie]] reduced the number of [[security officer]]s within shops.<ref>{{cite web|url=https://www.mitie.com/case-studies/retail/a-smarter-way-of-securing-sainsbury-s/#!/|title=A SMARTer way of securing one of the UK's leading supermarkets|publisher=Mitie|access-date=16 March 2018|archive-date=24 January 2018|archive-url=https://web.archive.org/web/20180124071014/https://www.mitie.com/case-studies/retail/a-smarter-way-of-securing-sainsbury-s/#!/|url-status=live}}</ref> In the same month Sainsbury's announced plans to axe all shop-based [[Human resource manager|Human Resource]] employees, including HR managers, payroll clerks, administration clerks and Learning and Development managers, overall affecting 1400 jobs.<ref name="auto">{{cite web|url=https://www.express.co.uk/news/uk/867704/Sainsbury-s-job-cuts-Asda-high-street-supermarkets|title=Sainsbury's AXES 2,000 jobs in £500m cost-cutting drive|first=Mark|last=Chandler|date=17 October 2017|access-date=23 January 2018|archive-date=24 January 2018|archive-url=https://web.archive.org/web/20180124070754/https://www.express.co.uk/news/uk/867704/Sainsbury-s-job-cuts-Asda-high-street-supermarkets|url-status=live}}</ref> Additionally another 600 jobs at its Head Offices were cut.<ref name="auto"/> In January 2018, Sainsbury's announced proposals to overhaul shop management structures which would result in job losses 'in the thousands'.<ref>{{cite news|url=https://www.bbc.co.uk/news/business-42791079|title=Thousands of jobs at risk at Sainsbury's|first=Emma|last=Simpson|work=BBC News|date=2 March 2018|access-date=21 July 2018|archive-date=20 August 2018|archive-url=https://web.archive.org/web/20180820054204/https://www.bbc.co.uk/news/business-42791079|url-status=live}}</ref> On 1 February 2018, Sainsbury's announced the purchase of [[Nectar (loyalty card)|Nectar]] from [[AIMIA]] for £60 million; this gave full control of all Nectar data to Sainsbury's.<ref>{{cite web|url=https://www.ft.com/content/584f106e-0766-11e8-9650-9c0ad2d7c5b5|title=Sainsbury's buys Nectar reward scheme from Aimia for £60m|date=1 February 2018|work=Financial Times|access-date=1 October 2020|archive-date=4 December 2020|archive-url=https://web.archive.org/web/20201204120746/https://www.ft.com/content/584f106e-0766-11e8-9650-9c0ad2d7c5b5|url-status=live}}</ref> In March 2018, Sainsbury's announced that it would be increasing the base rate of pay for its staff to retain the best workers. It said it would increase pay by 15% in the year, spending an extra £100 million on a plan that would also simplify the number of job roles.<ref>{{cite news|url=https://uk.reuters.com/article/uk-sainsbury-pay/sainsburys-to-hike-in-store-staff-pay-by-15-percent-idUKKCN1GI0XJ|title=Sainsbury's raises in-shop pay but axes paid breaks|date=6 March 2016|work=Reuters|access-date=16 March 2018|archive-date=6 March 2018|archive-url=https://web.archive.org/web/20180306142602/https://uk.reuters.com/article/uk-sainsbury-pay/sainsburys-to-hike-in-store-staff-pay-by-15-percent-idUKKCN1GI0XJ|url-status=dead}}</ref> In April 2018, Sainsbury's entered talks with [[Walmart]] about a proposed merger with Asda, which, if approved, could have formed the largest UK supermarket company.<ref>{{cite news|url=https://www.theguardian.com/business/2018/apr/28/sainsburys-and-asda-in-shock-talks-over-10bn-merger-deal|title=Sainsbury's and Asda in shock talks over 10bn merger deal|last=Wood|first=Zoe|work=The Guardian|date=28 April 2018|access-date=30 April 2018|archive-date=29 April 2018|archive-url=https://web.archive.org/web/20180429230046/https://www.theguardian.com/business/2018/apr/28/sainsburys-and-asda-in-shock-talks-over-10bn-merger-deal|url-status=live}}</ref><ref>{{cite news|author=Alan Tovey|url=https://www.telegraph.co.uk/business/2018/04/28/sainsburys-mulls-asda-tie-up-create-supermarket-giant/ |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/business/2018/04/28/sainsburys-mulls-asda-tie-up-create-supermarket-giant/ |archive-date=12 January 2022 |url-access=subscription |url-status=live|title=Sainsbury's in 'advanced' discussions over £10bn-plus merger with Asda to create supermarket giant|newspaper=The Telegraph|date=28 April 2018|access-date=28 April 2018}}{{cbignore}}</ref> Under the proposal, Walmart would have owned 42% of the group, with day-to-day operations being led by the chief executive of Sainsbury's at the time, Mike Coupe. The group also outlined plans to open branches of Argos within Asda shops.<ref>{{cite news|title=Sainsbury's vows Asda deal will cut prices|url=https://www.bbc.co.uk/news/business-43945254|access-date=30 April 2018|work=BBC News|date=30 April 2018|archive-date=30 April 2018|archive-url=https://web.archive.org/web/20180430063952/http://www.bbc.co.uk/news/business-43945254|url-status=live}}</ref> However, the [[Competition and Markets Authority]] (the UK's regulator on anti-competitive practices) said in February 2019 that it could block the merger.<ref>{{cite web|url=https://www.bbc.com/news/business-47303166|title=Sainsbury's-Asda merger in jeopardy|date=20 February 2019|access-date=27 February 2019|work=BBC News|archive-date=27 February 2019|archive-url=https://web.archive.org/web/20190227185110/https://www.bbc.com/news/business-47303166|url-status=live}}</ref> On 25 April 2019, the Competition and Markets Authority blocked the merger and it was abandoned by Sainsbury's.<ref>{{cite web|url=https://www.thegrocer.co.uk/sainsburys/cma-blocks-sainsburys/asda-merger-/592699.article|title=CMA blocks Sainsbury's/Asda merger|first=Ian|last=Quinn|date=25 April 2019|website=The Grocer|access-date=2 May 2019|archive-date=2 May 2019|archive-url=https://web.archive.org/web/20190502134043/https://www.thegrocer.co.uk/sainsburys/cma-blocks-sainsburys/asda-merger-/592699.article|url-status=live}}</ref><ref>{{cite web|url=https://www.proactiveinvestors.co.uk/companies/news/219067/sainsbury-s-and-walmart-s-asda-abandon-merger-after-competition-watchdog-rejects-deal-219067.html|title=Sainsbury's and Walmart's Asda abandon merger after competition watchdog rejects deal|date=25 April 2019|website=Proactiveinvestors UK|access-date=2 May 2019|archive-date=2 May 2019|archive-url=https://web.archive.org/web/20190502133346/https://www.proactiveinvestors.co.uk/companies/news/219067/sainsbury-s-and-walmart-s-asda-abandon-merger-after-competition-watchdog-rejects-deal-219067.html|url-status=live}}</ref> In November 2020, Sainsbury's stated that up to 3,500 jobs were at risk due to the closure of supermarket counters and the closure of further Argos standalone stores.<ref>{{cite web|title=Sainsbury's warns 3,500 jobs could go in supermarket shake-up|url=https://news.sky.com/story/sainsburys-reveals-3-500-jobs-at-risk-in-operational-shake-up-12124100|access-date=5 November 2020|publisher=Sky News|archive-date=5 November 2020|archive-url=https://web.archive.org/web/20201105072405/https://news.sky.com/story/sainsburys-reveals-3-500-jobs-at-risk-in-operational-shake-up-12124100|url-status=live}}</ref> In March 2021, the group announced further restructuring with the loss of 1150 head office and warehousing roles. Office sites Victoria and Saffron House in London, as well as Walsgrave in Coventry, were closed; office space was reduced at other sites at Milton Keynes, Coventry, London and Manchester.