Analysis And Solution
Supermarkets are the traditional destination for consumers looking to stock up on many of the items they use on a day-to-day basis. The need for shoppers to replenish their pantries and refrigerators typically results in frequent trips to the supermarket. For this reason, industry sales tend to be noncyclical. Competition for these dollars, though, can be intense, which helps to explain the unimpressive profit margins. Consumers typically have a variety of options to choose from when deciding where to purchase items. Not only do they often have a choice between competing neighborhood supermarkets, but they can also shop at alternative retailers, such as large national discount chains and warehouse stores.
From an operating perspective, supermarkets are a homogenous group. Factors that may cause results to vary, aside from a company's ability to execute its business plan, include geography and store formats. Generally, though, investors can use common analytical benchmarks to evaluate the performance of these retailers
There a lot of key factors which needs to be analyzed to ensure the performance of these retail chains and few of them on which VST has specializes are: