Retail round up - The Sunday papers

Sir Stuart Rose is facing calls from top institutional investors to put himself up for re-election at the retailer's next annual meeting. The demand is one option that investors are exploring to ensure M&S proves it has shareholder approval for its senior management shake-up, in which Rose was handed the dual role of chairman and chief executive until 2011. One investor said: "We don't believe M&S has properly explained its actions. We're still not convinced this is the right decision. But if they are, they should prove it." The Combined Code recommends that the roles of chief executive and chairman remain separate to prevent a concentration of power in the boardroom. Legal & General, M&S's ¬second-biggest shareholder, criticised the retailer a week ago, calling the reshuffle "unwelcome".

The Sunday Times

Kingfisher is expected to slash its dividend following a strategic review led by its new chief executive, Ian Cheshire. The company is tipped to announce the plan at its full-year results on Thursday. Analysts at UBS and Credit Suisse, the company's house brokers, expect the company to cut the dividend by 40%-50%, potentially saving more than £100m. City sources warned that no final decision had been taken about the dividend and there could still be an eleventh-hour u-turn - but insisted that it would be a shock at this stage if it was not cut. Kingfisher has a significant US investor base, many of whom would prefer to see the company use the cash to turn the business round. It may face a backlash, though, from some of its UK institutional investors, which are eager to maintain earnings from their investment. Kingfisher is also expected to say that it is battening down the hatches amid a tough trading environment by taking the knife to capital expenditure and costs.

J Sainsbury has written to its main suppliers after The Sunday Times revealed last week that the supermarket giant was embroiled in a £3m bribes investigation. Mike Coupe, the trading director at Sainsbury, sent a letter to suppliers stressing that the supermarket's staff were subject to strict company rules about accepting corporate hospitality. Under company regulations, supermarket staff must pay for their own travel to visit suppliers' sites and must not accept gifts. Sainsbury has asked suppliers to contact the company immediately if they become aware of any irregularities. The warning to suppliers came after one of the supermarket's most senior buyers was arrested on suspicion of accepting backhanders from a potato company. Sainsbury, led by Justin King, chief executive, said at the time: “We are the victims of an alleged crime and take it very seriously. None of the payments went through our system and we believe this was limited to the one supplier.”

The Independent on Sunday

The sale of Somerfield is going ahead, defying speculation that the auction had been abandoned. Sources said Robert Tchenguiz, part-owner of the £2bn supermarket chain, is still hopeful a sale can be agreed. The Co-operative group was thought to be the only bidder to have tabled an offer for the retailer before the first-round auction deadline earlier this month. Other interested parties, such as Asda, are keen to buy parts of the business, but are not likely to make a full offer. However, a source close to Mr Tchenguiz told The Independent on Sunday: "People are saying this is all over but it's not by a long shot. There's still a lot of interest in Somerfield and we expect further bids to come." But he conceded: "Look, had we known back in June last year, when we kicked this off, what we know now, clearly we wouldn't have started this whole process, but we have."