Retail Store Industry Study – Part One

 

 

Some industries have special issues that differentiate them from other types of companies.  Our first foray into an industry study will be the retail sector. There are many retail industries within this sector.  To make it easier, I’ve chosen one that has a smaller number of participants – Mass Merchandisers – also known as “Retail Stores.”

 

Every company that provides research on public companies has its own way of categorizing sectors and industries.  To simplify our lives and our research, we will use Value Line’s for our club study purposes.

 

The attached documents are also posted in the Bivio Files Section under Retail Store Industry Study.

 

Here is our agenda for Part One:

 

1.                  Review the Value Line Sector Analysis to see where Retail Stores fall among the other industries.

See VLSectors.pdf (in the Retail Store Industry folder)

 

2.                  Review the Value Line Issue #11 cover page, which covers all stocks in the VL Retail Store universe.

On the back of this page, you will find VL’s Industry Report.

See VLRetailListpdf.pdf and VLIndustryReport.pdf

 

3.                  Use the following list of resources to learn everything you can about the Retail Store industry.  You will be looking to learn about issues of importance like geographical location, inventory control, same store sales, and how companies are using technology and the internet, etc.  Remember that individual companies’ websites will also have specific industry information, too.

 

4.                  Make a list of any significant information that you feel is worth sharing with the club.  Keep it short.  Copies are not needed.  We will be sharing our findings verbally at the October meeting.

 

5.                  Then, review the Value Line pages of the companies in the Retail Stock Industry.  Read the business description and the analysts’ reviews, and note the past and projected growth rates. 

 

6.                  Using OPS (or teaming up with someone who has OPS), run SSGs on these stocks, and choose 1-2 stocks that you feel would be the best companies in this industry to own.  (Hint: you are looking for quality in Sections 1&2 of the SSG) Bring SSGs on your choices to the meeting.  No copies needed.  No in-depth stock study is needed.

 

The following articles, research reports and websites are resources only.  You are not expected to read them all.  Just try to familiarize yourself with the industry.  With all these resources, it will be interesting to see how our information differs!  And by all means (!), if you find any interesting articles or websites, share them with the rest of us on the Bivio message board!  You can either attach a copy or provide a link.

 

ARTICLES & REARCH REPORTS OF INTEREST ON OUR WEBSITE:

 

In the Retail Store Industry folder, I have placed the following articles and research reports:

 

What Drives Shareholder Value?  A research summary from Accenture

See marketmakers.pdf

 

Extreme Value Retailing – Identifying Growth and Performance Characteristics from USBancorp/Piper Jaffray

See PiperJaffrayRetailReport.pdf

 

Good Post on Costco from the Motley Fool Berkshire Hathaway Message Board

See FoolArticleOnCostco.doc

 

Retail Stock Check List by Amy Crane

We will be using this resource in Part Two of our study.  From our homepage, you will find it on the Catch-All Corner page.

 

ONLINE RESOURCES FOR RESEARCH:

 

The Cole Library – Industry Data Finder 

http://www.rh.edu/library/industry/retail.htm

This is a direct link to the retail Industry page.  It’s a one-stop-shop!

 

The Kinsey Quarterly Report

http://www.mckinseyquarterly.com/category_editor.asp?tk=::20&L2=20

Excellent research articles about issues pertaining to the retail industry.

 

Same Store Sales Information

http://www.retailforward.com/freecontent/perf_sales.asp

 

Retail Stock Investor

http://www.retailstockinvestor.com/

A good place to learn the basics.  Check out their 101 classrooms.

 

U.S. Business Reporter

http://www.activemedia-guide.com/specialtyretailing_industry.htm

Interesting information on issues that affect the retailing industry.

 

Business 2.0

http://www.business2.com/webguide/0,1660,2873,FF.html

Business search engine with many links to retail.

 

Search Engine Results from Dogpile.com:

1. Retail Industry Newsletter
About Retail Industry Newsletter - Convenience Stores, Supply Chain, Top Online Retail Performers, Online Shopping Returns, Mystery Shops, The Evolution of E-tailing, GIS, BIND, Retail Jobs.
http://retailindustry.about.com/library/nl/01/blnl010227.htm?iam=dpile_1&terms=retail+chain+stores

2. Retail
Information and resources for starting and running a successful retail business.
http://sbinformation.about.com/cs/retail/index.htm?iam=dpile_1&terms=retail+chain+stores

3. Study of IT Growth Opportunities - POS Kiosks CRM
The next 12-18 months should see excellent growth opportunities for POS Systems, Kiosks, and Customer Relationship Management Systems in the Chain Drug Store market according to a new study released by IHL Consulting Group.
http://retailindustry.about.com/library/bl/q3/bl_ihl073101.htm?iam=dpile_1&terms=retail+chain+stores

4. 10 Quick Wins to Turn Your Supply Chain into a Competitive Advantage
10 Quick Wins to Turn Your Supply Chain into a Competitive Advantage
http://retailindustry.about.com/library/bl/bl_ksa0112.htm?iam=dpile_1&terms=retail+chain+stores

5. Retail Sales By Retailer
Top retail stores and industry sales figures, annual reports and earnings data by retailer.
http://retailindustry.about.com/cs/sales_retailers/index.htm?iam=dpile_1&terms=retail+chain+stores