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LONDON, July 9 (Reuters) - After a decade at the helm,Justin King stepped down as CEO of Sainsbury's onWednesday, with its chairman reassuring the grocer's investorsthat a tough market and the rise of discounters wouldn't stop itprospering under his successor.
King left the over 1,230 store British retailer at theconclusion of its annual shareholders meeting in central Londonand was succeeded by commercial director Mike Coupe; a promotionthat was announced in January.
"I'm sure of one thing, Justin's departure doesn't mean theend of this success story," said chairman David Tyler.
He paid tribute to King, calling him a "guiding light to allof us," prompting a partial standing ovation from a packed roomof, mainly elderly, private investors.
King joined as CEO in March 2004 and in his 10 yearstransformed the 145-year-old group's fortunes, delivering over10 billion pounds ($17 billion) in incremental sales, anear-tripling in earnings and total shareholder return (TSR) of85 percent.
But he departs with Sainsbury's - in common with its bigrivals, market leader Tesco, Wal-Mart's Asdaand Morrisons - battling the lowest growth in the sectorfor a decade and the two pronged challenge of discount grocersAldi and Lidl and upmarket players suchas Waitrose.
Sainsbury's run of 36 straight quarters of like-for-likesales growth under King came to an end in March and it has sinceposted another quarterly fall.
Tyler said the board was confident Sainsbury'sdifferentiated offer would see it emerge as a winner. Thatincludes a focus on own-brand products, online and conveniencestores, as well as expansion into non-food items and financialservices.
"I know I leave the business in safe hands," said King, 53,without giving any clues on what he plans to do next.
He has said he wants another big job, though a "non-compete"deal rules him out of taking a role with any rival grocery chainfor 12 months.
"Mr King has done a fantastic job here .... Is there anychance Mr King could rescue Marks & Spencer?," askedprivate shareholder George Conway.
Coupe, as CEO designate, has already made his mark, frontinglast month's move by Sainsbury's to team-up with Denmark's DanskSupermarked to bring the Netto brand back to the UK and take onthe fast-growing German discount chains at their own game.
($1 = 0.5877 British Pounds) (Reporting by James Davey; Editing by Mark Potter)
