You are on page 1of 15

SHARDH

BB82566
Executive Summary

• Purpose – This presentation is prepared to recognize the future Prospect of UK


retail clothing industry based on historical data by supporting forecasted data.
• Data Collection – Ten UK retail companies were selected to collect the
historical data

• Data Processing – MS excel is used for data processing


• Summary of Findings – Historical data of UK retail cloth industry depicts an
increase in revenue throughout the year and it is forecasted to grow in coming
years as well. The adoption of latest technological trends from brick and
mortar to online shopping portal will result in reducing the operating expenses
and increasing profitability.
Outcome of Presentation
• Introduction to business intelligence and analytics
• Introduction to UK retail cloth industry
• Analysis of descriptive statistics from UK retail cloth industry
• Analysis of regression and correlation from UK retail cloth industry
variables
Business Intelligence and Analytics
• Assist in decision making process
• Data stored with great capacity at low cost
• Use to transform data into desired trends and patterns

(Chen, Chiang and Storey, 2012)


Data Collection
• List of Companies • All the data were collected from companies
• Primark Stores Limited annual report from 2010 to 2018 and
• Next Group Plc analyzed using MS excel.
• New Look Retailers Ltd • Variables
• Marks and Spencer PLC • Liquidity ratio
• JOHN LEWIS PLC • Profit Margin
• H&M Hennes & Mauritz UK Ltd • Return on Capital
• Debenhams PLC • Turnover
• Burberry Ltd • Profit and loss before taxation
• BERSHKA UK LIMITED
• Arcadia Group Ltd
• All the companies are form UK retail clothing
that have market share in UK
Average of Liquidity Ratio
Average of Liquidity Ratio(X) • Liquidity ratio determines that
either the industry is capable of
1.54
paying its liabilities or not.
• It is used for long-term decision
1.42
f(x) = 0.04 x + 0.96

1.15 1.14 1.16


making for investment
liquidity ratio(X)

1.06
1.02
0.93
• This shows that in average, the
0.9

UK retail cloth industry has been


able to meet the liabilities.
2010 2011 2012 2013 2014 2015 2016 2017 2018

Year
Profit margin and Return on capital
Employed
Profit Margin and Return on Capital • ROCE reflects a company’s ability
70
of generating profits from its funds
60
employed
50

40 • Profit margins indicates the


30 earning of a company relative to its
20 revenues.
10

0
• It indicates that companies that
-10s Li m
ite
d
ou
p
Pl
c
il e
rsL
td
nc
er
PL
C
IS
PL
C
UK
Lt
d

am
sP
LC
er
ry
L td
IL M
IT
E D
ou
p
Lt
d
leading companies ROCE have
Gr ta e LE
W
rit
z
nh rb Gr
UK
to
kS
re
ar -20
N ex
t
Lo
ok
Re
ks
an
d
Sp
J OH
N

es
&
M
au
De
be Bu
R SH
KA
Arca
di
a
possibility to increase in future as
im w ar BE
Pr
-30
Ne M

H&
M
He nn
profit margin may fluctuate. It may
Average of Profit Margin (%) Average of Return on Capital Employed
be due to operating expenses.
Turnover and Profit/loss before taxation
• Turnover represents the net
20000000

15000000
sales of a company.
• Profit and loss before taxation
10000000
indicates a company profit from
its operating and non-operating
5000000
activities
0
. c ...
... ... C ... d
• It indicates that some companies
i.. Pl ce le PL
C
ur PL Lt
d
Lt

ar
kS
to
re
sL

xt
Lo
o
Gr
kR
ou
p

nd
et
Sp
eai
n

HN
LE
W
IS
e s &
M
a
e nh
am
s

B ur
be
rry

KA
UK
LIM

i a
Gr
oup
in the industry are showing high
Ne sa nn De
b
RS
H ad
Pr
im
-5000000 N e w
M
a rk JO
H&
M
He B E A rc
turnover with less profit or loss
before taxation
Average of Turnover Average of Profit (Loss) before Taxation
Profit(loss) before taxation
• Profit (Loss) before taxation
Average of Profit (Loss) before Taxation
indicates that company earning
706966.67
from its operation before paying
513111.11
tax.
235015.56
• It indicates that industry is able
221713 204000
124155.56 129082.67
Pri Nex 28793.89 Mar JOH 31240.52
H&M Deben... Burbe... BER A

to generate average revenue


before paying tax.

