Further cuts at head office are likely, and the location is also under review

Further cuts at head office are likely, and the location is also under review

Sainsbury’s newly-appointed chief executive, Justin King, is considering cutting jobs at the London head office, as well as some store closures, in an effort to turn around the company’s poor performance.

King will present a business review on October 19 to City analysts and has selected McKinsey consultants to help with the root-and-branch review of the business. Sainsbury’s has been losing market share to its rivals over the last 18 months despite investing £3 billion in infrastructure.

Former chief executive Sir Peter Davis’s three-year plan failed to get the right products on the shelf and attract shoppers. Recent TNS data revealed that Sainsbury’s market share had dropped to 15.3 per cent in comparison to 15.9 per cent in September 2003.

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