The Uk Economic Continues Recovery After Cash

1986 WordsJul 24, 20168 Pages
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
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