Business Economics and Accounting

Abstract

In this report we have analysis the financial position and health of home Retail Group plc with the Tesco. The objective of this report is to evaluate the financial position and health of the company within the industry and whether it is beneficial to invest in this company. Home Retail Group is one the largest retailer in consumer goods. Hence, it financial health is also strong compared to it competitor. The main finding comprises of ratios, horizontal and vertical analysis of income statement and balance sheet. After analyzing these statements we came up with the recommendation regarding enhancing the productivity and other advancement in the company. These innovative advancement can make them much more above the industry and on the other hand their profitability will increase, increasing their share price.

Business Economics and Accounting

Summary of Home Retail Group plc

The Home Retail Group plc (HRG) is the UK leading retailer in consumer goods especially in home and general merchandise. The three main business segments of Home Retail comprises of: Argos, Homebase and Financial Services. Home Retail was founded in 2000 when GUS plc merged Argos and reality UK business. In 2002, they acquire Homebase and hence in 2005 they acquire 33 index stores. However, in 2007, they separated from its parent company GUS plc. They got active on London Stock Exchange in 2007. The Company includes as holding the retailers Argos and Home base, as well as their financial sectors such as Financial Services, ARG, ARG Card Services, Insurance Services and ARG Card Transactions. The company leads in jewellery, toys, furniture, sports equipment, recreational equipment and small household appliances. On second place, it leads in home improvement goods and garden products and lastly Home Retail leads in consumer electronics and major household appliances.

The group employs approximately 48,000 people and has over 1,000 branches in the British Isles. Though the company has lost approximately 4% in home and general merchandise market in 2010, the company remains the market leader in the industry. It has been anticipated that this Argos' sales will research ton £4.2 billion due to opening of the new shop. Economic performance is itself incorrect as the company displays a level of 10.8% in 2011 against a demand of 6.6% for this value. Moreover, this shows a course of improvement but still attractive enough: 6.5/20 and 11.9/20 respectively for 2010 and 2011. The company offers virtually no economic return. 0.6% in 2011 against 5.6% is required for our performance.

Summary of Tesco Plc

The major competitor of the Home Retail Group is Tesco. Tesco is one of leading food retailer in Ireland and United Kingdom with the 2715 stores in the country. Tesco founded by Jack Cohen in 1919 located at East London. Company's management was moving forward by two key people they are Sir Terry Leahy -Chief Executive and David Reid - Chairman.

Tesco's plc has an ultimate product ranges those are Groceries, Telecoms, Financial service and Consumer good. The total Revenue of the company in 2011 is £ ...