David Tyler: Sainsbury’s new chairman is ‘no wallflower’

As Sainsbury’s chief executive Justin King delivers the grocer’s second-quarter update next week, new chairman David Tyler will be in the wings gauging his performance.

But Tyler, who joined the retailer yesterday, was reported as saying after his appointment was announced that he has no intention of being a “wallflower”.

Tyler was widely tipped to take the Sainsbury’s role and many believe it is because of his similarity to outgoing chairman Sir Philip Hampton, who - by developing a strong working relationship with chief executive Justin King - helped return the grocer to success.

While they come from different backgrounds - Tyler, 56, has a strong retail background, and Hampton’s experience is in sectors such as banking, steel and telecoms - they are both former financial directors and are said to have a similar style.

One analyst said: “Tyler is similar in temperament to Hampton - both are very capable, strategic and have a great grasp of detail.”

Tyler brings extensive retail experience to the job. He spent nearly 10 years at GUS from 1997 to 2006 where, according to Credit Suisse analyst Tony Shiret, he “played a blinder”.

Tyler played a key role in the demergers of Experian, Argos and Burberry, says Shiret. He adds: “With a big beast like GUS, he will have coped with many different challenges.”

Peter Jones, chairman and co-founder of headhunter Barracuda, worked with Tyler at what became Home Retail Group. Jones says there are few finance directors who would have had to cope with so much at one company.

He says: “The demerger was extremely complex and he handled it with professionalism as well as extremely advancing shareholder value - and he did all that while running the accounts for a FTSE 100 company.”

Tyler’s performance at GUS is for many, almost flawless. Speaking to many people who knew Tyler in the GUS years only one had a criticism to make, which was that as finance director Tyler had a part in GUS overpaying for Homebase.

In Tyler’s defence, Jones points to the overall job Tyler did at GUS. “The success can be seen in how well those three companies are doing now.”
Jones notes another example ,when Tyler successfully sold GUS’s home shopping arm to the Barclay Brothers in 2003 - a business that was once thought to have little value was sold for £590m.

Many say Tyler is a typical grey suit, favouring professional relationships and maintaining a distance. But as Shiret says: “You’re not paying for sex and violence with David, you’re paying for someone who won’t lose money.”

Tyler maintains a highly professional air but he is personable and good at talking to people at all levels, says Jones. “At the right time, he is approachable and good at listening,” he maintains.

Many analysts believe Tyler will work well at Sainsbury’s. Collins Stewart European retail analyst Greg Lawless says he is a “very solid, experienced retailer, and will bring a strategic dimension to the business”.

Shiret adds that Tyler represents “safe hands” and along with Justin King and finance director Darren Shapland, will make “a good combination”. He adds: “When you combine someone who can sell stuff, someone who will keep finances under control and someone to direct on strategy, you shouldn’t go far wrong.”
With Tyler’s experience at GUS, one analyst says he has all the right skills should Sainsbury’s receive any further bid offers. And Sainsbury’s certainly wouldn’t want a wallflower if that
happened again.