Misplaced Pages

#807192

61-566: Principal members of the founding family of the UK supermarket chain Sainsbury's are: No family member works for the company, although John Davan Sainsbury was the Life President of the firm at his death in 2022. The last family member to work for the company was Tim Sainsbury who retired as a non-executive director in 1999. The last family chairman was David Sainsbury who retired as chairman of

122-486: A formal bid yet to be tabled, the Takeover Panel issued a bid deadline of 13 April. On 4 April, KKR left the consortium to focus on its bid for Alliance Boots . On 5 April, the consortium submitted an "indicative offer" of 562p a share to the company's board. After discussions between Sir Philip Hampton and the two largest Sainsbury family shareholders Lord Sainsbury of Turville and Lord Sainsbury of Preston Candover

183-449: A grocer's branch at 12 Kingsland High Street, Dalston . Every shop offered home delivery, as there were fewer cars in those days. Sites were carefully chosen, with a central position in a parade selected in preference to a corner shop. This allowed a larger display of products, which could be kept cooler in summer, which was important as there was no refrigeration. By the time John James Sainsbury died in 1928, there were over 128 shops. He

244-619: A minor heart attack. In the Second World War , many of the men who worked for Sainsbury's were called to perform National Service and were replaced by women. The war was a difficult time for Sainsbury's, as most of its shops were trading in the London area and were bombed or damaged. Turnover fell to half the prewar level. Food was rationed, and one particular shop in East Grinstead was so badly damaged on Friday 9 July 1943 that it had to move to

305-590: A minority stake in another supermarket group, Giant Food, based in Washington, DC , although this shareholding was subsequently sold when Ahold of the Netherlands made a full bid for the company. An arrangement in late 1995 with Supermarket Direct made Sainsbury's the first major grocery retailer in the UK to offer a home delivery service. In May 1996, the company reported its first fall in profits for 22 years. David Sainsbury announced management changes, involving

366-565: A planned merger with Asda was blocked by the Competition and Markets Authority over concerns of increased prices for consumers. The holding company, J Sainsbury plc, is split into three divisions: Sainsbury's Supermarkets Ltd ( including convenience shops ), Sainsbury's Bank , and Argos . As of 2021, the largest overall shareholder is the sovereign wealth fund of Qatar , the Qatar Investment Authority , which holds around 15% of

427-573: A result of increased sales. Sainsbury's sold its subsidiary in America, Shaw's, to Albertsons in March 2004. Also in 2004 Sainsbury's expanded its share of the convenience shop market through acquisitions. After the launch of King's recovery programme, the company reported nineteen consecutive quarters of sales growth, most recently in October 2009. Early sales increases were credited to solving problems with

488-487: A sign outside his first shop was: "Quality perfect, prices lower". Shops started to look similar, so a high cast-iron 'J. SAINSBURY' sign featured on every London shop so that it could be recognised from a distance, and round-the-back deliveries started to add extra convenience and not upset rivals due to Sainsbury's popularity. In 1922, J Sainsbury was incorporated as the private company 'J. Sainsbury Limited'. Groceries were introduced in 1903, when John James purchased

549-483: A summary setting out the background to the consultation and inviting views on the draft guidance for the CMA. The first stage of the consultation ended on 6 September 2013. On 17 September, BIS announced the second consultation stage, which closed on 7 November 2013. During 2013 and 2014, the CMA announced several waves of appointments at the director level, reporting to members of the senior executive team. On 28 March 2014,

610-578: Is a British supermarket and the second-largest chain of supermarkets in the United Kingdom. Founded in 1869 by John James Sainsbury with a shop in Drury Lane , London, the company was the largest UK retailer of groceries for most of the 20th century. In 1995, Tesco became the market leader when it overtook Sainsbury's, which has since been ranked second or third: it was overtaken by Asda from 2003 to 2014, and again for one month in 2019. In 2018,

