1.Introduction 1.1 UK economic As the UK economic continues recovery after cash, Consumer spending has played a major part in UK GDP growth. Compare to last year, the volume of retail sales in June is increased by over 4%. Look over the contribution from the four main sector in the retailer industry, and food stores accounted for 40%, similar with non-food stores. Both Non- store retailing and Automotive fuel accounted for less than 10%. (Office for National Statistics, 2016) So, Marks& spencer and Tesco would be a wise investment. 1.2 Marks& spencer Marks and Spencer (M&S) is a major British multinational retailer, headquartered at City of Westminster, London. It was founded in 1884 and now grown into a multinational retailer with their …show more content…
Now, Tesco has over 3500 stores in the UK and it has stores in 11 countries. (Tesco PLC, 2016) 2 Share prices analysis When people buy a share, they can become shareholders of this company and the share price will change with business performance and the wider environment. As an investor, people will sell their share for a high price. Figure 1 Share price movement of M&S last month (source from google Finance, 2016) The share price for M&S suffered drastic decrease after Bexist, the lowest share price is £285.20 in Jun 27. At this stage, M&S maybe issued some negative news. After Bexist, there had a recover of share price, the highest share price in the last month is £333.80 in Jul 13. In the last month, share price decreased 2.27%. It happened may because consumers’ confident decrease. Figure 2 Share price movement of Tesco last month (source from google Finance, 2016) The lowest share price of Tesco also appeared after Bexist in Jun 27, it was £153.65. The highest of last month is £178.45 in Jun 4. The share price among this month increased 0.66%. Also, compare to M&S, it shares price keep stable in last month and recovered quickly after Bexist. 3 Ratio analysis 3.1 Profitability ratios Ratio M&S 2016 M&S 2015 Tesco 2016 Tesco 2015 Gross profit Ratio 39.11% 38.65% 5.24% -3.87% Table 1 Gross Profit Ratio = Gross Profit x 100 Sales This ratio shows the management efficiency between customize the product price and control the
Tesco is a British multinational grocery and general merchandise retailer, it has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in UK, where it has a market share of around 30%.
During the time period of six months, the share price has fluctuated ranging from a high of $87.660 on April 27th, 2017 and a low of $73.240. on September 8th, 2017. e there has been a notable decrease in the share price from August 3rd ($83.970) to September 8th ($73.240) with a decrease price of $10.730 per share. The last closing share price on September 18th, 2017 was $76.690. To conclude the final share price has fluctuated from a significant change during the timeframe of six months.
Yahoo! Finance (2012) describes Tesco PLC as a company that "operates stores that primarily offer food products, as well as general merchandise, clothing products, and electrical products." In addition to that, Tesco PLC is also involved in the provision of insurance, financial as well as banking (retail) services (Yahoo! Finance, 2012). Taking into consideration the number of branches it has in various parts of the world, Tesco PLC can be regarded one of the largest retailers around the globe. Having been established sometimes in the year 1919 by Jack Cohen, the company has surely come a long way (Tesco, 2012). The phenomenal growth of Tesco PLC over time can largely be attributed to both the unwavering vision of the founder and the selection of a competent team of managers to run the company's operations during its growth phase. Currently, the company top management team comprises of its CEO Andrew Clarke, its Chief Financial Officer Laurie Mcllwee and Tim
Declining profits: Mark & Spencer’s profits are declining over the period. The company’s share price is almost at half of what it was few years ago.
The objective of this report is to analyse the UK supermarkets industry for John Lewis in order to seek their competitive advantage in the market. This report is to be presented to the Board of Directors of John Lewis Partnership.
The Earnings Per share in 2012 and 2013 were $2.90. This is an indicator that the company is still profitable since the ratio is a constant. The price per earnings in 2012 was 12.5 and 17.7 in 2013. A decrease in the price per share may indicate a vote of no confidence to investors. However, this can be attributed to the industry sector as well the stock.
Tesco plc is a global grocery and general merchandising retailer headquartered in Cheshunt, United Kingdom. Tesco is the fourth-largest retailer in the world measured by revenues, after Wal-Mart, Carrefour and Metro. The second-largest measured by profits after Wal-Mart. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK (where it has a market share of around 30%), Malaysia and Thailand.
Tesco is the leading food retailer in Britain, they have also focused on building non-food sales which are available in store and online. Tesco is one of the world’s largest retailers with approximately 4,331 stores in 14 countries which include Asia, Europe and the United States. (Tesco, 2011). See appendix 1 for a map of the countries Tesco operate in.
This document/report throws light on the business environment of Marks and Spencers and the analysis of strategic position, strategic direction, success criteria and backed up by future recommendations for the company based on all the mentioned aspects. The frameworks used to analyse the company are:
Marks and Spencer Company is one of the biggest retailers in UK, which it has known by providing the finest qualities of goods and services including clothing, home product, foods and groceries. In currently, M&S Company operates 852 UK stores, 480 international stores and e-commerce platform includes approximately 83,069 employees, while M&S Company is one of the UK’s leading market positions in Menswear, Women-wear and Lingerie products (Mark and Spencer 2016.
tesco can take advantage of its successful international expansion. tesco is in a position to share their know-how and also is able to apply technologies and know-how which will create a competitive edge over its rivals and also step its learning curve.
Marks & Spencer was once a top-of-the-line company in terms of its quality and selection. However, it is reported that the company has become" an out-of-date, uncompetitive blur on the UK stock market. The decline for Marks & Spencer began in the latter part of the 1990s and due to the pressure of a "changing economic demand causing Marks & Spencer to undergo continual business realignment"¦" (IBM, Ltd. 2005, p.1)
After years and years of pursuing Sainsbury as the United Kingdom’s largest retailer, Tesco PLC broke through in 1995 and has become not only the largest retailer in the UK, but also the world’s 4th largest retailer, trailing only Wal-Mart, Carrefour and Germany’s Metro AG. Originally, Tesco’s soul focus was the retail grocery market. As of February 2010, the grocery market continues to be Tesco’s largest source of revenue and it has accounted for more than 50% of Tesco’s £ 59.4 billion of sales. Further, Tesco does not limit its operation strictly to the United Kingdom. Currently, Tesco resides in 13 countries worldwide and operates 1,911 stores across Europe and Asia. The company has also expanded in the United
Tesco sells an expanding range of own-brand non-food products, including non-food Value and Finest ranges. It also has done quite well in non-food sales in Ireland. CDs are one of the best examples, with Tesco Ireland promising to sell all chart CDs (except compilations) for €14.95 compared with HMV Ireland or Golden Discs selling the same for just over or under €20.
Marks and Spencer (M & S) was started by Michael Marks and later joint by a partner Tom Spencer in 1884. It is one of the largest British retailers that sold clothes, home furnishings, food, gifts etc. and was formerly known as St. Michael. It has markets in Europe, Far East, America and Asia. The company suffered a series of losses and a dip in the market share from a few years before the stepping down of the then CEO, Sir Richard Greenbury, in 1999. In 2001 the company underwent a drastic strategic change and the