Abercrombie \& Fitch Co. (ANF) and TJX Companies Inc. (TJX) report the following information in their respective February 2013 10-K reports relating to their 2012 and 2011 fiscal years.

a. Compute the 2012 inventory turnover for each of these two retailers.

b. Discuss any difference you observe in inventory turnover between these two companies. Does the difference confirm your expectations given their respective business models? Explain. (Hint: ANF is a higher-end retailer and TJX sells more value-priced clothing.)

c. Describe ways that a retailer can improve its inventory turnover.

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$ millions 2012..... 2011... Sales $4,511 4,158 Abercrombie & Fitch Cost of Goods Sold $1,694 1,608 Inventories $427 680 Sales $25,878 23,191 TJX Companies Cost of Goods Sold Inventories $18,521 16,854 $3,014 2,951