1, business scale comparison
By the end of 2003, Wal-Mart had 4,688 stores worldwide. Among them, there are 3,400 franchisees in the United States, accounting for 72.53% of the total number of franchisees; There are 1288 overseas, including 26 in China. In 2003, Wal-Mart's overseas sales revenue was nearly $4 1 billion, and its operating profit exceeded $2 billion.
In 2003, the total number of stores in Hualian Supermarket reached 1 100, accounting for only 23.5% of the total number of stores in Wal-Mart.
In 2003, Wal-Mart's net assets reached US$ 39.3 billion (about RMB 325.5 billion), which was 8.81times of Hualian Supermarket's net assets of RMB 370 million. In 2003, the total assets of Wal-Mart reached 94.7 billion US dollars (about 783.7 billion yuan), which was 572 times of the total assets of Hualian Supermarket of 65.438+37 billion yuan.
In 2003, the total number of franchise stores of Hualian Supermarket was about 24% of that of Wal-Mart, but the net assets and total assets of Hualian Supermarket were only 0. 1% and 0. 17% of that of Wal-Mart, respectively. It can be seen that the scale of the franchise stores of Hualian Supermarket is much smaller than that of Wal-Mart.
2. Comparison of profitability
In 2003, Wal-Mart's sales revenue reached US$ 244.5 billion (about RMB 2,023.9 billion), 504 times that of Hualian Supermarket's RMB 4 billion. In 2003, Wal-Mart's net profit reached US$ 8 billion (about RMB 66.5 billion), which was 1073 times that of Hualian Supermarket. In 2003, Wal-Mart's earnings per share reached $65,438 +0.8 1 (about RMB 14.98 yuan), which was 37 times that of Hualian Supermarket's 0.40 yuan.
In 2003, the total number of franchisees in Hualian Supermarket was about 24% of Wal-Mart's, but the sales revenue, net profit and earnings per share of Hualian Supermarket were only 0.2%, 0.09% and 2.67% of Wal-Mart's respectively. It can be seen that Hualian Supermarket is far inferior to Wal-Mart in terms of the overall profitability of the group company and the profitability of the franchise stores.
3. Comparison of growth rates
In 2003, the year-on-year growth rate of Wal-Mart's sales revenue reached 12.27%, which was 2.69 percentage points higher than the growth rate of 9.58% of Hualian Supermarket. In 2003, the net asset growth rate of Wal-Mart reached 65,438+02.06%, 8 percentage points lower than that of Hualian Supermarket (20.65,438+06%). In 2003, the asset growth rate of Wal-Mart reached 65,438+03.36%, which was nearly 3 percentage points higher than the growth rate of 65,438+00.55% of Hualian Supermarket.
In 2003, Wal-Mart's sales revenue was 504 times that of Hualian Supermarket, but the growth rate of its sales revenue was still higher than that of Hualian Supermarket. In 2003, Wal-Mart's net assets were 88 1 times that of Hualian Supermarket, but its net assets growth rate still exceeded 12%.
4, cost control comparison
The advantage of retail chain industry is that it can reduce costs and expenses. In 2003, Wal-Mart's sales cost ratio was 78.45%, 6 percentage points lower than that of Hualian Supermarket. In 2003, Wal-Mart's gross profit margin was 2 1.55%, which was 8 percentage points higher than that of Hualian Supermarket. In 2003, the period expense rate of Wal-Mart was 65,438+06.78%, which was 3.49 percentage points higher than that of Hualian Supermarket.
From 65438 to 0986, Wal-Mart commissioned Hughes Company of the United States to launch a communication satellite worth 400 million dollars, which is the hub of Wal-Mart's data exchange system (EDI) and the main core asset of the logistics management system. Wal-Mart's period expenses are higher than those of Hualian Supermarket, mainly because the depreciation and amortization expenses of its communication satellites enter the sales expenses.
5. Comparison of inventory management
In 2003, the inventory turnover rate of Wal-Mart was 8.08, which was lower than that of Hualian Supermarket (10.22). Wal-Mart's inventory turnover days are 44 days, 9 days more than Hualian Supermarket's 35 days. Wal-Mart's asset scale and sales revenue are much larger than those of Hualian Supermarket, but its inventory turnover days are only 9 days longer than those of Hualian Supermarket.
6. Debt burden comparison
In 2003, the turnover ratio of Wal-Mart was 0.9, which was higher than that of Hualian Supermarket (0.76). The asset-liability ratio of Wal-Mart is 55. 16%, which is much lower than that of Hualian Supermarket (7 1.73%).
The short-term loan of Hualian Supermarket increased from 276 million yuan in 2002 to 475 million yuan in 2003, a year-on-year increase of 72%. Hualian Supermarket substantially increased short-term loans, mainly used to buy out goods.
Third, the development trend of China's retail industry
China has a population of 654.38+03 billion and a land area of 9.65 million square kilometers. Compared with the development space of local retail market, Hualian Supermarket has far more advantages than Wal-Mart.
