Sainsbury's buys corner shops

THE search for a candidate to head struggling Sainsbury's is under way once again, following the dramatic withdrawal of Sir Ian Prosser after fierce resistance from the supermarket group's leading institutional shareholders.

But the controversy surrounding Prosser's appointment, and subsequent departure, together with Sainsbury's lacklustre performance, is likely to deter potential candidates, analysts said today.

Meanwhile, chief executive Sir Peter Davis took time out from the debacle to announce the acquisition of a Durham-based corner shop chain, Bells Stores.

No price is being disclosed but analysts said it was likely to be around £20 million. Sainsbury's chief executive Sir Peter Davis said the acquisition of the privately-owned firm underlined Sainsbury's commitment to the fast-expanding convenience market, currently worth some £21.5 billion a year. The group has

66 Sainsbury's Local stores already and a further 15 in partnership with Shell.

Bells, founded in 1968 by current chairman Les Bell, a former milkman, will be run by the same management team. Sir Peter said: 'This acquisition delivers a highly respected management team and a successful neighbourhood format strengthening our ability to grow our presence in the convenience market.

'We know that the Sainsbury's brand works very successfully with the convenience format and the Bells brand is an excellent match, standing for quality, service and value.'