Financial Performance within Group

Region No of Stores in Region Sales Revenue Staff Costs Net Profit before Interest & Tax Staff Cost/Revenue Revenue/Store NPBIT/Store
£ Millions £ Millions £ Millions £ Millions £ Millions
South East 77 156.8 31.4 38.2 0.200 2.04 0.50

South West 84 125.4 22.6 27.1 0.180 1.49 0.32

Central 56 99.3 18.9 13.6 0.190 1.77 0.24

North East 49 83.6 13.4 16.1 0.160 1.71 0.33

North West 42 57.5 9.8 4.7 0.170 1.37 0.11

Overall 308 522.6 96.1 99.7 0.184 1.70 0.32

Financial Performance of South East Region within Malden Books

Achievements
1 Highest Sales Revenue within the Group at £ 156.8 Millions
2 Highest Net Profit Before Interest & Tax within the Group at £38.2 Millions
3 Highest Revenue/store at £2.04 Millions
4 Highest NPBIT/store at £0.50 Millions

Areas of Weaknesses
1 Highest Staff Cost/Revenue at 0.200 (20% of revenue incurred)
 Financial Performance against Competitors
Company No of Stores Sales Revenue Staff Costs Net Profit before Interest & Tax Revenue/Store
£ Millions £ Millions £ Millions £ Millions
Malden Books 308 522.6 96.1 161.2 1.70

Boundaries 380 800.0 N/A N/A 2.11

VG Jones 365 625.0 N/A N/A 1.71

Supermarkets 488 575.0 N/A N/A 1.18

Online Booksellers N/A 400.0 N/A N/A N/A

Independents/Others 54 100.0 N/A N/A 1.85

Overall 1541 2522.6 1.64

Financial Performance of Malden Books against Competitors

Achievements
1 Revenue/store at £1.70 Millions against industry average of £1.64 (exclude Online Booksellers)

Areas of Weaknesses
1 Sales Revenue ranked ranked 4th
2 Stagnant sales revenue growth for past 3 financial year from £510 to £523Million.
 Existing Staff Cost Analysis by Areas within South East Region

Area Nos of stores Sales Revenue NPBIT Nos of Manager/Ast Managers Nos of Section Supervisors Nos of Team Colleagues
£ Millions £ Millions
A (London) 2 7.8 2.3 3 8 14
B 11 27.9 6.2 16 27 70
C 7 17.2 5.1 16 19 58
D 8 11.3 2.6 10 20 42
E 16 25.1 6.1 24 41 110
F 11 23.5 5.8 17 33 78
G 9 18.8 4.5 16 26 64
H 13 25.1 5.6 21 30 88

Total 77 156.7 38.2 123 204 524

Average/store 2.04 0.50 1.60 2.65 6.81
Proposed/store 82 1.50 2.49 6.39

Findings in South East Region

1 Nos of stores at most effluent region is lesser than competitors, example VG Jones 92, supermarkets 105.
2 Price of products perceived as most expensive among company group and competitors
3 Apperance of store most inattractive among company group and competitors
4 Availability of staff to attend to customer needs is low among company group and competitors Zone A
5 Staff morale is low as evidence of only 25% responding to employee opinion survey

Recommendations
1 To increase nos of stores from 77 to 82 as South East is an effluent region in England example London
2 Realigned Staffs to new stores within areas or adjacent to areas, example from Area B to A
3 Flattened Organisation structure by gradual promotion of Assistant Managers to Managers
4 Enhanced store appearances
5 Introduce incentives scheme to promote ownerships and entrepreneurial skills to motivate staffs
6 By reducing staff overheads can reduce price of products
7 Add product mix of stock games and stationaries to increase sales revenue
8 Provide housing allowances in tandem with growth in profit

South East Region KPIs to achieve from the above strategies

1 Increase 5 nos of new stores in South Region especially at Area A to increase sales revenue
2 Reduce staff cost/revenue from 0.20 to 0.18
3 Increase sales revenue from £156.7Million to £172.4Million (10% increase)
4 Increase NPBIT from £38.2Million to £42.0Million (10% increase)