Analysis of The Position of Two Major Food Retailers of U.k. - J Sainsbury Plc And Wm Morrison Supermarkets Plc

Essay by bornedbrilliantUniversity, Bachelor'sA, March 2010

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Objective of the report--------------------------------------------- 3

Overview of UK grocery retail market-------------------------- 3

J Sainsbury's plc---------------------------------------------------- 3

Management-------------------------------------------------------- 4

Sectors and geography-------------------------------------------4

Economy------------------------------------------------------------- 5

Wm Morrison supermarkets plc---------------------------------5

4.1 Management--------------------------------------------------------- 6

4.2 Sectors and geography--------------------------------------------6

4.3 Economy---------------------------------------------------------------6

Ratio analysis---------------------------------------------------------7

Post Financial Statements Period------------------------------ 11

SWOT------------------------------------------------------------------ 12

Future plans/ prospects------------------------ -------------------13

Investment decision and conclusion----------------------------14

References and bibliography-------------------------------------16

Objective of the report

The purpose of this report is to analyse the position of two major food retailers of U.K. - J Sainsbury plc and Wm Morrison supermarkets plc so as to decide which company is in better position. Afterwards I have to suggest my friend to invest in ordinary shares of that company. My friend is a conservative investor and not a speculative one.

For comparison, I have gone through various aspects of both the companies. I have used ratio analysis as a tool to help in investment decision. Ratio analysis is a straightforward and quick means of examining the financial situation of a company.

It helps in assessing the profitability of a company. Also I have done SWOT(Strengths, Weaknesses, Opportunities, Threats) analysis of both companies to SWOT analysis shows the key areas which have a strong impact on a company's strategic development.(Johnson et al 2008).

Overview of UK grocery retail market

The following chart shows major retail supermarkets in U.K. along with their market share in March 2008.

S. No.


Market Share (%)








J Sainsbury








Source: TNS Worldpanel

J Sainsbury plc

The first Sainsbury store was opened in 1869 by John James and Mary Ann Sainsbury at Drury Lane, London. Soon it became popular and later on its branches opened in Stepney , Islington and Kentish town. Since then it has a constant track...