671-532: The Enterprise and Regulatory Reform Act 2013 , which received royal assent on 25 April 2013. In July 2012, Lord Currie was appointed chairman designate of the CMA, and in January 2013, Alex Chisholm was appointed Chief Executive designate. The term 'designate' was dropped when the CMA was launched on 1 October 2013. On 15 July 2013, BIS announced the first stage of an open public consultation period and published

SECTION 10

#1732876259808

732-699: The Federal Trade Commission , is a globally important antitrust agency. On 15 March 2012, the UK Government 's Department for Business, Innovation and Skills (BIS) announced proposals for strengthening competition in the UK by merging the Office of Fair Trading and the Competition Commission to create a new single Competition and Markets Authority (CMA). The formation of the CMA was enacted in Part 3 of

793-972: The Meadowhall Shopping Centre , Sheffield (originally as a SavaCentre) in 1990, and the Merry Hill Shopping Centre at Brierley Hill in the West Midlands , which opened in September 1989. Sainsbury's expanded into Scotland in 1992 with a shop in Darnley (the SavaCentre at Cameron Toll in Edinburgh had opened in 1984). In June 1995, Sainsbury's announced its intention to move into the Northern Ireland market, until that point dominated by local companies. Between December 1996 and December 1998,

854-447: The hypermarket sector, Sainsbury's formed a joint venture, known as SavaCentre , with British Home Stores . The first SavaCentre shop was opened in Washington, Tyne and Wear , in 1977; nearly half the space, amounting to some 35,000 sq ft (3,300 m ), was devoted to textiles, electrical goods and hardware. As the hypermarket format became more mainstream, with rivals such as Asda and Tesco launching ever larger shops, it

915-501: The CMA published the Rules of Procedure for CMA merger, market, and special reference groups following a consultation from 21 February to 18 March. On 12 August 2019, the CMA's London office moved to The Cabot, 25 Cabot Square, in London's Canary Wharf area. In 2021, the CMA announced that it would establish branch offices in Manchester and Darlington . The Manchester office would house

976-690: The Celia Blakey Charitable Trust which makes grants to various other charities. The Sainsbury family are also major benefactors to English Heritage and the National Trust for Places of Historic Interest or Natural Beauty . In 2021 The Sunday Times named the Sainsbury family among the most charitable people for the last 20 years with donations of £3.625 billion. The Sainsbury family also has varying political interests. Sainsbury%27s J Sainsbury plc , trading as Sainsbury's ,

1037-664: The Digital Markets Unit, charged with "oversee[ing] a new regulatory regime for the most powerful digital firms", forming a 'Digital Hub' with the Digital Regulation Co-operation Forum. The Darlington office, part of the UK Government's Darlington Economic Campus, would be home to the Microeconomics Unit, in charge of the economic research and evaluation functions of the CMA, including production of

1098-644: The Homebase chain in December 2000, in a twofold deal worth £ 969 million. Sales of the stores to Schroder Ventures generated £750 million and sale of 28 development sites, which had been earmarked for future Homebase shops, were sold for £219 million to rival B&Q 's parent company, Kingfisher plc . During the 1980s, the company invested in new technology: the proportion of sales passing through EPOS scanning checkouts rose from 1% to 90%. In November 1983, Sainsbury's purchased 21% of Shaw's Supermarkets ,

1159-570: The Nectar app. The Nectar scheme replaced the Sainsbury's Reward Card; accrued points were transferred over. In January 2003, Wm Morrison Supermarkets (trading as Morrisons) made an offer for the Safeway group, prompting a bidding war between the major supermarkets. The Trade and Industry Secretary, Patricia Hewitt , referred the various bids to the Competition Commission , which reported its findings on 26 September. The Commission found that all bids, with

1220-443: The Sainsbury's board would even consider opening its books for due diligence for anything less than 600p per share. Lord Sainsbury of Preston Candover, with just under 3%, was more extreme than his cousin, and refused to sell at any price. He believed any offer at that stage of Sainsbury's recovery was likely to undervalue the business, and with private equity seeking high returns on their investments, saw no reason to sell, given that

