Opinion: Sainsbury’s boss Coupe’s cool-headed style bodes well for Argos deal

Coupe has displayed that unflappability consistently since taking the reins in 2014, when it was clear that the near-unprecedented disruption in food retail would buffet JS as well as its competitors.

Last week’s fourth-quarter update brought the welcome news that Sainsbury’s had broken its run of like-for-like sales declines with the first uplift in two years.

While Sainsbury’s like-for-likes had suffered, as did those of the other big four grocers in intensely tough conditions, the grocer has been on an encouraging trend for a while.

Kantar’s latest data, for instance, showed Sainsbury’s was only one of the big four to increase sales. They have now advanced for eight months in a row, the longest run of sales growth among the big four in two years.

That is testament to the pretty seamless transition of leadership to Coupe, who of course had many years of experience at Sainsbury’s, and to the strength of his team.

“Since taking the helm, Coupe has been careful not to allow any erosion of the principles that underlie Sainsbury’s success”

Since taking the helm, Coupe has been careful not to allow any erosion of the principles that underlie Sainsbury’s success. While prices have come down, Sainsbury’s reputation for quality is undiminished.

And the turbulent market conditions have not prompted the grocer to pull in its horns and focus only on the basics.

There have been experiments in stores, such as a pilot convenience format and relaid supermarkets to reflect changing food-buying habits, and opportunities in general merchandise, such as the retailer’s Tu clothing range.

The right blend

That track record of blending old and new is reassuring as Sainsbury’s prepares to acquire Argos-owner Home Retail with the ambition of creating a food and general merchandise giant.

If all goes well the deal should bring an enhanced range, greater multichannel capabilities and the opportunity for many more Argos shop-in-shops in Sainsbury’s stores.

“That track record of blending old and new is reassuring as Sainsbury’s prepares to acquire Argos-owner Home Retail”

The intellectual rationale for the deal stood up to scrutiny, but some of the biggest questions were about execution.

How easily could the two giant, and very different, businesses be put together? Would that challenge end up being a distraction from the core Sainsbury’s business as the grocers continue to slug it out between themselves?

Sainsbury’s improving like-for-likes in the fourth quarter, which covered the period to March 12 when the potential Argos deal was in the open, being widely discussed and lately looked as if it might be scuppered by the surprise entry into the fray of Steinhoff, shows that eyes at Sainsbury’s remained on the ball.

That in turn gives greater confidence that, assuming the Argos deal goes ahead, it should be pretty smoothly handled by cool-head Coupe.