* Mike Coupe to step down as CEO on May 31
* Retail and operations director Simon Roberts to take over
(Adds details)
By James Davey
LONDON, Jan 22 (Reuters) - Mike Coupe will step down as CEO
of Sainsbury's at the end of May after six years at the
helm, with Britain's second largest supermarket group opting for
continuity by choosing retail director Simon Roberts as his
successor.
Coupe has faced questions about his future since April when
Britain's competition regulator blocked Sainsbury's attempt to
take over Walmart-owned rival Asda for 7.3 billion
pounds ($9.5 billion). Coupe was the architect of that deal and
Sainsbury's share price has fallen 22% over the last year.
Roberts, 48, is a former managing director of health and
beauty retailer Boots. He joined Sainsbury's in 2017.
On Jan. 10, Reuters reported that he was the leading
internal candidate to succeed Coupe.
“This has been a very difficult decision for me personally,"
said Coupe. "There is never a good time to move on, but as we
and the industry continue to evolve, I believe now is the right
time for me to hand over to my successor."
Roberts' appointment to one of the highest profile jobs in
British retail raises the question of whether he will adapt
Sainsbury's strategy that was set out in September and was
designed to show the group could prosper on its own.
Sainsbury's profit is forecast to fall in its 2019-20
financial year.
Roberts' task will be to grow earnings in the face of
softening consumer demand and the relentless march of
German-owned discounters Aldi and Lidl, which continue to
aggressively open new stores and win market share.
"Simon has been extremely effective during his three years
at Sainsbury’s, leading our store teams through great change in
that time," said Chairman Martin Scicluna.
"Simon is a dedicated, determined and enthusiastic champion
of the customer and of our colleagues and has overseen sustained
improvements in our competitiveness during his time so far."
His appointment means Britain's two biggest supermarket
groups - market leader Tesco and Sainsbury's - will be
run by Boots alumni.
Ken Murphy, a former joint chief operating officer at Boots
UK & Ireland, will succeed Dave Lewis as CEO of Tesco in the
summer.
Before joining Sainsbury's, Roberts was executive vice
president of Walgreens Boots Alliance and president of
its Boots unit. Prior to that, he was managing director of Boots
UK, where he was responsible for leading retail and pharmacy
activities in over 2,500 stores across the UK and Ireland.
Earlier in his career, Roberts spent 14 years at clothing
and food retailer Marks & Spencer, where he had roles in
stores and operations.
"I am really excited about working together with our 178,000
colleagues to become one multi brand, multi channel business,"
said Roberts.
Sainsbury's said Coupe would remain a director from June 1
until the annual shareholders' meeting on July 2, at which point
he will retire from the company.
($1 = 0.7658 pounds)
(Reporting by James Davey; editing by Kate Holton and Mark
Potter)