Research paper on Finance

In actuality, the competition between retailers selling apparel, accessories, jewelry and other products grows stronger. At this point, it is worth mentioning the fact that the competition is the result of the growing expansion of leading companies in the global market. At the same time, companies operating in the national market still hold a strong position and may be very attractive for investors. In this regard, it is possible to refer to the experience of Macy’s, a company based and operating in the US, which has proved to be quite successful and which performance is positive at the moment. Nevertheless, the company still faces a strong competition from the part of its rivals as well as the companies faces the threat of the growing pressure from the part of multinational corporations. To understand the actual financial and marketing performance of Macy’s it is possible to compare its performance to that of a multination corporation based in the UK, Debehams, and another American company, Sacks operating in the same industry.

In fact, Macy’s holds a strong position in the market, while its financial performance remains to be stable in the course of the last six years. However, in this regard, it is possible to trace a substantial slowdown in the business development of the company in 2008-2009, but the last couple of years reveals the fact that Macy’s has started to recover. At this point, it is possible to trace the similar trend in relation to Debehams and Sacks. However, Debehams faced financial problems almost a year after Macy’s and Sacks. Nevertheless, it is obvious that all the three companies suffered from the deterioration of the economic environment. In all probability companies were affected by the drop of the buying power of customers and their focus on saving instead of spending. Even Sacks failed to avoid the negative impact of the economic recession, although the company operates in the premium segment of the market, whereas Macy’s and Debehams operate in the broader sectors of the retail industry. In fact, both companies focus on the broad customer group compared to Sacks, which focuses on customers belonging to the upper class mainly.

At the same time, the financial performance of the three companies is relatively stable at the moment. At this point, it is possible to refer to capital gains yield of each company:

Macy’s capital gains yield – current price ”“ original price)/ original price = (41,19-40,65)/ 40,65 = 0,013

Debehams’ capital gains yield ”“ (current price ”“ original price)/ original price = (82,25-77,75)/ 77,75 = 0,057

Sacks current price ”“ original price)/ original price = (11,32-11,06)/ 11,06 = 0,023

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