Editing Sainsbury's (section)

===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>