Morning Financial Press Review 23/01/20
has announced that its chief executive, Mike Coupe, will retire in May after six years in charge of the UK’s second largest supermarket chain. The 59-year-old will be succeeded by the grocer’s retail and operations director, Simon Roberts. Coupe has faced questions about his future since April, when the competition regulator blocked Sainsbury’s attempt to take over its Walmart-owned rival Asda for £7.3bn. Coupe was the architect of that deal and Sainsbury’s share price has fallen 22% over the past year. Roberts, a former managing director of the health and beauty retailer Boots, joined Sainsbury’s in 2017, with oversight of the logistics systems used by the company’s 1,400 stores as well as online operations. Coupe was appointed as head of the supermarket in 2014. He oversaw the £1.4bn acquisition of the catalogue retailer Argos in 2016 but Sainsbury’s share price has fallen by more than 30% from the date he took over. Coupe will also be remembered for his “hot mic” rendition of the Broadway musical number We’re in the Money on the day he announced the Asda deal. The merger was ultimately vetoed by regulators over fears that a supermarket with a combined market share of more than 31% would reduce choice for customers. - The Guardian
could be left without a permanent chief executive or chairman for months until regulatory probes into its 2019 loans gaffe are complete, City analysts have warned. Watchdogs are still investigating the lender following an accounting scandal which stunned investors last January. Metro shares have since plunged 91%, while in December chief executive Craig Donaldson followed founder Vernon Hill out of the door. One former Metro Bank insider said the lender is unlikely to secure a replacement for Mr Donaldson or Mr Hill before the probes from the Bank of England and the Financial Conduct Authority (FCA) are complete. The view was echoed by City analysts. - The Times
boss Jes Staley has declared victory over corporate raider Edward Bramson, arguing that his prized investment bank is here to stay after fears it could be broken up. Speaking at this year’s World Economic Forum in Davos, Mr Staley said that Mr Bramson’s campaign for deep cuts at Barclays appears to be at an end. In an interview with CNBC, he said: “Our activists have pretty much pulled back. Barclays is here to stay as a bulge bracket investment bank.” One investor agreed that Mr Bramson has softened his siege, despite the fact that in November he lengthened a controversial loan, used to build a stake in the lender, by a year to July 2022. Mr Staley’s declaration of victory at Davos comes months after his case for keeping the investment bank intact was boosted by strong results within the unit, which beat its Wall Street rivals. - The Times
boss Tim Martin launched a fresh broadside against “complacent” City shareholders that force firms to stick to rules they do not follow themselves. The pub chief once again attacked Columbia Threadneedle and BlackRock – two of Wetherspoon’s biggest investors with a combined 12.9pc stake – and UK corporate governance rules for creating what he said were short-termist, inexperienced boards by restricting the number of years a director can serve for. In a rant issued as Wetherspoons announced a rise in Christmas sales, Mr Martin said: “These factors are obviously damaging for customers, employees and the economy – as well as for shareholders. “The current system is remote, counterproductive and inflexible, which are also the characteristics of many major shareholding institutions and their advisers.” - The Telegraph
groomed over over 27,000 dogs in the week before Christmas, coining in cash from owners keen to get their pooches looking tip-top for the festive period. The pet store, which has expanded its operations into grooming and vet work, saw 6,000 dogs step into into its sites to get groomed in a single day on Christmas eve. Out of all the retailer’s 453 stores, Stockport was the busiest for dog grooming over the festive period, sharpening up the looks of over 250 dogs in the week before Christmas. - The Daily Mail
became a victim of its own success as Barclays downgraded it to “equal weight”. Analysts at the bank said that M&G had “surpassed expectations” since its demerger last October, with its shares up by almost a quarter in that time. One of their concerns was the asset management business, from which investors have been pulling their money over the past couple of years. Barclays reckons that this trend will need to reverse if the shares are to move higher, but it doesn’t think M&G’s funds have performed well enough for investors to start piling back in. - The Times
Lambskin handbags and a new range of trainers boosted sales at in the run-up to Christmas despite severe disruption from violent pro-democracy protests in Hong Kong which kept buyers in the city at home. Revenue at the British fashion house rose by 1% to £719m in the 13 weeks to Dec 28 compared to a year earlier, while sales at stores that have been open for more than a year rose by 3%. But sales in the important Hong Kong market halved as clashes between police and protesters in the territory dented demand. Burberry’s chief financial officer Julie Brown said sales of a new range of trainers enjoyed double digit growth during the period, while its Lola lambskin handbags were a hit with customers. - The Telegraph
says inventory overstated by £58m. Struggling fashion chain reveals accounting blunder is double previous estimates. - The Financial Times
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