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Costco. Unreviewed competitors: Healthieroption, higher e
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Costco. Un-reviewed competitors: Healthier-option, higher end ... Albertsons Kroger Costco Wal-Mart Industry. Net Sales 39,897 56,434 52,935.2 285,222 42,201 ... – PowerPoint PPT presentation
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Title: Costco. Unreviewed competitors: Healthieroption, higher e
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- A Financial Analysis of Albertsons
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Competitors
- Reviewed competitors
- Kroger
- Wal-Mart
- Costco
- Un-reviewed competitors
- Healthier-option, higher end stores such
- Whole Foods
- Central Market (H.E.B.)
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Brief Overview of Albertsons
- Total stores 2,487
- Stores located in 37 states
- Employees 241,000
- Profit margins 1.24
- Revenue 39 billion
- Pharmacies 2000
- Fueling Centers 236
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Historically at Albertsons
- 1969 partnership with Skaggs Companies, Inc.,
creating the first food-drug combination stores - 1999 addition of Jewel-Osco, Acme Markets, Sav-on
and Osco Drug Stores
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Strategies
- Trim the fat
- Invest in the best
- Customers first
- Set the curve
- Energize us
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Cost Control and ROC
- Require suppliers to tag pallets
- Rate of Return on Capital is lower than there
main competitors
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Customer-focus and Technology
- Shopping online
- New scanners
- Team up with Office Depot and Starbucks
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Associates
- Lawsuit Complained employees not getting paid
- Strike in California, 2004 Employees upset
about health care plan
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Social Responsibility
- Environmental focus
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Brief Summary of Operations and Environmental
Practices
- Deployment of extensive energy reduction programs
in stores and distribution centers - Pilot testing of alternative fuels for diesel
tractors and refrigerated trailer engines
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Recognition
- National Arbor Day Foundations Promise to the
Earth award (April, 2005) - EPAs Americas Marketplace Recycles! award
(November, 2005) - LEED Certification (November, 2005)
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LEED Certification
- Shaws Supermarket
- Developed on former industrially contaminated
land - Energy-efficient heating and air
- Environmentally controlled processes
- Refrigeration leak detection technology
- Water-saving fixtures
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Negative Media Publicity
- None regarding social policies
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Positive Aspects
- Creates public image
- Good business sense considering rising energy
prices
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Negative Aspects
- Sole focus on environmental issues
- Lack of diversity in social responsibility
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Performance
- 2004
2003 - Net Sales 39,897
35,436 - Net Income 474
556 - Gross Profit Margin 30.8
31.3 - Net Profit Margin 1.1
1.6
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Profitability and Turnover
- 2004
2003 - ROE 0.082
0.105 - ROA 0.026
0.036 - Receivables turnover 61.380
55.717 - Inventory turnover 9.331
8.600
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Liquidity and Debt
- 2004
2003 - Current ratio 1.051 1.187
- Quick ratio 0.232
0.304 - Cash ratio 0.067
0.074 - Debt/equity ratio 1.270 0.989
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Competitor Comparisons
- Albertsons
Kroger Costco Wal-Mart Industry - Net Sales 39,897 56,434
52,935.2 285,222 42,201 - Net Income 444 -.14
1,063.1 9054 - Gross Profit 30.77 24.94
24.61 13.3 30.91 - Margin
- Net Profit 1.24 -0.03
2.0 3.59
1.05 - Margin
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Competitor Comparisons
- Albertsons
Kroger Costco Wal-Mart Industry
- ROE 8.2
0 21.8 13
9.7 - ROA 2.6
0 9.1 6.8
2.8 - Inventory 9.331 9.139
8.64 12.1 11.2
- Turnover
- Receivables 61.38 84.55
181.6 141.693 43.7 - Turnover
- Current Ratio 1.051 1.014
.92 1.218 1.15 - Quick Ratio .232 .208
.172 .584
.5
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Recommendations
- Strengths
- Environmental responsibility
- Growth in revenue
- Customer service and using new technology
effectively
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Recommendations
- Growth areas
- Growing costs
- Ineffective labor relations
- Market positioning
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