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Sleep Country Canada ( Scc ) Essay

Decent Essays
Sleep Country Canada (SCC), initiated in Vancouver in 1994, is the largest mattress retailer, offering various styles of mattresses and sleep related products in 224 stores and 17 distribution centers across Canada as of December 31, 2015. The target demographic is the working class, wishing to purchase quality products for less. SCC maintains a leading position in the industry due to competitive product pricing, selling 5% lower than other leading retailers. Success is also due to marketing, making SCC a recognized brand across Canada. Further initiatives include: broadening SCC’s real estate footprint, implementing store designs to enhance displays, redesigning and expanding products to meet change in consumer demand, employing “Sleep Expert” retail assistants, as well as upgrading the logistic system and software. SCC also works to enhance employee training and compensation program, increasing employee satisfaction and productivity. Ratio Analysis The Company had $1.55 of current assets to repay each $1 in liabilities in 2014, dropping to $0.94 per $1 in 2015 respectively. The decrease in current ratio occurred due to the decrease in current assets and increase in current liabilities from 2014 to 2015. It is important to recognize that in 2015, SCC did not have enough current assets to pay for its current liabilities. The note of financial statements attributed this to the increase in trades payable and accrued expenses from the expansion plan of SCC, leading to
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