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Woolworth

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Woolworth
BUSN 1001

1. Introduction

This report is to present the financial strengths and weaknesses of Woolworths Limited and Metcash to make recommendations to the potential investor.

Woolworths Limited

Woolworths Limited (Woolworths) is a diversified retailer, engaged in operating supermarkets, petrol stations, general merchandise stores and hotels. The company’s product portfolio includes grocery, general merchandise, consumer electronics, liquor, beverages and fuel. It offers private label and branded merchandise to its customers and operates stores under several banners. It operates 2,330 stores in supermarket division, 577 stores in general merchandise division and 284 hotels. The company, along with its subsidiaries, principally operates in Australia, New Zealand, Hong Kong, China and India. The company is headquartered in New South Wales, Australia.

Metcash Limited

Metcash Limited is Australia's leading wholesale distribution and marketing company specialising in grocery, fresh produce, liquor and other fast moving consumer goods.

Metcash upholds the interests of the independent grocery, liquor and hardware sectors through its core competencies of buying, merchandising, marketing, brand building, distribution logistics and warehousing.

2. Discussions

Woolworths have a great responsibility to satisfy millions of people all across Australia. In about 810 stores, there are a minimum of 14 million customers every week. To satisfy these customers the company make sure they offer customers the freshest of commodities for best prices. The company is looking forward to achieve this goal by increasing the interaction with the suppliers and working for more efficient ways to maintain the best prices. More training are continually provided to the employees to ensure the customers are satisfied with the environment the company has to offer.
Woolworths had an increase of 4.2% on sales which represented a

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