Masao Sugiyama is the recently elected president of the Chamber of Commerce in P
ID: 3159404 • Letter: M
Question
Masao Sugiyama is the recently elected president of the Chamber of Commerce in Park Falls, Wisconsin. He is the long-term owner of the only full-service hardware store in this small farming town. Being president of the Chamber of Commerce has been considered largely a ceremonial post because business conditions have not changed in Park Falls for as long as anyone can remember. However, Masao has just read an article in The Wall Street Journal that has made him think he needs to take a more active interest in the business conditions of his town.
The article concerned Walmart, the largest retailer in the U.S. Walmart has expanded primarily by locating in small towns and avoiding large suburban areas. The Park Falls merchants have not had to deal with either Lowes or Home Depot because these companies have located primarily in large urban centers. In addition, a supplier has recently told Masao that both Lowes and Home Depot are considering locating stores in smaller towns. Sugiyama knows that Walmart has moved into the outskirts of metropolitan areas and now is considering stores for smaller, untapped markets. He also has heard that Lowes and Home Depot have recently had difficulty. Masao decided he needs to know more about all three retailers. He asked his son of a friend to locate the following sales data, which are also in a file called Park Falls.
Masao is interested in what all these data tell him and he needs some help in analyzing these data. How much faster has Walmart grown than the other two firms? Is there any evidence Walmart’s growth has leveled off? Does Lowes seem to be rebounding, based on sales? What would be the most accurate sales prediction for 2016 for each retailer? Prepare a business memo that includes forecasting analysis, graphs, conclusions (you should identify which forecasting method is the most appropriate per the metric of your choice), and specific recommendations for Mr. Sugiyama.
Annual Sales Values in Millions of Dollars Fiscal Year Lowes Home Depot Walmart 2009 15,905 38,434 137,634 2010 18,778 45,738 165,013 2011 22,111 53,553 191,329 2012 26,491 58,247 217,799 2013 30,838 64,816 229,617 2014 36,464 73,094 256,329 2015 43,242 91,511 285,221Explanation / Answer
Fiscal Year Lowes Home Depot Walmart 2009 15,905 38,434 137,634 2010 18,778 45,738 165,013 2011 22,111 53,553 191,329 2012 26,491 58,247 217,799 2013 30,838 64,816 229,617 2014 36,464 73,094 256,329 2015 43,242 91,511 285,221 2016 Walmart Growth % 107.231498 from 2009-2015 Lowes Growth % 171.8767683 from 2009-2015 Home Depot % 138.0990789 from 2009-2015 As per growth % Wallmart growth has leveled off As per growth % Lowes seem to be rebounding, based on sales