Busines comparison between Tesco & Sainsburys

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The comparison between Tesco & Sainsburys

Amir Latif

Introduction:

I am to make a price comparison of Tesco to Sainsbury. I had made the following steps to research, I had the information about the turnover of Tesco and Sainsburys in the last few years. I also had a list of items taken from Tesco and Sainsburys (Own branded, Branded and fruit and veg). I then had a shopping basket to do a price comparison between the two stores in a week and a year etc...

The following is my coursework:

It is shown in my price list comparison that Tesco is cheaper in price than Sainsburys. I have also researched and found out that Tesco's turnover is much higher than Sainsburys, from 1999 to 2001. In 1999 the turnover of Tesco was £17,158.00 m however Sainsburys turnover in 1999 was £16,433.00 m, the difference is that Tesco made £725.00 m turnover more than Sainsburys. Those results were only 1999, there are also results of turnover for 2000 which is the following:

In 2000 Tesco's turnover (in BP) was £18,796.00 m, were as Sainsburys turnover in 2000 was £16,271.00 m, thus the turnover difference between the two was Tesco made £2,525.00 m more turnover than Sainburys. As you can see in this result that Tesco is making more money in 1999 and in 2000, also that Sainsburys turnover in 1999 to 2000 did not increase but decreased. Therefore Sainsburys was doing badly in 1999 and 2000 compared to Tesco, but Sainsburys did improve over the next years but it was still not making as much turnover as Tesco was, thus Tesco must have more customers than Sainsburys and they are selling more products than Sainsburys. Sainsburys is not competing as well against Tesco as Tesco is against Sainsburys, I personally believe that this may possibly be due to the fact that Sainsburys prices are higher than Tesco's.

The following is the statistics of Sainsbury's turnover from 1999 - 2001:

Sainsbury (J) PLC (SBRY.L) As of Wednesday December 19

Business Summary

Food retailing and financial services

Sector:Food & drug retailers

Index:FTSE 100

Key Dates: Int - late Nov; Final - late May.

Statistics at a Glance -- SBRY.L (in British Pounds)

Income Statement

999(13)

2000

2001

Turnover

Mill. £

6,433.00

6,271.00

7,244.00

Pre tax profit

Mill. £

888.00

509.00

434.00

Norm earn per share

p

30.90

24.00

9.10

FRS3 earn per share

p

31.10

8.20

3.70

Div per share

p

5.30

4.30

4.30

Balance Sheet

999(13)

2000

2001

Intangibles

Mill. £

-

316.00

278.00

Fixed assets

Mill. £

6,409.00

6,563.00

6,215.00

Fixed investments

Mill. £

41.00

98.00

64.00

Stocks

Mill. £

843.00

986.00

763.00

Debtors

Mill. £

2,015.00

2,038.00

2,460.00

Cash, securities

Mill. £

742.00

551.00

487.00

Creditors short

Mill. £

4,549.00

4,720.00

4,325.00

Creditors long

Mill. £

812.00

,041.00

,078.00

Prefs, minorities

Mill. £

45.00

49.00

53.00

Ord cap, reserves

Mill. £

4,644.00

4,742.00

4,911.00

Mkt capitalisation

Mill. £

7,380.00

5,446.00

7,434.00

The following is the statistics of Tesco's turnover from 1999 - 2001:

Tesco PLC (TSCO.L) As of Wednesday December 19

Business Summary

Operation of retail superstores and associated activities

Sector:Food & drug retailers

Index:FTSE 100

Key Dates: Int - mid Sep; Final - early Apr.

Statistics at a Glance -- TSCO.L (in British Pounds)

Income Statement

999

2000

2001

Turnover

Mill. £

7,158.00
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8,796.00

20,988.00

Pre tax profit

Mill. £

842.00

933.00

,054.00

Norm earn per share

p

9.37

0.20

1.30

FRS3 earn per share

p

8.93

9.89

1.10

Div per share

p

4.12

4.48

4.98

Balance Sheet

999

2000

2001

Intangibles

Mill. £

12.00 ...

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