1281-439: The Sainsbury's group boasted a twelve-year record of dividend increases, of 20% or more and earnings per share had risen by as much for nearly as long. Also in 1991, the company raised £489 million, in new equity to fund the expansion of supershops. With the advent of out of town shopping complexes during the 1980s, Sainsbury's was one of the many big retail names to open new shops in such complexes – notably with its shop at

SECTION 20

#1732876259808

1342-518: The United Kingdom, instead assuming responsibility for the rest of the group. David Bremner became head of the supermarkets in the United Kingdom. This was "derided" by the city and described as a "fudge". On 14 January 2000 Sainsbury's reversed this decision by announcing the replacement of Adriano by Sir Peter Davis effective from March. Davis was CEO between 2000 and 2004, with his appointment well received by investors and analysts. In his first two years, he exceeded profit targets, although by 2004

1403-455: The appointment of two chief executives, one in charge of supermarkets within the United Kingdom (Dino Adriano) and the other responsible for Homebase, and the United States (David Bremner). Finally, in 1998, David Sainsbury himself resigned from the company to pursue a career in politics. He was succeeded as non executive chairman by George Bull, who had been chairman of Diageo , and Adriano

1464-548: The availability problems, Justin King said "Lawrence hadn't seen anything that he hadn't seen before. He just hadn't seen them all in the same place at the same time". In 2006, Christensen commented on the four automated depots introduced by Davis, saying "not a single day went by without one, if not all of them, breaking down... The systems were flawed. They have to stop for four hours every day for maintenance. But because they were constantly breaking down you would be playing catch up. It

1525-471: The company and where the company could improve. This reaffirmed the commentary of retail analysts: the group was not ensuring that shelves were fully stocked, due to the failure of the IT systems introduced by Peter Davis . On 19 October 2004, King unveiled the results of the business review and his plans to revive the company's fortunes, in a three-year recovery plan entitled 'Making Sainsbury's Great Again'. This

1586-471: The company in 1998. This brought to an end 129 years of management of the group by the Sainsbury family. As a government minister since 1998, his shares were held in a blind trust until 2007. The equity interest in Sainsbury's held by the family as of May 2011 is 15%. The family sold down their stake from 35% in 2005. The largest family shareholders are Lord Sainsbury of Turville with 4.99% and Lord Sainsbury of Preston Candover , who controls just under 3% of

1647-588: The company introduced another informal font in 2005, which is used in a wide range of advertising and literature. In 1999, Sainsbury's acquired an 80.1% share of Egyptian Distribution Group SAE, a retailer in Egypt with one hundred shops and 2,000 employees. However, poor profitability led to the sale of this share in April 2001. On 8 October 1999, the CEO Dino Adriano lost control of the core supermarket business within

1708-429: The company opened seven shops. Two others at Sprucefield , Lisburn, and Holywood Exchange , Belfast would not open until 2003, due to protracted legal challenges. While Sainsbury's outlets in Northern Ireland were all new developments, Tesco (apart from one Tesco Metro) instead purchased existing chains from Associated British Foods (see Tesco Ireland ). In 1992, the long time CEO John Davan Sainsbury retired, and

1769-440: The company was soon forced to backtrack, introducing its own Reward Card eighteen months later. For much of the 20th century, Sainsbury's had been the market leader in the supermarket sector in the United Kingdom, but in 1995, it lost this position to Tesco. Some new ventures were successful, notably the launch of a retail bank, Sainsbury's Bank , in partnership with Bank of Scotland . In addition to Shaw's, Sainsbury's bought

1830-488: The company went public on 12 July 1973, as J Sainsbury plc, the company was wholly owned by the Sainsbury family. It was at the time the largest ever flotation on the London Stock Exchange ; the company rewarded the smaller bids for shares in order to create as many shareholders as possible. A million shares were set aside for staff, which led to many staff members buying shares that shot up in value. Within one minute

1891-454: The company's distribution system. Later sales improvements were put down to price cuts and the company's focus on fresh and healthy food. On 2 February 2007, after months of speculation about a private equity bid, CVC Capital Partners , Kohlberg Kravis Roberts (KKR) and Blackstone Group announced that they were considering a bid for Sainsbury's. The consortium grew to include Goldman Sachs and Texas Pacific Group . On 6 March 2007, with

