Sainsbury has thrown down the gauntlet to its multiple rivals in the convenience sector with the appointment of former T& S chief executive Jim McCarthy as head of a convenience division.
McCarthy was in charge of T& S during its growth from a minor regional player to become the largest c-store multiple in the UK until it was taken over by Tesco in October 2003. He left shortly after and has recently been working as a consultant for Sainsbury.
Reporting to chief executive Justin King, McCarthy will be responsible for 92 Sainsbury’s c-stores and forecourts and the recently acquired 54-strong Bells Stores chain.
Former head of convenience John Coverley will now report to
McCarthy, who will start work for Sainsbury in early June. Steven Bell will also report to McCarthy.
Analysts said the recruitment of such a high profile figure showed that Sainsbury intended
to grow its convenience store estate aggressively.
Richard Hull, head of retail at Capgemini, said the competition for c-store sites between Sainsbury, Tesco, the Co-operative Group and Somerfield was already intense and this move increased the pressure. He said:“This appointment and the move of Steve Murrells to head T&S at Tesco shows the importance these companies attach to their c-store estates.”
The fact that Sainsbury had appointed someone of McCarthy’s stature, and formed a new division focused on the convenience sector, was a sign that further c-store acquisitions were in the pipeline, said SRCG MD Andy Thornton.
“Sainsbury has realised that it needs to have a dedicated focus on convenience in the way that Tesco did with the appointment of Colin Holmes.”
McCarthy built up the T&S business aggressively with a series of strategic acquisitions including M&W, One Stop and Day & Nite, and knew the sector inside out, said Thornton.
Tom Fender, md of Harris International Marketing, said: “Sainsbury is very competitive in fresh, but lacks expertise in other core convenience lines. The move to acquire Bells and now bringing in Jim McCarthy means they have recognised this and recruited that expertise.”
He said Bells was best in class in BWS and in executing promotions. Both Steven Bell and McCarthy would improve news and confectionery.
“This demonstrates how important convenience is to Sainsbury, and its focus and commitment. Something like eight out of its top 10 sales densities are in Local stores.”
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McCarthy was in charge of T& S during its growth from a minor regional player to become the largest c-store multiple in the UK until it was taken over by Tesco in October 2003. He left shortly after and has recently been working as a consultant for Sainsbury.
Reporting to chief executive Justin King, McCarthy will be responsible for 92 Sainsbury’s c-stores and forecourts and the recently acquired 54-strong Bells Stores chain.
Former head of convenience John Coverley will now report to
McCarthy, who will start work for Sainsbury in early June. Steven Bell will also report to McCarthy.
Analysts said the recruitment of such a high profile figure showed that Sainsbury intended
to grow its convenience store estate aggressively.
Richard Hull, head of retail at Capgemini, said the competition for c-store sites between Sainsbury, Tesco, the Co-operative Group and Somerfield was already intense and this move increased the pressure. He said:“This appointment and the move of Steve Murrells to head T&S at Tesco shows the importance these companies attach to their c-store estates.”
The fact that Sainsbury had appointed someone of McCarthy’s stature, and formed a new division focused on the convenience sector, was a sign that further c-store acquisitions were in the pipeline, said SRCG MD Andy Thornton.
“Sainsbury has realised that it needs to have a dedicated focus on convenience in the way that Tesco did with the appointment of Colin Holmes.”
McCarthy built up the T&S business aggressively with a series of strategic acquisitions including M&W, One Stop and Day & Nite, and knew the sector inside out, said Thornton.
Tom Fender, md of Harris International Marketing, said: “Sainsbury is very competitive in fresh, but lacks expertise in other core convenience lines. The move to acquire Bells and now bringing in Jim McCarthy means they have recognised this and recruited that expertise.”
He said Bells was best in class in BWS and in executing promotions. Both Steven Bell and McCarthy would improve news and confectionery.
“This demonstrates how important convenience is to Sainsbury, and its focus and commitment. Something like eight out of its top 10 sales densities are in Local stores.”
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Elaine Watson & John Wood
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