Sainsbury's has lost an important player in its ambitious move into non-food retailing with the defection of Richard Jones, head of general merchandise and global sourcing, to its bitter rival Tesco.
Jones is believed to have tendered his resignation late last week and is still in negotiations with Sainsbury's to terminate his 12-month contract.
He was brought in to the supermarket five years ago and has helped spearhead its expansion into the selling of items such as clothing and homewares. Formerly with Marks & Spencer, he helped develop Sainsbury's successful TU range of clothing, now worth about £300m in annual sales.
Sainsbury's has been moving further into non-food retailing, which has higher margins than its traditional business. About half the new retail space it adds over the next few years will be devoted to non-food merchandise.
A spokeswoman for Sainsbury's last night confirmed Jones's resignation but stressed the company's non-food strategy is well advanced. "We've got a great team and they will be cracking on with the job," she stressed.
Jones has not yet been given a start date or a job title at Tesco but his arrival will raise questions about the future of Terry Green, the former Debenhams and Bhs boss brought in to run the supermarket's clothing business. A Tesco insider, however, said last night that Jones will have "a fairly senior role but he's not a Terry replacement".
A Tesco spokesman said that Jones will be working "in non-food sourcing and range development across the group".
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