Most of the largest UK supermarket chains are very successful; they have strong cash balances and generate large profits. The writer asserts that it is in the areas of strong…
Abstract
Most of the largest UK supermarket chains are very successful; they have strong cash balances and generate large profits. The writer asserts that it is in the areas of strong centralised control over margins, stock levels, cash flow and good lines of communication that supermarket chains have developed highly sophisticated control systems. This article looks at some of the larger supermarket chains in terms of margins and returns, working capital, labour, and the accountant's role in communication and control. It is an abridged version of an article which originally appeared in “Accountancy”, and is reproduced here with their permission.