Sainsbury’s CEO Justin King was able to rekindle the retailer’s core values by putting customers back at the heart of company strategy.

Sainsbury’s CEO Justin King was able to rekindle the retailer’s core values by putting customers back at the heart of company strategy.

On the morning of Justin King’s first day at Sainsbury’s, he headed straight to a store to speak to staff and customers. Back at the head office, a manager worriedly phoned him up, asking if he was coming to start work. “We’re all waiting for you in the boardroom,” King was told.

For King, the root of the grocer’s problems was laid bare then. The once much-loved retailer had forgotten to put customers at the heart of its strategy.

From that morning 10 years ago until his last day on Wednesday, King never forgot to put customers at the heart of everything he did. And while simple, that ethos enabled him to turn around a business many had written off.

King took a business that was verging on implosion and not only stabilised it, but positioned it for growth.

By listening to his customers, King was able to rekindle the values of Sainsbury’s and reinstate the retailer as a brand the nation took to heart.

While King will be remembered at Sainsbury’s for many things, perhaps the most pivotal was his ability to ensure the grocer outperformed its rivals and continued to grow after the recession hit.

Critics at the time cited Sainsbury’s as one of the retailers destined to suffer in a recession.

“King took a business that was verging on implosion and not only stabilised it, but positioned it for growth”

Chris Brook-Carter, editor-in-chief, Retail Week

Most would have laughed at the idea that Sainsbury’s could outperform Tesco, Asda and Morrisons throughout what many deem the deepest consumer recession ever.

But, again, a relentless customer focus allowed King to prove his critics wrong. From savvy marketing to investing in own brand, Sainsbury’s delivered like-for-like growth and gained market share throughout the economic downturn while competitors floundered.

And while the great run of like-for-like growth may have come to an end earlier this year in the face of some of the most challenging conditions grocers have faced over the past 30 years, the fact remains King is handing over a business in a strong position with much growth potential. A business that is well placed for the next chapter.

New chief executive Mike Coupe will not have an easy ride through the choppy waters of a sector facing massive structural change. But he seems like the sort who shares King’s view that knowing the customer is what it’s all about.

  • Chris Brook-Carter, editor-in-chief, Retail Week