New Sainsbury boss Justin King has urged suppliers to play their part in the rebuilding the supermarket chain - not sit on the sidelines as spectators.
In an exclusive interview with The Grocer, King said suppliers recognised that the industry needed a vibrant and successful Sainsbury.
But he said: “They are split into two groups. There are those who say ‘when you are successful let us know and we will come back’ and there are those who say ‘we want to play our part in making you successful again’.
“The latter will get my support. Suppliers have to be part of making this business great again. Being a spectator is not an acceptable approach. We have suppliers in both camps.”
King acknowledged the reticence of some suppliers might be due to Sainsbury’s recent track record of under-delivering But he felt the recent acquisition of 14 Safeway stores and its convenience store acquisitions offered new growth opportunities at Sainsbury.
The Sainsbury boss also made it clear that he had little time for those suppliers whose attitude when dealing with his chain was to see how much they could get away with.
On the thorny issue of price, King insisted that Sainsbury was not going to join any suicidal price wars. He explained: “Price is not the key reason to choose to shop at Sainsbury but it is a reason to choose to shop somewhere else. So we have to offer good value for money.
“We will be competitive where our customers expect us to be and we do expect our suppliers to help.”
During the interview, King said his immediate priority was to simplify the business by clarifying ranges, reducing the number of promotions, taking complexity out of the supply chain and boosting availability.
He also believes it is vital to re-engage with the 13 million consumers who shop at Sainsbury each week - and has written to a million of them asking for their views on the business.
“The easiest pound to get is the one your customers are spending elsewhere,” King explained.
Julian Hunt
In an exclusive interview with The Grocer, King said suppliers recognised that the industry needed a vibrant and successful Sainsbury.
But he said: “They are split into two groups. There are those who say ‘when you are successful let us know and we will come back’ and there are those who say ‘we want to play our part in making you successful again’.
“The latter will get my support. Suppliers have to be part of making this business great again. Being a spectator is not an acceptable approach. We have suppliers in both camps.”
King acknowledged the reticence of some suppliers might be due to Sainsbury’s recent track record of under-delivering But he felt the recent acquisition of 14 Safeway stores and its convenience store acquisitions offered new growth opportunities at Sainsbury.
The Sainsbury boss also made it clear that he had little time for those suppliers whose attitude when dealing with his chain was to see how much they could get away with.
On the thorny issue of price, King insisted that Sainsbury was not going to join any suicidal price wars. He explained: “Price is not the key reason to choose to shop at Sainsbury but it is a reason to choose to shop somewhere else. So we have to offer good value for money.
“We will be competitive where our customers expect us to be and we do expect our suppliers to help.”
During the interview, King said his immediate priority was to simplify the business by clarifying ranges, reducing the number of promotions, taking complexity out of the supply chain and boosting availability.
He also believes it is vital to re-engage with the 13 million consumers who shop at Sainsbury each week - and has written to a million of them asking for their views on the business.
“The easiest pound to get is the one your customers are spending elsewhere,” King explained.
Julian Hunt
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