Sir Peter is to stand down as Sainsbury's chairman

He is leaving the chain a year early after some shareholders were said to be unhappy at his £2.4m bonus for the 2003/04 financial year.

But BBC Business Editor Jeff Randall said it was not so much about the bonus size as profits, market share, and share price performance.

A Sainsbury's spokesman declined to comment when contacted by BBC Online.

In May Sainsbury's unveiled a 2.9% fall in profits and disappointing sales.

After four troubled years the wheel is about to come off Sir Peter Davis' trolley Jeff Randall, BBC Business Editor See Sainsbury's latest share price

Underlying profits for the year fell to £675m ($1.2bn) from £695m in 2003.

Sainsbury's lost its position as market leader to Tesco in 1995, and was pushed into third spot by Asda last year.

Sir Peter Davis' role as chief executive passed to Justin King in March this year, with Sir Peter taking over the chairman's role and due to step down in July 2005.

Under the leadership of Sir Peter, Sainsbury's has undergone a three-year programme of store modernisation.

However, sales have remained disappointing.

Institutions have been threatening to vote against the company's remuneration report, including Sir Peter's bonus, at the Sainsbury's annual meeting on 12 July.