The Sainsbury experience: Diversification or divestment ? Available to Purchase

Although diversification is now seen as an inevitable course for grocery retailers, Sainsbury's managing director Roy Griffiths suggests that in the 1980s companies may be less interested in diversification than in divestment. Mr Griffiths was speaking at the Institute of Grocery Distribution Convention in Brighton in April, shortly before his company released news of record figures for 1979–80. He regards earnings per share as a crucial factor in assessing company performance; Sainsbury have increased their real earnings by 4.2% per annum compound over the last seven years — and not, he insisted, at the expense of manufacturers.