edf40wrjww2CF_PaperMaster:Desc
Reviewing the past five years sale from 2003-2007, progressive growth have been noticed. However the percentage change curve is facing downward trend. (Exhibit _Sales fig: 1) In one way “Integrating Pricing” differentiates Leon from its competitors where they offer, everyday lowest prices, free & fast local delivery, and largest selection of quality home furnishings under one roof.
New Product line in contemporary style at reasonable prices has also helped in attracting new customers. Efficient Sourcing of this product line and flow of merchandise from warehouse to store location and speedy delivery to customers has gained customers confidence and subsequent sales growth. Leon's award-winning advertising provides customers with all the information needed to make a thoughtful and satisfying purchase.
Sales of$637.456 million in Year 2007 were a year of record sale. This is mainly attributed to opening of new stores in Quebec and Newmarket, and a franchise store in Bancroft, thus bringing the total number of corporate stores to 35 and Franchise stores to 28 (Exhibit_Sales,Table-1). Sales by franchise store during the year end December 31, 2007 amounted to 195,925,000 [2006-177,167,000] which contributes only 10 % in the cash flows, in term of royalties.
Strategic decision of acquisition of Appliance Canada Limited will provide a significant entry into the, wholesale distribution market of major home appliances to builders and apartment landlords. Secondly the company will also maintain retail selling of higher-end appliances to the public. Due to the present state of slow economy, and declining housing demand, the sales growth is still be expected to remain grow ...