Sainsbury’s is considering two City big-hitters to replace outgoing chairman Sir Philip Hampton.

Burberry chairman John Peace and Thomson Reuters deputy chairman Niall FitzGerald are being considered for the £396,000 a year position.

The grocer is hoping to pick its preferred candidate by its annual meeting on July 15.

Peace was chief executive of GUS, the defunct conglomerate that used to own Argos and Homebase, where he oversaw a raft of acquisitions, demergers and disposals. FitzGerald – who is also former chief executive of Unilever – is keen to take on a chairmanship; he has been approached three times to become BP’s chairman but has turned down the offers.

Hampton is stepping down from Sainsbury’s after becoming chairman of the Royal Bank of Scotland.