Sainsbury’s ousts chairman

Sainsbury’s has ousted chairman Peter Davis and said profit will drop for a second year as Britain’s third-largest supermarket chain loses ground to competitors, including Tesco.

Philip Hampton, former finance director of Lloyds TSB Group and BT Group, will replace Mr Davis on July 19, Lord Levene, head of the company’s nomination committee, said.

Pressure from investors, who opposed Davis’s bonus of €3.7m, has already forced the London-based retailer to change chairman appointments once this year.

Sainsbury, the biggest British grocery chain by market share until 1995, is losing out to the likes of Tesco and Wal-Mart Stores and Asda, which are cutting prices and offering more than basic food items.