Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Simon English: The City has its doubts about King Justin

Simon English
Thursday 12 January 2012 01:00 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Outlook Justin King is a brilliant retailer. Just ask him, he'll tell you.

Yesterday's trading statement saw the Sainsbury's chief executive at his most ebullient.

"Record breaking," purrs the statement. Sales up 7 per cent.

"Quite clearly that result places us as the Christmas winner in grocery," says the bouncy Mr King.

City analysts aren't entirely convinced. Once you take out VAT and store extensions, they say, the underlying sales growth is not much better than Morrisons.

Which is why the City isn't giving Mr King's shares much love lately.

"Hold" says Shore Capital. Of course, if you've been holding them since they were nearly £6 in 2007, that advice is starting to get irksome.

The case against Mr King is that he doesn't turn nearly enough profit on annual sales of around £23bn.

But let's not be mean spirited. When he arrived in March 2004 Sainsbury's was a mess. The shelves were sometimes half-empty and even those with an emotional attachment to the company were beginning to shop elsewhere.

It's now a serious competitor to Tesco, and Mr King, one of the longest-serving FTSE 100 bosses, is still up for it. Fair play.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in