The Performance Of Sainsbury And Morrison 's Check Their Performance As A Food Retailers

The market is packed with many players. Previously Sainsbury and Tesco has been the dominating force in the UK grocery retail market. There are no real barriers that can thwart the entrance of a new player in the market. The most important aspect is the attainment of the economies of scale for the retailers. This is facilitated by the different types of suppliers in the market. However, the entrant must have sufficient knowledge to operate profitably in the UK market.

According to the managing director Lawrence Mallinson, who supply Tesco, Morrisons, Sainsbury’s, Asda and Waitrose, indicated although doing business with big supermarket chains can be profitable, they still control the distribution at a modest level (30%) to avoid getting price pressures from the retail giants (Independent, 2010). In contrary, specialist food retailers have smaller business scale, therefore it is more difficult for them to bargain with the suppliers due to their order is small amount compare with the order from larger chains.

According to Froud (1999) in grocery retail customers’ real expenditure on food in UK has been stable around 32 to 34 billion pounds a year since 1960 and hence the major retailers were able to achieve growth on the expense of other smaller retailers. Therefore retailers may pursuit mergers and acquisitions as a mean for growth.

And the quick ratio3 indicates the company’s ability to repay immediate commitments using cash or near-cash assets4. From the trend analysis5, the short-term liquidity level as measured in current ratio of Sainsbury has decreased significantly amid the financial crisis, resulting 0.66(2008) and 0.54(2009) respectively. It may be because those current liabilities are rising faster than current assets, or the firms investing substantial amount of its liquid assets (e.g. cash) into long-term investment, resulting a decrease in the above two liquidity ratios continuously from 2008 to 2009. Moreover, adverse trading conditions in recession may cause inventory becoming obsolete or introduction of new models by competitors. Nevertheless, as the UK economy has dragged out from recession steadily from 2010, current ratio has improved, reaching at 0.66 and is closed to the industrial benchmark Tesco at 0.69. Present quick ratio of Sainsbury is 0.38, which has improved from

The food and drink retail sector represents the largest industry in the UK, providing employment for over three million people in primary production, manufacturing and retailing. In 2003 retail accounted for 9% of gross domestic product (Datamonitor, 2003). In recent years UK supermarkets have come under increased scrutiny over their treatment of suppliers, particularly of own-label products, yet the development of strategic supply networks has been an integral part of most supermarket strategies for the past

Sainsbury’s strategy follows with their quote ‘We will make our customers’ lives easier. Great quality. Great prices. Whenever and wherever’ or following with their motto ‘Live well for less’. It is believed that their goals to retain the customers by making lives easier everyday by putting out fair prices and quality services to all. To peruse their goals Sainsbury’s have their stores in key locations so that they offer great quality products and services at fair prices all the time; changing the dynamics of the industry to suit the customers lives. Sainsbury’s Strategic Report (2015) is divided in two sections; the non-financial KPIs are as follows: product quality, Like for Like Transactions, Price perception, Sales growth, Service

The primary purpose of this business research report is to estimate the relevant disclosure form the latest annual report 2016 regards to PPE and whether these disclosures satisfies the CF 's objective and qualitative characteristics. This report examines and assess on how the PPE fulfills the requirements of AASB 116 and the qualitative characteristics. Results shows the PPE are mainly meeting the requirement of AASB 116. However, some detailed disclosure information on PPE need to be more comprehend and I believe it will give you a final termination.

Most people live close to a supermarket and benefit from this. Supermarkets are not located on high streets but they do have smaller convenient stores such as Tesco Express offering a selection of what the supermarkets do at the same price. This dominance allows supermarkets to make a lot of money, which allows them to reduce prices even further, which then brings in more money. Making the supermarkets winners in a consumer society.

In the year of 2014, there was a great growth of the retail industry in U.K, which increase 4.3% of the quantity bought in this industry (Office for National Statistics, 2014). However, with the development of some discount chains in the U.K marketplace, the business of Tesco definitely has faced some challenge. Especially, Aldi?s and Lidl?s could be considered as two examples that have a great growth of their market share through their low-price marketing strategy.

‘The UK grocery market is changing, with various channels which are needed to drive growth. (IGD.COM 2014) states that the online sector, the discount sector and convenience sector are the three channels needed to drive growth.

The grocery industry in the United Kingdom has been dominated in the last ten years by large chain Supermarkets. There has been a fight for supremacy between the likes of J. Sainsbury, Tesco, Marks and Spencer, Asda, and further south, Waitrose. Around ten years ago, Sainsbury 's used to have the top spot but their loyal shoppers started turning their heads towards Tesco and better value for money later on in the nineties.

Despite Tesco being in lead in the grocery market, the company has been in strong competition in the sector for fifteen years as said by (Mintel,2010). The company encounters extreme competition from their competitors who are advancing in the market share.

In the UK, there a small number of competitors dominating the grocery industry such as Tesco, Asda and Sainsburys which have a 70% market

The food market and the grocery store industry compose the largest retail channel network in the United States. The U.S. supermarket industry includes warehouse grocery stores, supercenters, conventional supermarkets, military commissaries, and limited-assortment and natural/gourmet-positioned supermarkets. The US supermarket industry had approximately 600.31 billion USD in sales in the year 2016, a 2% increase compared to the previous year. The US supermarket industry has become mature and has established enormous players that dominate the market. In recent days, the industry stands dominated by organic and natural products.

This financial analysis report comparing two large food retailer and wholesalers sector in the United Kingdom: Tesco PLC and J Sainsbury PLC. We collected financial data from recently published financial statements by Tesco and J Sainsbury to create financial analysis report for your review and consideration.