JCPenney and Kmart since a 2005 merger it is Sears Kmart
JCPenney and Kmart (since a 2005 merger it is Sears/Kmart ) are long-time competitors in the retail business, although they target slightly different markets. The gross margin for each company and average inventory follow for the indicated years (both have January year-ends; 2011 refers to the year ending in January of 2012):

Calculate gross profit percentages and inventory turnovers for 2011, 2003, and 1995 for each company and compare them. What trends do you observe? Which company appears to perform better? To what extent do their different performances seem to relate to their relative positions in the retailmarket?
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