Industry Overview U.K ( M &S, PRIMARK & TESCO) The retail sector generates almost 8% of the Gross Domestic Product of the UK. The retail industry employed 2.9 million people, as at the end of July 2012. Supermarkets dominate the UK food retail market, with 56.0% of sales.8/7/2012 5
Covered by: Md . Junayed Roman & Saikh-Bin Abedin
Company ProfileM&S one of the UK’s leading retailers, with over 21 million people visit theirstores each week. the offer stylish, high quality, great value clothing and homeproducts, as well as outstanding quality foods, responsibly sourced from around2,000 suppliers globally. The company was founded by a partnership betweenMichael Marks, a Polish Jew from Sonic, Poland (now in Belarus), and ThomasSpencer,( Introduced 1928) The create value for shareholders
Current M & S product linesWomen swearPersonal (womens) fit Lingerie and hosierySummer classics ShoesClassic collection ChildrenswearSeasonal classics BabywearBeachwear Percy Pig and ColinSportswear Caterpillar sweetsThe Indigo collection MenswearPer Unna Perfect seasonal clothesAutograph Cosmetics and PerfumesAutograph Weekend Homecare Technology Food and drink
Five years Financial graphical explanation of M & S. Turnover (£ Profit before tax (£ Basic eps Year ended Net profit (£ M) M) M) (p)31 March 2012 9,934.3 658.0 489.6 32.52 April 2011 9,740.3 780.6 598.6 38.83 April 2010 9,536.6 702.7 523.0 33.528 March 2009 9,062.1 706.2 506.8 32.329 March 2008 9,022.0 1,129.1 821.0 49.231 March 2007 8,588.1 936.7 659.9 39.1 Turnover % 60 40 Basic EPS 20 0 2008 2009 2010 2011 2012
SWOT ANALYSISStrengths Weaknesses1. High Quality 1. Clothing Lack Segmentation2.Customer Services 2. Stock Control3. Shopping Environment 3.Waste Store Spaces4.Manager TrainingOpportunities Threats1. Internet Technology 1. Strong Competitor 2. Changeable Social2. Health Eating Environment 3. Chemical Pollution3.Marketing Extending
Overview of PRIMARKA fast-growing brand Part of Associated British Foods (ABF)200 stores across UK, Ireland and EuropeGrowth stems from meeting customer needs Offers high fashion at value-for-money prices Expanding stores Moving into new marketsProducts sourced from over 600 suppliers in 16countries Europe, Asia, Middle and Far EastPrimark has responsibility to source ethically
History of Primark In 1969 the first pennys store opened in Mary street, Dublin.As of June 2010, Primark pennys had177 outlets in US and Ireland, 139 ofthem UK.Total store 238, and number ofemploy 36000.
Mission and Vision of"The mission statement of the Primark to supplyquality clothing at prices perceived to offer realvalue."“The vision statement of Primark providing qualityproducts and services to their customer throughprice strategies” product Products Women swear, menswear, children swear, footwear, accessories, lingerie and homeward.
Ethical approachPrimark’s key business objectives To be profitable To be sustainableAlso aims to act as responsible corporate citizen Helps to build confidence in the brand Reduces risk of poor publicity on ethical issues
Primark business modelBusiness model based on High sales volume Lower retail marginsValue for money stems from Economies of scale - buying volume Sourcing products efficiently Lean production Not spending heavily on advertising
SWOT AnalysisStrengths Weaknesses1.It has an organized 1. poor working conditionsbusiness structure. and disvaluing workers rights2. It offers quality clothes 2. The company could have3. Provides clothing for all problems concerning advertising.ages and sexes. Opportunities Threats1. Expanding ventures. 1.The customer in terms of2. High quality products and fashion and uniqueness. services overseas. 2. they do not have any3. Provide high quality clothes advertising whilst their to fashion conscious competitors do. people.
Company Overview of Tesco Tesco’s is a United Kingdom based international supermarket chain. It is the largest British retailer both by global sales and by domestic market share. Established in 1924. Tesco is the third-largest retailer in the www.Tesco.com is recognized as the world’s largest online grocer, Tesco’s market share of UK retailing is 12.5%.8/7/2012 23
Five forces Model of competition of Threat of New Entrants (Medium) Bargaining Power Rivalry Among Bargaining Power Of Suppliers Competitors of Buyers (Low) (High) (Medium) Threat of Substitute Products (Low)8/7/2012 25
SWOT AnalysisStrengths WeaknessIncreasing market share Reliance upon the UK marketInsurance Debt reductionTesco online Signs point to serialBrand value acquisitionsUK market leadership reinforcedOpportunities ThreatsNon-food retail UK structural change couldHealth and beauty spark a price warFurther international growth Overseas returns could fall Wal-Mart/Asda challenge International expansion
Adoption of Strategies In 1995, Tesco launched the Club card Loyalty scheme. With www.tesco.com company emphasized on E-commerce. In 2000, company tied up with a Safeway Inc to launch an online grocery shopping services Recycling of bags8/7/2012 27
Tesco Financial Analysis Income Statement 2011 2010 Increase £m £m %Revenue (sales excluding VAT) 22,631 20,735 9.1Gross profit 1,614 1,439 12.2Operating profit 1,309 1,101 18.9Profit before tax 1,289 1,092 18.0Profit for the period 938 791 18.6Attributable to:Equity holders of the parent 936 788 15.8Minority interests 2 3 28 8/7/2012
Conclusion M&S,Primark,Tesco aims to providevalue-for-money products, while keepingits ethical standards high. This involvespaying for independent audits andworking with suppliers and externalagencies on key issues. By being openwith its processes, Primark shows itscommitment to responsiblemanufacturing. This helps to assurepeople that its goods are ethicallyproduced.