At present, it is only a few months before June 5438+February 2004 1 1 to lift the restrictions on foreign-invested commercial enterprises. In 2003, Wal-Mart maintained an asset growth rate of 65,438+03% on the basis of its total assets reaching nearly 1000 billion US dollars, which shows the aggressive offensive of the world retail chain giants.
In 2003, all the top 500 retail enterprises in the world implemented the retail chain management model. The retail chain operation mode has become the development trend of international retail industry. China's retail industry has changed to the retail chain management mode. In 2004, China's retail market share will increasingly shift to retail chain enterprises, especially large retail chain enterprises.
1, active mergers and acquisitions and passive mergers and acquisitions
In 2003, the annual retail sales of 0/00 retail enterprises (including foreign retailers) in China reached 4 129 billion yuan, accounting for 9% of the total retail sales of consumer goods in the whole society. In 2003, Wal-Mart's sales amounted to US$ 244.5 billion (about 20 17 billion RMB), equivalent to five times the total sales of the top 100 retail enterprises in China. The total sales of the three major retail enterprises in the United States account for more than 70% of the US market share.
Wal-Mart's scale advantage enables it to implement global centralized procurement and purchase goods at the lowest cost. Retail chain operation can give full play to the management advantages of the head office and implement unified management of all the franchise branches, which can not only obtain a large amount of franchise fee income, but also further expand the brand reputation of the head office.
According to the cost comparison between Hualian Supermarket and Wal-Mart, we can see that the purchasing cost of Wal-Mart accounts for 78% of the selling price, while that of Hualian Supermarket is 84%. In terms of purchasing cost alone, Hualian Supermarket has reduced its profit by 6% compared with Wal-Mart.
Hualian Supermarket and other retail chain enterprises took the lead in implementing the retail chain business model through mergers and acquisitions, and rapidly expanded their business scale. In 2003, Hualian Supermarket added 322 franchisees.
Before June 5438+February 2004 1 1, it was the general trend to re-divide the market share among domestic retail enterprises. Or take the initiative to merge other retail enterprises, or be merged by enterprises in the same industry, either. Who is active merger and acquisition and who is passive merger and acquisition depends on their respective competitive strength.
2. Scale expansion and financial control ability
The expansion of business scale is not the only sign of strong competitiveness. The expansion of business scale must be accompanied by the simultaneous improvement of management ability and market control ability, in order to achieve bigger and stronger.
In 2003, the high debt ratio of Hualian Supermarket and the cash flow generated by its business activities decreased significantly, indicating that the company needs to improve its financial control ability when expanding its business scale.
In 2003, the asset growth rate of Wal-Mart reached 65,438+03.36%, 3 percentage points higher than that of Hualian Supermarket. However, the cash flow from Wal-Mart's operating activities increased from $654.38+0.02 billion in 2002 to $654.38+0.25 billion in 2003, a year-on-year increase of 22%. In the past three years, Wal-Mart's debt ratio has remained at around 55%. It can be seen that Wal-Mart has maintained strong financial control while expanding its business scale.
If the expansion of business scale is accompanied by the excessive increase of financial risks, then the expansion of business scale can not be sustained, and it is impossible to achieve economies of scale of enterprises. Not only will it not enhance the competitive strength of enterprises, but it may weaken the competitive strength of enterprises and even fall into financial difficulties.
3. Competition of management ability
Wal-Mart spent $400 million to launch communication satellites for data exchange and logistics management, which shows its management strength.
The management level of retail chain industry is obviously higher than that of traditional retail industry. Modern logistics distribution center, modern commodity purchase and sale management, financial management and information management are the basic management standards of retail chain industry.
When expanding the scale of retail chain industry through merger and reorganization, active merger must meet the basic management standards of retail chain industry in order to achieve the expected income, otherwise it may lead to management out of control and expansion failure.
The quality and quantity of senior and middle managers in retail chain enterprises is one of the important factors that determine its expansion scale and speed. According to Wal-Mart's 2003 annual report, in 2003, Wal-Mart strengthened the training of overseas branch managers to reserve talents for the expansion of overseas franchise stores in 2004. The speed of Wal-Mart's expansion in China depends on the training speed of local management talents.
The active merger and acquisition of retail chain industry in China must strengthen the training of senior and middle managers of retail chain industry. The training and competition of senior managers in retail chain industry has become one of the focuses for Chinese and foreign retail chain enterprises to compete for market share in China.
4. Imitation and innovation of business philosophy.
In the annual report of 2003, Hualian Supermarket put forward the business philosophy of "facilitating people, benefiting people and serving the people" and continued to implement the competitive strategy of "lower cost than competitors".
In the annual report of 2003, Wal-Mart put forward the business philosophy of "customer is God", "respect for every employee" and "pursuing excellence every day", and implemented the competitive strategy of "low price every day".
In the competition of market share in China, the business philosophy of Chinese and foreign retail chain enterprises is also one of the decisive factors for the success or failure of the competition.
Learn from foreigners and control them. It is one of the sharp tools for China retail chain enterprises to defeat their competitors to learn from the advanced business ideas of international counterparts and innovate the business ideas with China characteristics.