Select the best answer. Based upon a comparison of Table 1 (2011 figures) and Table 2

(2017 figures), it is fair to say______________.

Table 1: Selected Financials

Discount Retailing Industry 2011

($ in '000s except per share) Amazon CostCo Target Walmart

Net Sales or Revenues $48,077 $88,915 $69,865 $446,950

Gross Profit Margin-Merch 11.2% 10.7% 30.1% 24.5%

Operating Margin 1.8% 2.7% 7.6% 5.9%

Net Margin 1.3% 1.6% 4.2% 3.7%

EPS $1.37 $3.30 $4.28 $4.52

Return on Average Assets 2.8% 5.8% 6.5% 8.8%

Table 2: Discount Retailing Industry 2017

($ in 000s) except per share Amazon CostCo Target Walmart

Net Sales or Revenues $177,866 $129,025 $71,879 $500,343

Gross Profit Margin-Merch 5.6% 11.3% 28.9% 25.4%

Operating Margin 2.3% 3.2% 6.0% 4.1%

Net Margin 1.7% 2.1% 4.1% 2.0%

EPS $6.32 $6.08 $5.33 $3.28

Return on Average Assets 2.8% 7.7% 7.7% 4.9%

A. Walmart had a competitive advantage in 2017 versus Amazon, CostCo, and Target

B. Based upon ROAA, Costco and Target were at competitive disadvantages in 2011 but had

become the industry leaders versus their rivals - Amazon, and Walmart by 2017.

C. Amazon's astonishing 24% average annual revenue growth from 2011-2017 shows that the

company has a competitive advantage relative to its major competitors - Walmart, Target and

Costco.

D. Walmart maintained its competitive advantage, but Amazon narrowed "the gap" between the

two companies significantly over the period.