Mr Md. Zaidul Hasan

Topics: Generally Accepted Accounting Principles, Balance sheet, Stock Pages: 5 (1762 words) Published: January 8, 2013
The Super Store Limited (2012)
The Super Store Limited is a holding company that consists of two main divisions, namely, The Store and Home House. The company is the largest discount toiletry, giftware, health, home and beauty products retailer in the Southern Hemisphere. By April 2012, it operated 164 stores throughout Australasia, employed over 3,000 staff and recorded a turnover in excess of threequarters-of-a-billion dollars. The Super Store Limited was first listed on the Sydney Stock Exchange in June 1989. It is 50.01% owned by Super-Store Holdings Limited. Since listing the average compound growth rate for both turnover and pretax profits has exceeded 22% per annum. In spite of the recession, The Super Store Limited experienced four years of consistent growth in revenues, operating profit and number of outlets in operation. This performance has been attributed to the two pronged growth strategy introduced by management in 2002/03. The strategy consists of two parts. Firstly, further developing and focusing the existing outlets. The Store outlets have been dramatically redesigned to provide a friendly and relaxed up-market shopping environment with a 12,000 item range of products while the Home House stores have been designed to offer a more restricted product range of 4,000 items to a lower income market segment. Currently, The Store and Home House have a weekly purchase base of approximately one million and 300,000 customers respectively. Aggressive expansion to take advantage of lower cost retail space available due to the recession is the second component of the strategy. The Store outlets on target to reach the objective of having 100 outlets and 120 Home House outlets operating throughout the state of Victoria by the mid-to-late 2010s. The early stages of this program have seen the number of stores increase from 80 to 130 for The Super Store and from 16 to 73 for Home House. Management and staff The Super Store Limited has articulated the desire to identify future management from within the chain and considerable effort has been devoted to improving the structure of the organization, clarifying people's roles and giving then more responsibility as well as accountability for their positions. A continued shift of accountability and responsibility down the line has been identified as a primary driver for the improved trading results and increased confidence displayed by the operational management team. The mission statement of the company and a common set of values have been developed over the years and the investment in training has been substantial as a result. All new employees are required to complete an induction program and over 30% of staff have successfully completed departmental training programs leading to several of them being promoted to senior positions. Over 20% of the 3,000 full-time staff has ten or more years of service with the company. The directors of the company and the nature of the share ownership are presented in Exhibit 1.

Technology investments As part of its overall growth strategy, The Super Store Limited has invested heavily in improved technology and distribution. Kim Harrop (CEO) firmly believes that the group should follow the latest technological developments in the global retail industry and the company has therefore spent four million dollars on real-time automation project that includes a computer network linking all stores, warehouses, regional offices and the head office. This expenditure will be followed by an investment in "back office" systems to improve re-ordering capability and further enhance stock turnover. Point of sale self-scanning capabilities is also being slowly introduced to coincide with the process of refining the information systems requirements. As of April 30, 2012 the first five of The Super Store outlets had systems in place. Distribution Investments in the distribution network have been made to strengthen the Group's capability with regard to the...
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