Macy's and Costco have targeted different customer segments. Which retailer would you expect to have a higher
Question:
Macy's and Costco have targeted different customer segments. Which retailer would you expect to have a higher gross margin? Higher operating expenses as a percentage of sales? Higher operating profit margin percentage? Higher inventory turnover and asset turnover? Higher ROA? Why?
Step by Step Answer:
Gross margin gives a retailer a measure of how much profit it is making on merchandise sales without ...View the full answer
Retailing Management
ISBN: 978-1259573088
10th edition
Authors: Michael Levy, Barton Weitz, Dhruv Grewal
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Which country would you expect to have a higher rate of investment: A catch-up country or a cutting-edge country?
-
San Jose Goodwill Bank has been experiencing signicant competition from nonbanking nan-cial service providers such as mutual funds. As a result, interest rates were lower, and the bank found it more...
-
In the following exercise, you are required to review the Basis for Conclusions (BCs) for the standard(s) that provide the accounting guidance for this topic. Because the BCs is generally not...
-
Suppose you are the manager of an investment fund. The fund is invested in following three assets with the following investments and betas: Stock Shares C Price per share 50,000 $50 MCD 10,000 $200...
-
Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. The company uses the perpetual inventory system. DATE TRANSACTIONS...
-
What should the interviewer be aware of when taking notes during an interview?
-
Form a small group (four to six people) and carry out an interview role play for this position. Half of the team should represent the company and the other half act as applicants.
-
Plush Decor, Inc., is considering three possible countries for the sole manufacturing site of its newest area rug: Italy, Spain, and Singapore. All area rugs are to be sold to retail outlets in the...
-
Pokmon is a group of adorable creatures peacefully colonizing a planet until humans come along and make them combat each other in order to get shiny badges and we can call them Pokmon masters. 2. In...
-
On 1 July 206 Mumtaz started a business. The following are her transactions for the first two weeks of trading: July 1 Mumtaz paid capital, $50,000, into the business bank account 2 Bought premises,...
-
A supermarket retailer is considering the installation of self-checkout POS terminals. How would the replacement of cashiers with these self-checkouts affect the elements in the retailers strategic...
-
Why do investors place more weight on comparable-store sales than growth in sales?
-
A dart leaves the barrel of a blowgun at a speed v. The length of the blowgun barrel is L. Assume that the acceleration of the dart in the barrel is uniform. a. Show that the dart moves inside the...
-
The Production Division started 80,000 units of production during October but had 0 units of beginning work in process at the start of the period, and total physical units to account for were 80,000...
-
Blue, Inc. earns $25M of taxable income through its U.S. operations and $10M through its wholly-owned French subsidiary. The French subsidiary did not pay any dividends to Blue during the year. What...
-
The issue facing MMBC is whether MMBC should introduce a light beer. Using breakeven analysis to help MMBC to make decision. To help MMBC to make decision, please calculate what is required for...
-
The manager of a home appliancecompany, where welding is a very common operation, is concerned that too much pollution in the workplace may be negatively affecting employee morale. The manager...
-
Consider the computation of the landing fee per unit of aircraft weight at Airport AP . Airport AP uses a compensatory system of charges . If instead it based charges on residual costs, would have to...
-
Wendy fills her gas tank completely and makes a note that the odometer reads 38,451.4 miles. The next time she put gas in her car, filling the tank took 12.6 gal and the odometer read 38,687.0 miles....
-
Stephen Schor, an accountant in New York City, advised his client, Andre Romanelli, Inc., to open an account at J. P. Morgan Chase Bank, N.A., to obtain a favorable interest rate on a line of credit....
-
Which of the pricing strategies discussed in this chapter are used by your favourite retailer? Do you think theyre used effectively? Can you suggest a more effective strategy?
-
What is the difference in the pricing strategies of ebay.com, priceline.com, and staples.com? Which firm do you think will be the strongest in 10 years? Why?
-
A departments maintained markup is 38 percent, reductions are $560, and net sales are $28,000. Whats the initial markup percentage?
-
How do advanced indexing techniques, such as B-trees, hash indexing, and bitmap indexes, improve query performance in RDBMS, and what factors should be considered when choosing the appropriate...
-
Assume that CAPM holds. You are given the following information about stock X and the market portfolio, M: E(r) Riskless Asset (f) 0.05 (5%) 0.00 Stock X ? 0.40 Market Portfolio 0.10 0.20 (M) You are...
-
On January 1, 2024, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King's sales revenue, with a...
Study smarter with the SolutionInn App