Analyze and compare Costco, Walmart, and Nordstrom
The general merchandise retail industry has a number of segments represented by the following companies:
Company Name
Merchandise Concept
Costco Wholesale Corporation COST Membership warehouse
Walmart Inc. WMT
Discount general merchandise
Nordstrom, Inc. JWN
Fashion department store
For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports in millions for these three companies:
Inventory Turnover
Costco
Walmart
Nordstrom
one decimal place.
Days' sales in inventory
c Based on the results, which of the following statements is INCORRECT with regard to each company's merchandising concept?
Costco holds only massappeal items that are sold quickly off the shelf.
Walmart has attractive pricing, but the inventory moves more slowly than would be the case at a club warehouse.
Nordstorm's inventory moves slowly but at a higher margin.
Walmart inventory moves very quickly at higher margins.
