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Tesco vs Morrison - Financial Analysis

In: Business and Management

Submitted By mezzat
Words 1926
Pages 8
Introduction and Background of Companies
Tesco
Tesco PLC is an international British general merchandise and grocery retailer and listed on London Stock Exchange as TESCO. The store was founded in 1929 and today it emerged as a world’s third largest retail store with more than 50,000 employees and 6200 stores. Tesco’s headquarter is located in Cheshunt, United Kingdom. Tesco has been functioning in 14 countries across Europe, Asia and North America. With the help of private label programme that are well established, Tesco engaged in producing high quality products. A key strategy because of that Tesco is on world’s third place in retail stores sector is that the company uses and believes in own-label brands which are well-targeted containing the up-market low-price ‘Value’ and ‘Finest’ labels.
Morrison
Morrisons Plc, also called Morrison Supermarkets, is the world’s fourth largest supermarket chain in the UK. It is on the list of FTSE 100 Index of companies. Morrison all over the world considered as one of best stores that provide fresh quality food products. The company was founded in 1899 by William Morrison and headquartered in West Yorkshire, Bradford, England. Along with 132,000 employees the company is functioning with approximately 500 stores counting 14 M Local Stores around the United Kingdom. The key strategy of Morrisons is the promise to offer its customers with exceptional quality, value and service.
Financial Analysis
Financial Overview of Tesco
Tesco's share of the UK grocery market in the 12 weeks to 18 March 2012 was 30.2%, down from 30.6% in the 12 weeks to 18 March 2011. This year's statement on Christmas sales provided far more cheer. The company reported a 1.8% increase in like-for-like sales in the U.K. Today, the shares trade on a P/E of 10.9 times consensus expectations of 32.0 pence in earnings per share (EPS) for 2013. The shares also…...

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