Sainsbury's chief executive, Sir Peter Davis has said that when he took over the group he had inherited a run-down boarding house that required a complete overhaul.
Speaking at a food conference in Madrid Sir Peter also commented that there was little point taking on 'modern hotels' such as Tesco and Asda while Sainsbury's was undergoing a 'heart and lung transplant'.
Sir Peter said that Sainsbury's would mount an effort to acquire market share from Tesco and Asda but not until it was in a better competitive shape.
The group is undertaking a huge overhaul, with new product lines including a big expansion of non-food ranges. About 80 stores will have dedicated non-food areas with a further 220 stores selling non-food areas by the end of this year.
Sainsbury's has recruited 17 non-food specialists from rivals such as Marks & Spencer and French retailer, Carrefour to oversee the changes.