According to the Financial Times, Sainsbury's chief executive Sir Peter Davis and his soon-to-be successor Justin King have fallen out over the presentation of tomorrow's trading statement.
The supermarket group's statement is expected to show a significant fall in profits - forecasts for the year have dropped from £860 million to £710m. While Sir Peter was keen to focus on the "green shoots" of recovery, said the FT, King is more in favour of a downbeat approach, concerned that an over-positive outlook might be a "hostage to fortune" as he begins his stint at the helm.
Sir Peter's desire to step down on a good note with shareholders therefore clashed with King's wish to give the City hopes he could deliver on.
Analysts fear that King's cautious approach could lead to a profits downgrade. This would be a further blow to the group that has suffered a City backlash in recent years as it slipped from number one to number three in the UK supermarket rankings.
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