Presentation

Project Overview

Source of Data

  • All sources are from The Business Intranet unless otherwise stated.

Demographics and Economic Overview

Population

  • Average population of Leeds in 2024: 535,972(Increase from 516,298 in 2020, representing a growth of 1.03% (World Population Review))

Economic Indicators

  • Gross disposable household income per head in Yorkshire and the Humber (2022): £19,249 (4.9% increase from 2021)

  • Leeds unemployment rate: 2.9% (2023), increased by 4.1% in 2024

  • Average salary in Leeds (2023): £34,354 (Varbes.com)

Business Analysis

The Business Leeds Store

  • Location: City centre, competitors include:

    • Harvey Nichols

    • John Lewis & Partners

    • TK Maxx

    • M&S

Financial Performance

  • Leeds Foodhall revenue predicted to increase by 1.65% yearly

  • Average revenue growth across other departments: 6.17% yearly

  • Expected total revenue for Leeds in 2024-25: £109,920,000

  • Expected profit growth of £6,388,000 based on estimates

  • Overall revenue for The Business (2023-24): £1,141,926,730 (up 10.3% from 2022-23)

  • Estimated revenue for 2024-25: £1,195,501,000 (an increase of £53,574,270)

Market Trends

  • Current trends in food market:

    • Increased interest in global flavors, health-conscious choices, and sustainable practices

    • Demand for diverse and nutritious options, including vegan and gluten-free products

  • Key Market Drivers:

    • Advancements in technology

    • Focus on health and wellness

    • Adoption of sustainable practices

Trends in Interest Rates and Inflation

  • Current Bank of England interest rate: 5% (expected to decrease)

  • Inflation rate in 2024: 1.7% (0.3% below target of 2%) - could lead to small increase in goods cost

Monthly Sales Revenue Analysis (2023-2024)

  • Monthly Revenue Trend

    • Comparison of Leeds Foodhall revenues from 2021-2024:

      • Revenues shown in £000's

      • Significant growth seen in specific months (January, March, December, November)

      • Mean sales figures for different years analyzed.

Competitive Performance

Revenue Efficiency

  • Revenue per store staff and per square foot rates compared across various cities:

    • Manchester shows the highest revenue per store staff.

    • York exhibits the lowest revenue in the analysis, highlighting opportunities for improvement.

    • Leeds overall performs adequately compared to other competing stores.

Recommendations for Future Growth

  1. Positive Performance Aspect:

    • Entertainment Department showed a growth of 16%, indicating successful customer engagement.

  2. Negative Performance Aspect:

    • Weak Footwear Department which only grew by 4%. Recommended actions:

      • Diversify product mix with trendy options.

      • Use customer feedback for product development.

      • Enhance marketing efforts.

      • Improve layout for footwear visibility.

  3. Growth Areas in Food:

    • Key growth months:

      • January (+23%)

      • March (+18%)

      • December (+17%)

      • November (+8.8%)

    • Growth in global markets:

      • Plant-based food: +9.4%

      • Gluten-free market: +11.3%

      • Vegan food market: +13.1%

  4. Strategic Recommendations for Foodhall:

    • Expand organic and specialty products.

    • Enhance staff training for better customer service.

    • Implement loyalty programs to attract repeat customers.

    • Optimize store layout for easier navigation and impulse buying.

Conclusion

  • The analysis highlights the positive trajectory of the Leeds Foodhall and the need for strategies to address weaker areas such as the Footwear Department while continuing to capitalize on strong sectors like Entertainment and evolving food trends. The focus on sustainable consumer practices and technological advancement is essential for ongoing growth.