The new chief executive of Sainsbury's unveiled a shake-up of the company's management team today after seeing profits for the last year slide 2.9%.
Justin King, who joined the troubled supermarket chain two months ago from the food department of Marks & Spencer, made his first move as Sainsbury's said underlying profits for the year to March 27 fell to £675m.
The UK's former number one supermarket chain has seen its figures wilt in the face of stiff price competition from rivals such as Asda and Tesco, while it has also been hit by the impact of its own restructuring campaign.
Among management changes today, Stuart Mitchell will step down as managing director of the main supermarket business - a move that will enable Mr King to take control of the day-to-day running of the operation.
During the last financial year, sales at Sainsbury's core UK business increased 2.2% to £15.3 billion, but the figure was down 0.2% on a like-for-like basis, which strips out the effect of new stores. Operating profits were also 1.4% lower at £564m.
The company said the lacklustre performance reflected a three-year modernisation programme, including an overhaul of IT and distribution systems.