<ref>{{cite web|title=1150 jobs at risk as Sainsbury's unveils restructuring proposals|url=https://www.retailgazette.co.uk/blog/2021/03/1150-jobs-at-risk-as-sainsburys-unveils-restructuring-proposals/|access-date=7 June 2021|website=Retail Gazette|date=3 March 2021 |archive-date=7 June 2021|archive-url=https://web.archive.org/web/20210607220953/https://www.retailgazette.co.uk/blog/2021/03/1150-jobs-at-risk-as-sainsburys-unveils-restructuring-proposals/|url-status=live}}</ref> The restructure also included the closure of the company's only [[dark store|online fulfilment centre]] in [[Bromley-by-Bow]], London; with online orders instead being fulfilled by nearby stores with online fulfilment capabilities<ref>{{cite web|title=Sainsbury's to cut 500 Head Office jobs with a further 650 at risk|url=https://www.theguardian.com/business/2021/mar/03/sainsburys-to-cut-500-head-office-jobs-with-a-further-650-at-risk|access-date=7 June 2021|website=The Guardian|date=3 March 2021|archive-date=7 June 2021|archive-url=https://web.archive.org/web/20210607220949/https://www.theguardian.com/business/2021/mar/03/sainsburys-to-cut-500-head-office-jobs-with-a-further-650-at-risk|url-status=live}}</ref> The group reported a £261 million loss in April 2021, citing £485 million of investment in 'additional safety measures' in response to the [[COVID-19 pandemic|Coronavirus pandemic]], additional staffing costs and additional staff bonuses. The group's financial results included the one-off costs of announced restructuring as well as [[write-off|writedowns]] of its estate valuations and banking assets.<ref>{{cite web|title=Sainsbury's slumps to £261 million loss on back of covid costs|url=https://www.theguardian.com/business/2021/apr/28/sainsburys-slumps-to-261m-loss-on-back-of-covid-costs|access-date=7 June 2021|website=The Guardian|date=28 April 2021|archive-date=7 June 2021|archive-url=https://web.archive.org/web/20210607220953/https://www.theguardian.com/business/2021/apr/28/sainsburys-slumps-to-261m-loss-on-back-of-covid-costs|url-status=live}}</ref> The group's new CEO Simon Roberts has started to focus the grocery business on a 'food first strategy'; the company's slogan changed in May 2021 and an advertising campaign followed promoting healthier eating choices and sustainable food, designed to complement the company's partnership of the [[2021 United Nations Climate Change Conference|2021 UN Climate Change Conference]] being held in the UK.<ref>{{cite web|title=Sainsbury's commits to helping the nation make healthier choices as only a quarter of Brits eat five-a-day|url=https://www.about.sainsburys.co.uk/news/latest-news/2021/26-05-21-sainsbury-commits-to-helping-the-nation-make-healthier-choices-as-only-a-quarter-of-brits|access-date=7 June 2021|website=J Sainsbury's plc.|archive-date=31 May 2021|archive-url=https://web.archive.org/web/20210531194410/https://www.about.sainsburys.co.uk/news/latest-news/2021/26-05-21-sainsbury-commits-to-helping-the-nation-make-healthier-choices-as-only-a-quarter-of-brits|url-status=live}}</ref><ref>{{cite web|title=Sainsbury's unveils new brand slogan as it is named Principal Supermarket Partner of COP26|url=https://www.about.sainsburys.co.uk/news/latest-news/2021/25-02-2021-sainsburys-named-principal-supermarket-partner-of-cop26|access-date=7 June 2021|website=J Sainsbury's plc.|archive-date=1 March 2021|archive-url=https://web.archive.org/web/20210301061649/https://www.about.sainsburys.co.uk/news/latest-news/2021/25-02-2021-sainsburys-named-principal-supermarket-partner-of-cop26|url-status=live}}</ref> On 31 October 2024, Sainsbury's announced the sale of its Argos Financial Services cards portfolio to NewDay Group for £720 million ($934 million) as part of its plan to concentrate on its main retail operations.<ref>{{cite web |date=31 October 2024 |title=Sainsbury's sells Argos Financial Services cards portfolio for $934 mln |website=[[Reuters]] |url=https://www.reuters.com/markets/deals/sainsburys-sell-argos-financial-services-cards-portfolio-934-mln-2024-10-31/}}</ref>
Summary:
Please note that all contributions to Niidae Wiki may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Encyclopedia:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)
Search
Search
Editing
Sainsbury's
(section)
Add topic