After seeing disappointing sales in the changing and competitive supermarket industry in Britain, Sainsbury’s is scrapping plans to expand its store count and might cut its dividend by as much a a third, reports the Telegraph.
The new CEO of Sainsbury’s Mike Coupe, has his work cut out for him, as he is faced with having to lower prices to keep up with discounters Aldi and Lidl. Coupe is expected to concentrate on aspects of the business that are strong, including is online, convenience store and clothing segments.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
The stock has fallen 35% so far this year, and Coupe is having to cut costs. At the same time, food deflation has affected supermarkets, as well as cutthroat competition. It is likely that Sainsbury’s will open smaller stores, such as convenience stores.
Just for a bit of history, the iconic British supermarket chain was founded by John Benjamin Sainsbury, who married Mabel van den Bergh a Dutch Jewish heiress whose family made its fortune in margarine.
