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Bloomberg
News that J Sainsbury Plc Chief Executive Officer Mike Coupe is leaving in May marks the end of an unrewarding chapter for the UK grocer’s shareholders.
Competition from German discounters Aldi and Lidl and a shift to online shopping have put British supermarkets including Tesco Plc and Wm Morrison Supermarkets Plc under pressure, but Sainsbury shares have suffered the most during Coupe’s near six-year tenure.
The stock has lost about a third of its value since the CEO took the helm in July 2014, with a negative total annualised return of about 2.7% a year. That compares with a 5.9% annualised return for Morrison and a 1.3% negative return for Tesco, according to data compiled by Bloomberg. Stock performance under Coupe has also trailed Sainsbury’s previous two CEOs, the data show.
The announcement of Coupe’s exit comes only nine months after the collapse of his planned acquisition of Walmart’s Asda, through which he aimed to gain purchasing clout and create a UK business to rival Tesco in scale.
Even more recently, Sainsbury announced a new strategic plan involving supermarket closures and cost-cutting.