Retail Landscape of South Africa

Best Essays

Open Document

Open Document

View Writing Issues

2987 Words

Grammar

Grammar

Plagiarism

Plagiarism

Writing

Writing

Score

Score

Retail Landscape of South Africa

A Comparative Financial Analysis of Pick n Pay with Shoprite – Changing Retail landscape in South Africa

By Sirsendu Sen

Executive Summary Following the takeover of Safeway in 2004 and successful completion of the restructuring work, WM Morrison is now ranked at 4th position in the UK (Global Rank 32nd), according to the Global Powers of Retailing Report (Deloitte LLP, 2012). To maintain the growth momentum, the Policy and Development department are currently exploring a number of expansion strategies. In particular, a couple of potential candidates for acquisition in the South African retail market have been identified as below:

1) PicknPay Stores Ltd (Global Rank 133rd) and 2) Shoprite Holdings Ltd (Global Rank 92nd) The purpose of this report is to carry out a broad level comparative financial analysis of both of these companies in order to evaluate if any of them can potentially be a right fit for our growth strategy. Approach To carry out the comparative financial analysis, “CORE” framework (Moon & Bates, 1993) has been utilised which focuses on the analysis of the key financial ratios in the context of external environment in

Continue Reading

You May Also Find These Documents Helpful

Good Essays
Leslie Fay Case
- 2643 Words
- 11 Pages
Leslie Fay Case

The use of financial ratios assists the auditor in analyzing any unusual deviations from the expected results, (Gupta, 2004). The financial ratios are then compared with the entity 's ratios for prior periods as well as with ratios for other businesses in the same industry. A comparison with the industry ratios would have warned BDO of some irregularities in Leslie Fay 's financial statements. BDO Seidman should have been interested some important ratios that would help in determining the accuracy of the financial statements that had been prepared by Polishan and his staff. The important ratios include the liquidity ratios, the profitability ratios and the operating ratios, the leveraging ratios and the solvency ratios. Of higher importance should have been the profitability apart from the gross profitability ratio.…
- 2643 Words
- 11 Pages
Good Essays

Read More
Good Essays
Cango Financial
- 1115 Words
- 5 Pages
Cango Financial

The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company.…
- 1115 Words
- 5 Pages
Good Essays

Read More
Powerful Essays
Nordstrom: a Marketing Analysis
- 10090 Words
- 41 Pages
Nordstrom: a Marketing Analysis

Nordstrom was founded in 1901 by John W. Nordstrom and Carl Wallin. From the companies beginning, the business philosophy of Nordstrom has been to provide the best possible service, selection, quality and value to its customers. This philosophy has remained unchanged for over 100 years. Today the mission of Nordstrom is still the exact same.…
- 10090 Words
- 41 Pages
Powerful Essays

Read More
Powerful Essays
The Discount and Variety Retailing Industry
- 2968 Words
- 12 Pages
The Discount and Variety Retailing Industry

In 1984, after the success of Price Club and with the increased presence of Wal-Mart 's Sam 's Club, the owner of retail chains TJ Maxx, Hit or Miss and HomeClub, Zayre Corporation launched BJ 's. With a total of 140 warehouses in 16 states, BJ 's is the third largest warehouse club retailer in the US behind Costco and Sam 's Club.…
- 2968 Words
- 12 Pages
Powerful Essays

Read More
Good Essays
XACC/280 Financial Analysis: Pepsico
- 1114 Words
- 5 Pages
XACC/280 Financial Analysis: Pepsico

To any company whether small or a large corporation, the financial analysis is very important in order for a successful business. This will determine if the company is healthy enough to invest or even to see where you are weak in the financial part of the business. It is the company’s responsibility to present accurate analysis of their financial reports. What I hope to present to you is information that you will help see the comparison of both companies within their financial standings. In this report I will present a vertical analysis and a horizontal analysis, and ratio analysis. I will also try to provide some strategies…
- 1114 Words
- 5 Pages
Good Essays

Read More
Powerful Essays
Understand the Business of Retail
- 974 Words
- 4 Pages
Understand the Business of Retail

| * Free delivery * Quicker * Buy from home * 24 hour delivery * Sales * Register for offers…
- 974 Words
- 4 Pages
Powerful Essays

Read More
Best Essays
Retail Buying
- 3282 Words
- 14 Pages
Retail Buying

In today’s highly competitive markets retailers evaluate all opportunities and possibilities to present the right product at the right price with the right promotional support in the right place. Category Management (CM), Efficient Consumer Response (ECR) and Consumer Relationship Management (CRM) are concepts that have been embraced by Retail Buyers and Retail Buying. To begin with, CM is a retailing concept to help retailers increased value to the end consumer and then increase customer loyalty, and it is also belong to ECR; ECR is managerial approach which helps retailers and suppliers to implement more efficiency, and CRM is a strategic concept used by retailers and suppliers to gain a mass of data about consumers. Even though they all have own benefits, they still have limitations. For instance, CM is difficult to apply only by retailers; ECR must grasp consumers’ expectation very accurately and CRM is a kind of investment with high costs and risks. Therefore, it is better to apply them three together.…
- 3282 Words
- 14 Pages
Best Essays

