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The iconic retailer continues its resurgence with a strong increase in pre-tax profits of £4.6.8m (interim report 7/11/2006), with a turnover of £3942.4m with an EPS 16.39p as it completes the 2nd quarter of 226/2007 of its three-year recovery plan. However, as the CEO Stuart Rose warned “we still have much to do to ensure that we sustain growth in the long term”.
With the current market price of 688p (13/02/2007), it seems like the company has turned the corner from the days of market price 350p (2004) and well on its way to recovery. Future can only be predicted by fortune teller, what I would say is that whether this trend will continue depend on the management keeping up with customer needs, producing and providing it efficiently by managing their supply chain and also the economy of the UK will determine the fate of all the retailers which is doing enough to bring the customers to the store but with further interest rate on the horizon, demand may shrink and retailers will have to cut the prices further to generate demand at the expense of profit margins.