Managing Finance & Decision Making Essay Example | Topics and Well Written Essays - 3000 words

Managing Finance & Decision Making - Essay Example The retail sector is expected to show growth in all the categories and sub-divisions: electrical, groceries, clothing and footwear, cosmetics, home-ware, floor coverings and furniture, gardening as well as e-retail, in the coming years. (Tesco, 2010) The grocery and the e-retail will be the most important divisions in the coming years. According to British Retail Consortium, the sector sales in the country amounted to GBP 293 billion in 2010. The retail companies based in the United Kingdom provides services to millions of people around the globe leading in grocery, clothing, and home-ware. This sector supplies employment to 11 percent of the total workforce in the country: employing around 3 million people. It contributes 8 percent to the country’s GDP and accounts to be a major part of the country’s exchequer. (Invest in UK, 2010) The retail sector in the United Kingdom is oversaturated with the a small number of big players controlling the market. According to Britis h Retail Consortium, there were 286,680 retail outlets in the country as of 2010. According to a research performed by the TNS Kantar Worldpanel, the three major players of the retail industry in the United Kingdom, with respect to market share, are: Tesco with 30.5 percent Sainsbury with 16.6 percent ASDA with 16.5 percent 1 Despite the setbacks in the economy: rising prices, fuel costs, spending cuts, the investors look forward to strong growth and positive sales growth in the retailing. They expect the economy to heal itself in the coming months and realize its true potential. Tesco A global merchandising and grocery store based in the United Kingdom leads the ‘Big Four’ supermarkets group. The brand is the largest within the boundaries of the country with a market share of 31 percent and the third largest in the global market with respect to sales revenue. The company operates in 14 different countries through 4,811 different types of stores. It provides everything under one roof: from grocery to appliances, clothing to shoes, tires to gardening tools as well as home wares. (Tesco, 2010) Tesco plans to invest GBP 27 million to reduce its carbon footprint by 2020. â€Å"At Tesco, we care about the environment and want to lead the way in preparing for a low carbon future. We are now ready to unveil the scale of our plans to use Combined Heat and Power to cut our carbon footprint2.† The brand is ranked as the second largest in the world with respect to profits. The brand in the fiscal year 2010 showed strong growth: sales showed an increase by 6.8 percent whereas it’s pre-tax profit increased by 10 percent. Therefore, the financial gurus believe that the company has now transformed itself into a fully globally diversified business and is en route to strong future growth. (Tesco, 2010) Sainsbury J Sainsbury, with a market share of 16.6 percent, is ranked as the second largest retailer in the United Kingdom. The company provides an en ormous assortment of goods and services under one roof to its 19 million customers through the 872 stores spread across the country. The products range from grocery to appliances, tires to gardening, clothing to cosmetics as well as furniture. (Sainsbury, 2010) Sainsbury has become one of the pioneers of dedication. It has planned to invest GBP 40 million into the sustainable farming over the period of next three years that will allow the farmers to augment their productivity and