The City has welcomed Sainsbury’s announcement that Marks and Spencer’s 42 year-old executive director for food Justin King will succeed Sir Peter Davis as group chief executive next March.
“Good news? Well, yes - he is far superior to anyone Sainsbury has at present,” said Richard Ratner at Seymour Pierce.
Sainsbury’s share price reflected this opinion, up 5% despite disappointing interims.
Mark Hughes of Numis Securities described it as a positive appointment. “King has the experience of working with an offer marketed at the middle classes and at the higher end of quality. People will look to him for top line growth and reversal of market share attrition.”
Another analyst said King’s background, particularly his time at Asda, would make investors give JS the benefit of the doubt over its current weak operating performance.
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