A round-up of supermarket news and gossip
J Sainsbury is now looking for a new bank chief executive after ousting Tim Pile, head of the supermarket group’s loss-making banking division.

The regulator circles as Tesco makes £2.2 bn. The company is expected to make record profits as Britain’s supermarkets prepare for an inquiry by the Competition Commission.

Irrespective of the result of any enquiry, Tesco has announced the creation of a £100m environmental fund. It will also finance research and support the use of wind, solar, and geothermal power in stores and distribution centres. The retailer is also reported to be working on plans to build a store made entirely from recyclable materials and also to improve recycling in stores nationwide. It is excellent news to find that the supermarket sector is “independently” pursuing a path of “environmental awareness”, prior to any form of legislation being put in place.

Lianhua Supermarket Holdings, China’s top supermarket group, said that 2005 profits rose 11%. John Lewis, which also operates Waitrose, said that sales rose by 13.5% over the Easter week-end. Food was not split out separately.

Britain’s biggest is set to be a giant supermarket warehouse, erected next to a Hampshire nature reserve. The “mega shed” will have a floor space of 1,250,000ft2.

He liked the wine so much that he bought the vineyard. The science minister, Lord Sainsbury, has bought a vineyard in Burgundy and taken on one of the region’s top producers to create fine wine. The labels are unlikely to reach the supermarket shelves.

Asda held onto its No 2 slot ahead of rival J Sainsbury, according to the TNS Market Research Company.

Consumers with accident claims will lose out under government plans for the agreement of ownership of law firms by major supermarkets. There is concern regarding conflict of interest, which is being voiced by the Association of Personal Injury Lawyers.

Alfa Group, the investment company of Mikhail Fridman, the Russian oligarch, has bought a 54% stake in Pyaterochka. The London Stock Exchange listed the discount supermarket chain for £660m.

Pyaterochka is merging with Perekriostok to create the clear leader among Russia’s supermarkets. Mr Fridman, Russia’s fourth richest man with an estimated £6bn stated: “The growth rates in the retail sector are higher than all other sectors of the economy. The prospects are virtually limitless.”

Marks and Spencer steals market share from rivals, so goes the headlines. This would appear to refer to the clothing side of the businessMetro, the German retailer, plans to use proceeds from the sale of its remaining stake in Praktiker, the DIY chain estimated at more than £284m, to cut debt and expand.

The science minister, Lord Sainsbury again, is facing a Whitehall inquiry after being accused of breaking the ministerial code of conduct by failing to declare a £2m loan to labour.

Marks and Spencer is to distribute a £60m bonus to all its 63,000 staff for the first time in the group’s history.

Soft Drinks have been removed from shelves after they were found to be contaminated with a cancer-causing chemical. The bottles include own-label soft drinks sold by the Co-op, Morrison and Aldi. Tests on one drink showed levels of benzene (36 times those allowed in tap water). Foods safety campaigners demanded that all products with benzene levels above drinking water should be removed from sale until they complied with the tap water standard.

Bob Stott, the chief executive of Wm Morrison is in line for a £1.42m pay-off. He will continue to work for the company as a consultant. In the year to January the basic salary of Sir Ken rose 24% to £667,000. Amazingly, over the same period profits fell 81.5% to £61.5m from £332.2m.

Asda is to fight back against the advance of Primark with the launch of a new budget fashion range.

GEMINI