Comparing the Financial Performance of Tesco and Morrison from 2007 to 2011

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Comparison of the Financial Performance of Tesco and Morrison's 2007 - 2011 The supermarket industry in the UK has faced significant challenges and undergone notable changes between 2007 and 2011. Two of the major supermarkets are Tesco and Morrison, the challenges, including the recession, as well as changes that the firms have implemented are reflected in the financial performance of these two firms. Tesco is the market leader in the UK where since May 2005 the firms market share has been slightly above 30%, only dipping at the beginning of 2012 (BBC News, 2012), The firm has substantial international interests including Ireland, Poland, the Czech Republic, India, China and since 2007 the US (Tesco, 2012, Rushe, 2009, p6). By comparison Morrison's, the supermarket that is the forth largest in terms of sales, may be seen as the less powerful challenger; the David to Tesco's Goliath, but one whose financial performance over the last five years (2007 - 2011) indicates may be one that will pose an increasing threat to the larger and more powerful competitor. In 2004 Morrison's had only a 7.6% share of the groceries market (Anonymous, 2012). Following an acquisition of the former supermarket Safeway, Morrison's have grown and by 2007 when the firm had integrated all of the stores retained after the acquisition and the market share has reached 12% by 2011 and 12.3% by 2012 (BBC News, 2012, Anonymous, 2012). The first notable difference between the two companies is

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