Opinion

The banner headlines said it all. When Sainsbury announced its profits warning last weekend, there was never a doubt the issue would make a rapid transfer from the business columns to the front pages of the broadsheets. And while the fortunes of the grocery chains are rarely out of the media limelight, the verdicts of the analysts and City journalists have rarely been penned with such emotion. Thus the multiple's chief executive in waiting, Dino Adriano, has hardly got his feet under his new desk before he is awarded the distinction of a photograph on the front page of The Financial Times ­ albeit in dubious circumstances. The fact that his company has again failed to deliver could hardly be fully laid at his door, but it is inevitable that the pundits are looking to him to reverse last weekend's dramatic headlines. Chairman David Sainsbury, on the other hand, must be ruing the day that he ridiculed arch rival Tesco's Clubcard, only to unveil a me-too' 18 months later. It is suggested by a major researcher that Sainsbury may be forced to use its ammunition to recapture ground from Tesco in a substantial price war ­ thus eroding even further the all-important profit margins which are constantly being trimmed by swings into the loyalty card business. Price is not the whole issue in this conflict. It has been obvious for some time that the Sainsbury marketing philosophy has lacked the authority and panache which characterises Tesco's more appealing shopping experience. In addition, a more balanced offer of brands and own label would probably also have gained points for Sainsbury in recent years. The new young guns at Stamford Street must produce a visionary trading format which not only creates livelier stores but redresses the balance between brands and own label without further compromising margins. Profitable retailing survival was always about being proactive rather than reactive ­ a creed which the Sainsbury team must increasingly keep in mind.{{NEWS}}