-1114444.44
Profit Margins
25
• It indicates the amount of profit
20
based on every £1 of sales
15
• When the profit margin
10
decreases, companies should
5 increase the assets turnover in
0
Average of Profit Margin (%)
order to stabilize ROCE
-5 • In indicates the UK cloth retail
-10
industry has a average to high
Primark Stores Limited Next Group Plc New Look Retailers Ltd
profit margin
Marks and Spencer PLC JOHN LEWIS PLC H&M Hennes & Mauritz UK Ltd
Debenhams PLC Burberry Ltd BERSHKA UK LIMITED
Arcadia Group Ltd
Descriptive Statistics
Correlation Analysis
Regression
Conclusion
• As the historical data of UK clothing Retail industry revenue depicts a
surge in revenue throughout years, and it can be predicted that UK
clothing retail industry is expected to grow over the years, means that
UK clothing retail industry could sustain in UK market
• Liquidity ratio also depicts that UK cloth industry is highly liquid –
which means UK clothing Retail industry is able to fulfill its obligation
with its profit
REFERENCES
• A Passion for Research. 2020. February 2019 – A Passion For Research. [online] Available at: <https://softwarestrategiesblog.com/2019/02/> [Accessed 29
November 2020].
• Bickel, P. J., and Lehmann, E. L. (2012). Descriptive statistics for nonparametric models. III. Dispersion. In  Selected works of EL Lehmann (pp. 499-518). Springer,
Boston, MA
• Chen, H., Chiang, R. H., and Storey, V. C. (2012). Business intelligence and analytics: From big data to big impact.  MIS quarterly, 1165-1188.
• Fibre2Fashion, 2020. Top 3 Textile Trends Transforming The UK Fashion World. [online] Fibre2fashion.com. Available at: <https://www.fibre2fashion.com/industry-
article/8708/top-3-textile-trends-transforming-the-uk-fashion-world> [Accessed 30 November 2020].
• Fisher, M. J., and Marshall, A. P. (2009). Understanding descriptive statistics. Australian Critical Care, 22(2), 93-97.
• Mathworks, 2020. What Is Predictive Analytics? - 3 Things You Need To Know. [online] Mathworks.com. Available at:
<https://www.mathworks.com/discovery/predictive-analytics.html> [Accessed 30 November 2020].
• Raisinghani, M., 2004. Business Intelligence In The Digital Economy. Hershey: Idea Group.
• ReportLinker, 2020. The UK Clothing Market 2017-2022. [online] Prnewswire.com. Available at: <https://www.prnewswire.com/news-releases/the-uk-clothing-
market-2017-2022-300483862.html> [Accessed 29 November 2020].
• Sabanoglu, T., 2020. Topic: Online Clothing Market In The UK. [online] Statista. Available at: <https://www.statista.com/topics/5499/online-clothing-market-in-the-
uk/> [Accessed 29 November 2020].
• Solberg Søilen, K., 2016. A place for intelligence studies as a scientific discipline. Journal of Intelligence Studies in Business, 5(3), pp.35-46.
• Wunsch, N., 2020. Topic: Apparel Market In The UK. [online] Statista. Available at: <https://www.statista.com/topics/3348/apparel-market-in-the-uk/#:~:text=The
%20apparel%20and%20footwear%20market,value%20at%2066.6%20billion%20euros.&text=The%20apparel%20manufacturing%20market%20is,over%20the
%20last%20five%20years.> [Accessed 29 November 2020].

You might also like