Abstract
This paper deals with financial analysis of two large supermarket chains in the United Kingdom, namely Sainsbury’s benchmarked against Morrisons. The purpose is to evaluate whether Sainsbury’s is worth investing in at the market price. To measure the performance of the food retailers mainly Annual Financial Reports and key performance indicators will be used as a tool. Given the financial data, findings show that Sainsbury’s is a company worth investing in at the current share price for both conservative investors and those looking for growth industries. There is a high probability that Sainsbury’s will grow in the future.
Highlights
J Sainsbury plc (Sainsbury’s) is one of the nation’s oldest retailers founded in London in 1869 (Sainsbury’s & Boswell, 1969)
Sainsbury’s primarily provides groceries and marginally it is interested in property and banking
This research design was chosen in order to answer the question whether it is worth investing in Sainsbury’s at the market price
Summary
J Sainsbury plc (Sainsbury’s) is one of the nation’s oldest retailers founded in London in 1869 (Sainsbury’s & Boswell, 1969). This retailer with a long tradition is the third largest supermarket chain in the United Kingdom (UK) with its market share approximately 16% (Shannon, 2011). The aim of this article is to analyse whether Sainsbury’s is worth investing in at the market price. A case study on Sainsbury’s and Morrisons will be used as a research design in order to investigate the trends and future prospects for the companies. This research design was chosen in order to answer the question whether it is worth investing in Sainsbury’s at the market price. In the second part limitations of ratios will be explained in order to understand the differences and imperfections in the analysis
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