Financial Detective, 2005

Industry: Retailing

Companies M and N are two large discount retailers.

1. One firm carries a wide variety of nationally advertised general merchandise. The company is known for its low prices, breadth of merchandise, and volume-oriented strategy. Most of its stores are leased and are located near the company's expanding network of distribution centers. The company has begun to implement plans to expand both internationally and in large urban areas.
2. The other firm is a rapidly growing chain of upscale discount stores. The company competes by attempting to match other discounters' prices on similar merchandise and by offering deep discounts on its differentiated items. Additionally, the company has partnerships with several leading designers. Recently, the firm has divested several nondiscount department-store businesses. To support sales and earnings growth, this company offers credit to qualified customers.

Question: Identify which is Company M and N from the paragraph, using the following financial data and ratios. Elaborate on the answer.

Exhibit 1 THE EIN A NCIA I METERTIVE DORE