Read More
Good Essays
Trends in Non-Store Retailing
- 621 Words
- 3 Pages
Trends in Non-Store Retailing

The article I’ve chosen for this assignment is titled “Forces Driving Change in 2011: From crowd-sourced shopping to accessories to new ways to get green: The 10 trends that will define opportunity next year.” The article was published in Entrepreneur Magazine’s December 2010 issue (http://www.entrepreneur.com/trends/index.html) and was written by Jennifer Wang and Kara Ohngren. This article has several points to make, including the changes in demographics making baby boomers again the target of advertising and sales. The most interesting trend though is sales through social networking. The social networking phenomenon grows and with it, opportunities for selling are limitless.…
- 621 Words
- 3 Pages
Good Essays

Read More
Powerful Essays
Sainsbury Operations
- 2417 Words
- 10 Pages
Sainsbury Operations

This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.…
- 2417 Words
- 10 Pages
Powerful Essays

Read More
Powerful Essays
Doing Business in South Africa
- 1246 Words
- 5 Pages
Doing Business in South Africa

Ndumo, J. (2005). From structural inequality to prosperity: South Africa 's black economic empowerment plans bring more into economic mainstream. Institutional Investor, Retrieved October 16, 2007, from Business Source Premier database.…
- 1246 Words
- 5 Pages
Powerful Essays

Read More
Better Essays
Marketing: Retailing and Heterogeneous Shopping Product
- 10553 Words
- 43 Pages
Marketing: Retailing and Heterogeneous Shopping Product

1.) Dusty Moore has never owned a JVC TV, but his parents owned one and were not at all satisfied. As a result, Dusty won't even consider buying an JVC. As far as Dusty is concerned, JVC has achieved brand _____rejection_________.…
- 10553 Words
- 43 Pages
Better Essays

Read More
Powerful Essays
Retail Consolidation
- 1795 Words
- 8 Pages
Retail Consolidation

Introduction Problem Statement TheSolution How Retail Consolidation Works Implementation Summary About Us References 2 3 3 3 5 7 8 9…
- 1795 Words
- 8 Pages
Powerful Essays

Read More
Powerful Essays
Retail
- 4843 Words
- 20 Pages
Retail

Lordfel Marketing Hardware’s vision is to be the leading retail store though out the city of Navotas. They want to provide cheaper products to consumers. Lordfel Marketing Hardware wants to expand and provide accessibility to other people who are far from their current branches. Considering the hardware’s current state, the want to be a household name not just within the city they are currently catering but also to the neighboring towns as the top seller of quality goods and provides quality service to their customers.…
- 4843 Words
- 20 Pages
Powerful Essays

Read More
Good Essays
Retailing to Teens in Modern Times
- 866 Words
- 4 Pages
Retailing to Teens in Modern Times

As herds of teens make their way to the malls to do their shopping, understanding what drives their brand choices and shopping patterns is more critical than ever for today’s businesses. I can remember when I was younger, my grandparents would take me to J.C. Penney before the start of every school year to buy clothing. Then when spring came the following year, we would go again for the summer. This went on until I was about sixteen. My first employment was working as a stock boy in a fabric store. I can still remember my first paycheck. I was so happy and overwhelmed with joy that I went straight to the check cashing place to cash it and bought myself a North Face backpack. Now in 1996 having a North Face school bag meant you were part of the cool kids in school. Everyone was envious of my bag. I was very excited to be part of the social class now. In 2009, the same status still exists. Turns out that a key factor to this new generation 's startling savvy is web-based. The Internet allows teenagers to rely on each other for information about related topics. This, too, is an insight: When I was a teenager, for instance, there was no comparable way for me to obtain information from the roughly 2,000 other teenagers at my high school. The Internet really does change everything. It is true that young people have diverse interests and react differently to messages than older people do. And certainly I don 't doubt that teenagers know when they 're being marketed to. But really, at this point, is there anyone alive who can 't tell when they 're being marketed to? Teenagers don 't like to be marketed to, they know it 's happening all the time, and yet they keep on buying things that are made for and marketed to them. That doesn 't make teenagers different from practically every American who is old enough to spend money; it makes them exactly the same.…
- 866 Words
- 4 Pages
Good Essays

Read More
Better Essays
retail
- 6967 Words
- 28 Pages
retail

4. Category management is a dynamic, proprietary set of decision, not a standard, universal practice.…
- 6967 Words
- 28 Pages
Better Essays

Read More

Related Topics

Debt
Ratio