Shooting down a star: systems-driven retailers are thriving in a low-growth environment while a former star achiever fades

Article Abstract:

Kingfisher PLC has become the latest retail group to fall from grace in the eyes of investors. Since the start of 1994, Kingfisher stock has performed lamentably, falling almost 40% in just 14 months, as confidence in it has dropped with the realization by investors that the company's weakness in systems-driven retailing may lead to significant losses in both market share and revenue. While not all of Kingfisher's retail units are performing badly, as shown by the consistently strong performance of its B&Q and Darty chains, its flagship Woolworths chain is known to have suffered because of its poor systems development capabilities. So too have the Superdrug and Comet chains, which are known to have fallen behind their rivals in the strategic use of information technology in retail management. Observers believe that Kingfisher's plight may force it to unbundle to allow the separation of its stronger units from its weaker ones.

Retail Stores, Management, Usage, Kingfisher PLC, Information systems

---

Competing for the consumer's attention

Article Abstract:

Retail profits will be hurt by the Chancellor's attempts to counteract the deteriorating balance of trade. Interest rates are being increased in an attempt to reduce domestic demand for foreign goods. The retail growth rate is expected to fall from 5% in 1988 to 3% in 1989. Retail profitability is also going to be hurt by major increases in shop rents. The rising trend in wage rates will hurt retailers. The recent increase in numbers of retailers combined with a demanding consumer market means the competition will be high and it will be difficult to pass costs onto the customer. Major retailers are slow to expand to foreign markets. A recovery is not expected for at least two years.

Interest rates, Rents (Property), Great Britain

---

A false dawn breaks over the high street

Article Abstract:

Increased activity in the British retail sector during the 1992 Christmas season has given false hopes of greater retail demand in 1993. Instead of the expected economic recovery, the UK is experiencing a rising unemployment rate, collapsed consumer confidence and a projected consumer spending growth of +1%. Consumers have little reason to increase their spending and if they choose instead to save their money or reduce their debts, the retail industry may well face zero growth in sales volumes in 1993. Competition is likely to become fiercer in the coming year considering the focus given to retailing and the absence as yet of any indication of retail demand contraction.

Retail Stores, NEC, Forecasts and trends

Similar abstracts:

• Abstracts: Professional versus generic retail services: new insights. Patient satisfaction: a matter of choice. The nature of problem recognition and search in the extended health care decision
• Abstracts: Auditing functions for internal control systems with interdependent documents and channels. A simulation analysis of the power characteristics of some popular estimators under different risk and materiality levels
• Abstracts: Similarities and contracts in payment systems. It's the old time religion, but is it good enough for today? Bank holding company de novo entry and banking market performance
• Abstracts: Alimony payments may be made in as few as three years and still be deductible
• Abstracts: The strategic agenda: accounting for issues and support. The dilemma of implementing controls: the case of managerial accounting

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.