Shore Capital Stockbrokers has said that the appointment of Mike Coupe to the position of chief executive of Sainsbury's, replacing Justin King, "represents continuity for Sainsbury’s, something that may reassure investors who will naturally be a little disconcerted by change."
King announced he will stand down from the role of chief executive after the annual Sainsbury's shareholders' meeting on 9 July. Coupe currently holds the role of group commercial director at the retailer.
Shore Capital's Clive Black said that while there was "disappointment that Mr. King has decided to resign, continuity should present few shocks and surprises in the near term. No doubt further out Mr. Coupe will become his own man and we’ll watch and wait to see how the business’ strategy evolves thereafter.
"We do also believe that with a pretty impressive track record, Mr. King’s timing is sound as his successor may yet have to deal with a rejuvenating Tesco, noting as we do that his predecessor was blessed with the market leader being somewhat distinctly and sustainably off form through the latter stages of his tenure."
Black added that King's departure did "not come as a total surprise", as "there has been much market chatter about Mr. King moving on to pastures new for some months now."
© 2014 - Checkout Magazine by Stephen Wynne-Jones
