Growth - Profitability - and Financial Ratios for Sainsbury- Sample

References Question: Describe about the Growth, Profitability, and Financial Ratios for Sainsbury? Answer: Introduction J Sainsbury is divided into three business segment. Sainsburys supermarkets ltd, Sainsburys convenience stores and Sainsburys bank. Sainsburys supermarket is third largest supermarket chain in United Kingdom with 16.6% of market share. Company has 598 supermarket stores and 714 convenience stores. Company also has two property join ventures: One with Land Securities Group Plc and British Land Company Plc. J Sainsbury belongs to retail industry primarily and contribution of retail industry is very important for United Kingdom and Eurozone countries for future economy growth. Report includes background of company, market position of company and financial position of company. J Sainsbury was founded in 1869 by John James Sainsbury and his wife Mary Ann Sainsbury. The first store of company was opened in London. In 1982, company started to sell products under its brand name. In 1950s Sainsbury opened first self-service store which was years ahead of its competitors. In 1974 company started employee stock option and in 1986 company started to offer organic products in store. Currently company offers more than 250 organic foods. During 1992 to 1998 company witnessed declined in its business due to change in management and strategy implemented by successor of John Sainsbury (Bloomberg.com, 2015). During 1998 to 2003 Sainsbury re-launched the brand and witnessed organic growth through acquisitions and mergers. In 2007 Sainsbury was the first British employer to implement internet only recruitment program. At the time it was estimated that it would save 4 million euros a year for administration cost. The initiative was taken when approximately fifty percent of British youth had internet access at home. It was expected that by the end of 2010 around 80% of population would have internet access. Around the same time Marks Spencer, who also started online recruitment program had to rely more on telephonic channel for recruitment process. In 2006 Sainsbury was criticized by British anti-poverty charity War on want for the condition faced by Kenyan workers supplying cut flowers to company. Sainsbury also faced food safety prosecution on more than one occasion. It was found some store used to sell products even after use by date as staff was not trained for taking safety measures properly. In 2014 company faced criticism due to removal of kosher products. After facing criticism on social media c ompany restored kosher products into stores as kosher products removal was consistent with Jewish dietary restrictions. There were the several criticisms faced by Sainsbury in recent years. Currently share of J Sainsbury trades at 255 to 256 GB p range. Company has revenue of 3.93 billion pounds in 2014 and has net income of 798 million pounds as of 2014 (Financials.morningstar.com, 2015). Industry peers of Sainsbury includes Tesco Plc, Asda Plc and Morrison supermarkets plc. Tesco is the largest retail chain in United Kingdom with market share of 28.7% followed by Asda with market share of 17.3, Sainsbury with market share of 16.6% and Morrison has fourth largest market share (11%). Tesco Plc is direct competitor of J Sainsbury compared to other peers though market size of Tesco Plc is significantly higher than J Sainsbury. Tesco operates in retail industry which has groceries, clothing and general merchandize business. Tesco also operates in telecom, digital entertainment and banking domain through subsidiaries. The business diversification of Tesco and J Sainsbury is similar and they have diversified business in same industries like banking and entertainment (Corporatewatch.org, 2015). While Morrison supermarkets has presence in food and grocery business and ASDA has presence in grocery and financial services business they are not directly competitor of J Sainsbury, though market share of both the companies is similar to J Sainsbury, as business structure and businesses of Tesco and J Sainsbury are in direct competition in same industry (the Guardian, 2015). References Financials.morningstar.com,. (2015). Growth, Profitability, and Financial Ratios for Sainsbury (J) PLC (SBRY) from Morningstar.com. Retrieved 17 December 2015, from https://financials.morningstar.com/ratios/r.html?t=SBRY Bloomberg.com,. (2015). SBRY:London Stock Quote - J Sainsbury PLC. Retrieved 17 December 2015, from https://www.bloomberg.com/quote/SBRY:LN the Guardian,. (2015). J Sainsbury | Business | The Guardian. Retrieved 17 December 2015, from https://www.theguardian.com/business/j-sainsbury Corporatewatch.org,. (2015). Tesco | Corporate Watch. Retrieved 17 December 2015, from https://corporatewatch.org/company-profiles/tesco Morrisons-corporate.com,. (2015). Corporate - Morrisons. Retrieved 17 December 2015, from https://www.morrisons-corporate.com/ the Guardian,. (2015). Asda | Business | The Guardian. Retrieved 17 December 2015, from https://www.theguardian.com/business/asda