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Zolfo Cooper analyse this week?s significant results

Dan Coen, director at advisory and restructuring firm Zolfo Cooper, comments on the retail industry and some recent high profile retail results:

J Sainsbury’s:

Sainsbury’s is on track to overtake Asda as Britain’s second biggest supermarket by market share. Despite a fall in profits, the supermarket has increased sales thanks to the rapid growth of its convenience stores, ecommerce offering and its Tu clothing and homeware range.

With its Tu range, the retailer has been able to capitalise on well-established relationships with its customers and expand its product offering. Sainsbury’s has also benefitted greatly from having built a strong portfolio of convenience stores at a time when consumers are looking to shop more locally. Further expansion in this area will help Sainsbury’s continue to power ahead of its rivals.

WM Morrisons:

Morrisons has paid the price for not selling food online. However, a turnaround may be on the horizon as the grocer is poised to launch an online offering, as well as rolling out up to 100 M Local convenience stores.

Partnering with the likes of Ocado would certainly give the supermarket a ready-made platform for a successful online business. However, the joint venture remains a rumour and Morrisons may need to re-think its strategy if a deal is not confirmed in the coming months.

SuperGroup:

SuperGroup continues to fight for growth against the odds. Whilst many have been waiting for the company to fail, CEO Julian Dunkerton and his team have remained steadfast. The Superdry parent group has focused on operational and efficiency improvements and, in doing so, has laid the foundations for future growth.

Retailers who follow SuperGroup’s lead, will be best positioned to meet the increasing demands for multichannel offerings and be the growth stories of the future.

This was posted in Bdaily's Members' News section by Zolfo Cooper .