Sainsbury family - Misplaced Pages Continue

1952-545: The company, and benefits from 1.6% of the equity included in the above. The Sunday Times reported in September 2006 that "The Sainsbury family continues to [sell] shares in the £6.2 billion retailer... and for the first time their combined holding has fallen below 20%.” The largest shareholder is the Qatar Investment Authority , the investment vehicle of the Qatari royal family of the Gulf Kingdom, who as of May 2011 holds 25.999% of

2013-533: The company. Lord Sainsbury of Preston Candover's decision to split his 3.89% holding in Sainsbury's between other members of his family in December 2006 suggests that the family may not have sold as many shares as previously thought. The other theory could be that the most senior members of the family, with previous stakes of over 3% (the reportable stock exchange shareholding threshold), could have simply transferred some of their shares to their children (who previously held few shares), rather than having sold shares onto

2074-522: The company. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index . Sainsbury's was established as a partnership in 1869, when John James Sainsbury and his wife Mary Ann opened a shop at 173 Drury Lane in Covent Garden, London. Sainsbury started as a retailer of fresh foods and later expanded into packaged groceries such as tea and sugar. His trading philosophy, as stated on

2135-606: The consortium would be unable to make a proposal that would result in a successful offer." Competition and Markets Authority The Competition and Markets Authority ( CMA ) is the principal competition regulator in the United Kingdom . It is a non-ministerial government department in the United Kingdom, responsible for strengthening business competition and preventing and reducing anti-competitive activities. The CMA launched in shadow form on 1 October 2013 and began operating fully on 1 April 2014, when it assumed many of

2196-454: The construction of four fully automated depots, which at £100 million each cost four times more than standard depots. In 2001, Sainsbury's moved into its current headquarters at Holborn, London. Sainsbury's previously occupied Stamford House and twelve other buildings around Southwark . The accounting department remained separate at Streatham . The building was designed by architectural firm Foster and Partners , and had been developed on

2257-495: The current management, led by Justin King, could deliver the extra profit generated for the benefit of existing investors. He claimed the bid 'brought nothing to the business', and that high levels of debt would significantly weaken the company and its competitive position in the long term, which would have an adverse effect on Sainsbury's stakeholders. On 11 April, the CVC-led consortium abandoned its offer, stating that "it became clear

2318-518: The exception of Morrison's, would "operate against the public interest". As part of the approval Morrison's was to dispose of 53 of the combined group's shops. In May 2004, Sainsbury's announced that it would acquire fourteen of these shops, thirteen Safeway shops and one Morrison's outlet, located primarily in the Midlands and the North of England. At the end of March 2004, Davis was promoted to chairman and

2379-544: The former Mirror Group site for Andersen Consulting (now Accenture ); Sainsbury's acquired the 25-year lease when Accenture pulled out. Sainsbury's was a founding member of the Nectar loyalty card scheme, which was launched in September 2002, in conjunction with Debenhams , Barclaycard and BP ; Debenhams, Barclaycard and BP have all subsequently left the scheme, although until the chain's demise Nectar points continued to be awarded for online purchases at Debenhams made through

2440-587: The functions of the previously existing Competition Commission and Office of Fair Trading , which were abolished. The CMA also has consumer protection responsibilities and take on new digital markets regulation responsibilities in late 2024 under the Digital Markets, Competition and Consumers Act 2024 . The CMA alongside the European Commission , the United States Department of Justice and

2501-561: The future of Sainsbury's was self-service supermarkets of 10,000 sq ft (930 m ), with eventually the added bonus of a car park for extra convenience. The first self-service branch opened in Croydon in 1950. Sainsbury's was a pioneer in the development of own-brand goods; the aim was to offer products that matched the quality of nationally branded goods but at a lower price. It expanded more cautiously than Tesco , shunning acquisitions, and it never offered trading stamps . Until

