Retail Marketing. Presentation (finance part) - Essay Example

Comparison between Whole Foods and Krogar Co SALES GROWTH It is quite evident that the performance of Whole Foods is better in terms of the sales growth. For example, in 2010, the sales growth for Whole Food was 10% while that of Kroger Co was 0.8% (Whole Foods Market Inc 31). The growth in the total sales for Whole Foods increased from 1% in 2009 to 13.6% in 2011. This is unlike the case in Kroger Co which recorded fluctuations in its total sales growth with the lowest being 0.8% and the highest being 7.

6% (Kregor Co A3). The high sales in Whole Foods may be attributed to its wider variety of products and its large store footages. The total sales growth percentage of Whole Foods was high in 2012 with a percentage of 13.6% which is higher than that of Kroger Co which was 6.6% at that period. Kroger Co had a total sales percentage growth of 0.8% in 2011 while Whole Foods had a percentage of 10.9% which indicated that Whole Foods performed better than Kroger Co. The growth in sales is an indication of a better performance and growth of a company.

In this case, therefore, Whole Foods seems to have the highest growth rate and a better performance than Kroger Co. 2. GROSS PROFIT MARGIN The gross profit margin for Whole Food is higher than that of Kroger and this can be attributed to its high operating efficiencies and low salaries, general, and administrative expenses which are lower than those of Kroger Co. The salaries, general and administrative expenses are higher than those of Whole Foods, and this is one reason as to why the gross margin of Whole Foods is higher than Kroger Co.

for the period under discussion. The gross profit margin for Whole Food increased from 1.7% in 2009 to 12.2% in 2010 and then reduced to 11.3% in 2011 after which it increased to 14.9% in 2012. The gross profit margin for Kroger Co. increased from 1% in 2010 to 8.2% in 2012. Despite of the increase recorded in Kroger Co., the gross profit margin for Whole Foods is higher which indicates increased efficiencies. 3. COST OF GOODS SOLD The costs of goods sold for Kroger Co. increased from $58,544,000 in 2008 to $76,858,000 in 2012.

The cost of goods sold for Whole Foods also increased from $5,246,468 in 2008 to $7,543,054 in 2012. The two companies recorded an increase in the costs of goods sold though Whole Foods had the highest value of the total cost of goods sold. The high cost of goods sold by Whole Foods is an indication of the improved capacity of the company as this means that the company has the capacity to handle large volumes of goods. 4. GROSS MARGIN The gross margin for Kroger Co. increased from $17,604 in 2009 to $19,893 in 2012 while that of Whole Foods increased from $2,707,444 in 2008 to $4,155,774 in 2012.

The increase in gross margin indicates that the sales of the company were more than the costs of goods sold. The two companies were, therefore, operating at above average level when it comes to production and sales. It also shows that the company was making an increase in gross profits which are attributed to improved efficiencies. For the five years the gross margin for Whole Foods was higher than that of Kroger Co. This means that Whole Foods had a higher capacity that Kroger Co. which made it perform better than Kroger Co (Kregor Co A3). 5. INVENTORY TURNOVER Inventory turnover for Whole Foods increased from $30,025in 2009 to $971,816 in 2012 recording a margin of $941,791 (Whole Foods Market Inc 31).

This means that the inventory turnover in 2012 was 96.9. This is a significant increase within a period of 3 years. The inventory turnover for Kroger Co. kept on fluctuating within the 5 years with the highest being $361,000 which was recorded in 2011 and the lowest being $45,000 in 2009. From the data, it is evident that Whole Foods turns its inventory faster than Kroger Co., and this can be attributed to the fact that it deals with the food stuff which is sold off faster. In general, Whole Foods seems to have performed better than Kroger Co.

during 5 financial years. This can be attributed to several factors like reduced operating expenses, the increased efficiency, and the type of products it deals with. Greater operating efficiencies in Whole Foods can be attributed to the reduction in selling, general and administrative expenses, advertising expenses, and lower store expenses. Works Cited Whole Foods Market Inc. (n.d.). Form 10-K. Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the Fiscal Year Ended September 30, 2012. Web. 7 May 2013. . Kregor Co. (n.d.). Notice of Annual Meeting of Shareholders.

Proxy Statement and 2011 Annual Report. Web. 7 May 2013. .