As a start, compare the Poundland ratios vs. the Big Four latest results.
As can be seen above, they are already ahead with ROCE 15.6%, equal on Net Margin 3.7%, underperforming on Stockturn 11.1/annum, with modest Gearing 16.1%
All they - and other poundshops - need to keep in mind are the retail standards being maintained by Walmart (ROCE 18.2%, Net Margin 5.2%, Stockturn 10.6 and Gearing 51.4%)
All a NAM needs to keep in mind is the need to help them…!
1 comment:
Brian by these measures you make a valid point. And in general retail terms they are a major player.
However, until Poundland (and similar bargain stores) both offer a grocery assortment capable of satisfying a reasonable "grocery shop" AND become less non-food dominated, I don't think they qualify to be mainstream grocers.
Also their share of market is still too small.
By contrast I think that the recent improvements particularly to chilled foods made by Aldi and Lidl in their UK offer, mean they most definitely now qualify as mainstream grocers.
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