Sainsbury family - Misplaced Pages Continue

2562-508: The grant-making trusts set up by members of the Sainsbury family, are known collectively as the Sainsbury Family Charitable Trusts. Institutions whose creation they fostered include the following: Annabel Sainsbury (married name Annabel Kanabus) set up, with her husband, the international AIDS charity AVERT , and the charity GHE. Adrian Kanabus has set up Adrians Charity. Celia Sainsbury (married name Celia Blakey) set up

2623-452: The group had suffered a decline in performance relative to its competitors and was demoted to third in the groceries market within the United Kingdom. Davis also oversaw an almost £3 billion upgrade of shops, distribution and IT equipment, entitled 'Business Transformation Programme', but his successor would later reveal that much of this investment was wasted and he failed in his key goal – improving availability. Part of this investment saw

2684-790: The list of applications was closed: £495 million had been offered for £14.5 million available shares. The Sainsbury family at the time retained 85% of the firm's shares. Most of the senior positions were held by family members. John Davan Sainsbury (later Lord Sainsbury of Preston Candover ), a member of the fourth generation of the founding family, took over the chairmanship from his uncle Sir Robert Sainsbury in 1969, who had been chairman for two years from 1967 following Alan Sainsbury's retirement. Sainsbury's started to replace its 10,000 sq ft (930 m ) High Street shops with self-service supermarkets above 20,000 sq ft (1,900 m ), which were either in out of town locations or in regenerated town centres. Sainsbury's policy

2745-420: The local church, temporarily, while a new one was built. This shop was not completed until 1951. In 1956, Alan Sainsbury became chairman after the death of his father, John Benjamin Sainsbury . During the 1950s and 1960s, Sainsbury's was a keen early adopter of self-service supermarkets in the United Kingdom. On a trip to the United States, Alan Sainsbury realised the benefits of self-service shops and believed

2806-400: The offer was rejected. On 9 April, the indicative offer was raised to 582p a share, however this too was rejected. This meant the consortium could not satisfy its own preconditions for a bid, most importantly 75% shareholder support; the combined Sainsbury family holding at the time was 18%. Lord Sainsbury of Turville, who then held 7.75% of Sainsbury's, stated that he could see no reason why

2867-403: The open market. However, some shares which have been sold were definitely sold to the open market (according to Miss Judith Portrait, the trustee for many Sainsbury family settlements). This fall from around 35% increases the possibility of any takeover attempt succeeding. However, the Sainsbury family have managed to use their remaining stake to block takeover bids in the past, as demonstrated by

2928-603: The pace of new supershops construction would slow down, and that it would write down the value of some of its properties. In 1994, Sainsbury's announced a new town centre format, Sainsbury's Central, again a response to Tesco's Metro, which was already established in five locations. Also in 1994, Sainsbury's lost the takeover battle for William Low (like Tesco, Sainsbury's had long been under-represented in Scotland). Also that year, David Sainsbury dismissed Tesco's clubcard initiative as 'an electronic version of Green Shield Stamps ';

2989-541: The reluctance to move into non-food retailing, the indecision between whether to go for quality or for value, "the sometimes brutal treatment of suppliers" which led to suppliers favouring Tesco over Sainsbury's, and an unsuccessful advertising campaign fronted by John Cleese . At the end of 1993, it announced price cuts on three hundred of its most popular own label lines. Significantly, this came three months after Tesco had launched its line Tesco Value . A few months later, Sainsbury's announced that margins had fallen, that

3050-459: The second largest retailer of groceries in the northeastern United States (primarily in New England). In June 1987, Sainsbury's acquired the rest of the company. In 1985, the chairman reported that over the preceding 10 years profits had grown from £15 million to over £168 million, a compound annual rise of 30.4% – after allowing for inflation a real annual growth rate of 17.6%. In 1991,

3111-423: The two failed takeover bids in 2007. A hostile bid for the company may encounter difficulties, without the full support of the Sainsbury family. The halving of the generous dividend yield in recent years may have been a significant factor regarding the family's decision to reduce their shareholdings. The Sainsbury family has also set up a number of buildings, to house their various interests. These are: Eighteen of

