Suppliers have welcomed the appointment of “commercial animal” Mike Coupe as Sainsbury’s new CEO, claiming the move will ensure it remains ‘business as usual’ for the chain.
Sainsbury’s group commercial director was named CEO designate this week as Justin King revealed plans to step down in July after 10 years at the helm.
Suppliers described Coupe, who joined Sainsbury’s in October 2004, as a “very safe pair of hands” and “second only to Justin” in the retailer’s turnaround. “Mike has been so key in Sainsbury’s development that it should really be business as usual,” one supplier told The Grocer.
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Another leading own-label supplier said: “Mike has worked hand in hand with Justin for years and the key thing for him is to carry on the excellent work they have been doing while trying to put his own stamp on the leadership. I’m glad they’ve gone for somebody who knows the business inside out.”
But another supplier warned King would be a tough act to follow. “Mike is a commercial animal - tough commercially, but I would have to see a different side to him to fill Justin’s charismatic shoes,” he said. “There will be the hope that Mike will carry on the good work Justin has done.”
NFU president Peter Kendall added: “Justin has driven real changes in sourcing. Mike Coupe has played an integral part in this and we hope under his leadership Sainsbury’s will go from strength to strength.”
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Coupe has been the key figure in driving own label at Sainsbury’s. Its own-label sales are growing at more than twice the rate of branded goods, with By Sainsbury’s up more than 6% year-on-year and Taste the Difference hitting £1bn in annual sales. He also led the revamps of both Taste the Difference in 2010 and By Sainsbury’s in 2011. An overhaul of its Basics value range is underway.
Coupe has not been afraid to push own label at the expense of brands, and Sainsbury’s launched a new coupon system this week plugging own label (see left). In July last year, Sainsbury’s slashed the number of Diageo promotions following a “huge rift” over Sainsbury’s own-label strategy.
Sainsbury’s in own-label voucher push
Sainsbury’s launched a fresh assault on brands this week.
New ‘Which will you choose?’ vouchers offer bonus Nectar points on an own-label line or branded equivalent, while flagging up the price difference.
The print-at-till vouchers include 60 Nectar points on either Green Giant sweetcorn original 3 x 340g for £2.49 or By Sainsbury’s naturally sweet sweetcorn in water 3 x 325g for “only £1.69”. The own-label line also receives twice as much space on the voucher.
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