Sainsbury’s has pulled out of talks to buy the 1,200-strong TM Retail convenience and confectionary store chain.
The decision to walk away from the deal is the first corporate move made by Sainsbury’s new chief executive Justin King, who took over less than two weeks ago.
Shareholders and analysts are waiting for the first indications of how King intends to tackle Sainsbury’s problems and halt sliding sales. Some believe he must slash prices to compete head-on with Tesco and Asda. At the same time there is continued speculation about potential takeover bids.
In the case of TM it is understood that Sainsbury’s, after more detailed evaluations were completed, decided that only 100 stores would fit into its Sainsbury’s Local or Central formats.
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