Morrisons supermarket - financial report - page 12
Keywords: Morrisons,Finanial report,supermarket,performance of morrisons
By maya on 02/05/2008
Level: Master's degree (MA, MBA, MSc, MEng, MRes, MPhil etc)
Page Number: 12 of 14 pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14
food retail industry in the UK representing more than 90% of companies involved in this industry.
The Food Standards Agency is an independent watchdog established to protect the public's health and consumer interests in relation to food safety.
Economic The British economy remained stable.The economy is one of the strongest in Europe; inflation, interest rates, and unemployment remain low.
Consumer Expenditure continued to increase with an underlying rise in consumer debt, caused both by Credit Card Spending and Property Mortgages.
Latest research forecasts that UK retail sales will increase by only 11% in real terms between 2004 and 2008 due to strong downward pressure on prices, especially within food retailing.
Social UK consumers spend around 3% of their waking lives in supermarkets and are increasingly willing to make purchase of non-food items such as clothes, beddings through supermarkets (www.bbc.co.uk). Additionally, ¾ of shoppers travel by car.
People are more concerned about healthy eating especially organic food and away of “junk food”.
Sales from convenience stores increase quickly. People tend to buy luxury food or top up from them.
Technical Most of companies have applied IT systems for logistics management to optimize the supply chain, enhance transport and storage management.
Popularity of computers encourages online retailing and has become a new method for communicating with consumers.
Environmental Environmental conscious keep growing. People like to buy Green-food and are aware of rubbish, waste and its disposal.
The environment friendly image of companies is welcome by consumers.
There is strong doubt about the reliability of genetically modified (GM) food.
Legal Both UK and EU legislation is applied to UK food retailer industry covering the issues about planning, licensing, pricing, competition and customer protection e.g. Planning Policy Guidance(PPG), Competition Commission and Food Standards Act 1999.
APPENDIX 3
WM Morrison’s Plc. share price (17/10/2005-15/11/2005)
DATE OPEN CLOSE HIGH LOW VOLUME
17/10/2005 173 172 174.38 171.5 17247.78
18/10/2005 171.5 170.5 174.077 170.12 6707.501
19/10/2005 170 167 172.53 166.75 28528.88
20/10/2005 169.254 170.5 177.81 167.2 26721.04
21/10/2005 170 168 171.75 167.25 14222.49
24/10/2005 169.25 167 169.25 166.25 18970.23
25/10/2005 166.75 165.5 167.38 164.25 21530.35
26/10/2005 165.5 163 165.5 162 14926.98
27/10/2005 161.5 161.5 164.25 158.25 14835.06
28/10/2005 160 164.75 165 160 22108.77
31/10/2005 163.75 163.5 165.5 162.11 20777.74
01/11/2005 162.5 165 165.5 162.32 10188.72
02/11/2005 164.25 165 165.25 163 6776.515
03/11/2005 165 168 168.84 163.75 21210.09
04/11/2005 168.75 169.25 169.844 166.5 35152.16
07/11/2005 169.5 168.75 169.5 167.75 15293.77
08/11/2005 168.25 168 169.09 167 7221.525
09/11/2005 168.75 167.5 169 167.25 7219.95
10/11/2005 168.25 169.5 171.09 168.19 32912.21
11/11/2005 170.5 173.5 173.65 168.38 30746.43
14/11/2005 173 176.25 177.5 172.16 31611.72
15/11/2005 174.8075 173.75 176.836 172.25 8450.836
APPENDIX 4
This report provides a critical analysis of Morrison’s current performance based on ratio analysis, financial statement analysis, and share performance analysis. Meanwhile, it takes account of comparisons, including compare key figures amongst five years data, compare key figures with competitors and industry median, and compare share price performance against S&P index. All these issues provide some benchmark that helps the information can be interpreted and evaluated more comprehensive and creditable.
As mentioned before, the figures and ratios used are mainly sourced form FAME and
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