Sainsbury’s is great again: now what?

It wasn’t that long ago that Justin King was the plucky upstart of the grocery world. Now, after a year of upheaval at its rivals, he’s now the elder statesman. And the stability of Sainsbury’s has played a big part in its success during the recession, when its creative marriage of quality and value really chimed with customers.

Since 2004 King’s mantra has been Making Sainsbury’s Great Again. And from the dark days of the Peter Davis era, that’s been achieved, City quibbles about its relative profitability notwithstanding. But you can’t talk about recovery forever and the question now is what’s next – a question it sought to outline at a strategy day at its flagship Crayford store three weeks ago.

That strategy day was headed by Darren Shapland, the well-liked former financial director who was given a new role in charge of strategy and development last year. At the time, it was widely viewed as an attempt to keep Shapland, viewed as chief executive material, on board. But on Monday, it was announced he was leaving.

His successor, the cerebral ex-consultant Luke Jensen, has some decisions to make about Sainsbury’s future director. We know it wants to put down more space, to grow in non-food, open more convenience stores and to get into services. But you could say the same about any of the big grocers.

Sainsbury’s has dabbled with bolder ideas, from opening standalone sandwich shops to putting a team in China with a view to opening stores there. But nothing’s been backed with any conviction. It has become great again in food by being bold and adventurous. And it’s exactly those qualities the elder statesman King will need to rediscover if Sainsbury’s is to plot a course that is unique and distinctive for its growth phase.

Clarke making his mark

Another grocery retailer with some thorny issues to deal with is new Tesco chief executive Phil Clarke. His move into the hot-seat has coincided with a barrage of criticism from everyone from the residents of Stokes Croft to Ed Miliband and Mary Portas. His strategy video released this week hints that, while the customer will always be number one at Tesco, Clarke knows it needs to work harder to explain that it’s a good corporate citizen. While initiatives like introducing branded clothing are exactly what he needs to do to reinvigorate the now rather functional experience of shopping at Tesco.