SECTION 50

#1732876259808

3172-465: Was a vicious circle." Christensen said a fundamental mistake was to build four such depots at once, rather than building one which could be thoroughly tested before progressing with the others. In 2007, Sainsbury's announced a further £12 million investment in its depots to keep pace with sales growth and the removal of the failed automated systems from its depots. In addition, it did a deal with IBM to upgrade its Electronic Point of Sale systems as

3233-647: Was decided that a separate brand was no longer needed, and the shops were converted to the regular Sainsbury's supershop format in September 1999. Sainsbury's diversified further in 1979, forming a joint venture with the Belgian retailer, GB-Inno-BM, to set up a chain of do-it-yourself shops under the Homebase name. Sainsbury's also trebled the size of its Homebase do it yourself business during 1996, by merging its business with Texas Homecare , which it acquired in January 1995 from Ladbroke for £290 million. Sainsbury's sold

3294-436: Was forced to quit in the face of an impending shareholder revolt, over his salary and bonuses. Investors were angered by a bonus share award of over £2 million, despite poor company performance. On 19 July 2004, Davis' replacement Philip Hampton, was appointed as chairman. King ordered a direct mail campaign to one million Sainsbury's customers as part of his six-month business review, asking them what they wanted from

3355-415: Was generally well received by both the stock market and the media. Immediate plans included laying off over 750 headquarters staff, and the recruitment of around 3,000 shop floor staff, to improve the quality of service and address the firm's main problem: stock availability. The aim would be to increase sales revenue by £2.5 billion by the financial year ending March 2008. Another significant announcement

3416-518: Was promoted to be group chief executive. In June 1999, Sainsbury's unveiled its new corporate identity . This was developed by 20/20 Design and Strategy, and included The strapline was dropped in May 2005, and replaced in September of that year by "Try something new today." This new brand statement was created by Abbott Mead Vickers BBDO . While the Interstate font was used almost exclusively for many years,

3477-564: Was replaced as CEO by Justin King . King joined Sainsbury's from Marks & Spencer where he was a director with responsibility for its food division and Kings Super Markets, Inc. subsidiary in the United States. Schooled in Solihull near Birmingham, and a graduate of the University of Bath, where he took a business administration degree, King was also previously a managing director at Asda with responsibility for hypermarkets. In June 2004, Davis

3538-604: Was replaced by his eldest son, John Benjamin Sainsbury , who had gone into partnership with his father in 1915. During the 1930s and 1940s, the company continued to refine its product offerings and maintain its leadership in terms of shop design, convenience, and cleanliness. The company acquired the Midlands-based Thoroughgood chain in 1936. The founder's grandsons Alan Sainsbury (later Lord Sainsbury) and Sir Robert Sainsbury became joint managing directors in 1938, after their father, John Benjamin Sainsbury, had

3599-424: Was succeeded as chairman and chief executive by his cousin, David Sainsbury (later Lord Sainsbury of Turville ); this brought about a change in management style – David was more consensual and less hierarchical, but not in strategy or in corporate beliefs about the company's place in the market. Mistakes by David Sainsbury and his successors, Dino Adriano and Peter Davis , included the rejection of loyalty cards,

3660-420: Was the halving of the dividend to increase funds available for price cuts and quality. King hired Lawrence Christensen as supply chain director in 2004. Previously he was an expert in logistics at Safeway , but left following its takeover by Morrisons . Immediate supply chain improvements included the reactivation of two distribution centres. At the time of the business review on 19 October 2004, referring to

3721-611: Was to invest in uniform, well designed shops with a strong emphasis on quality; its slogan was "good food costs less at Sainsbury's". During the 1970s, the average size of Sainsbury's shops rose from 10,000 sq ft (930 m ) to around 18,000 sq ft (1,700 m ); the first edge of town shop, with 24,000 sq ft (2,200 m ) of selling space, was opened at Coldhams Lane in Cambridge in 1974. The last counter service branch closed in Peckham in 1982. To participate in

SECTION 60

#1732876259808
#807192