Why would a discount store have lower gross margins than a jewellery store?
A) Discounters are only beginning to explore gross margin in pricing decisions
B) Discounters have a lower priced merchandise strategy
C) Jewellery stores cannot offer the variety that a discounter offers
D) Discounters traditionally do not profit as well as jewellery stores
E) All of these are false statements

Question

Quizplus · Accepted Answer

Discount stores typically have a lower priced merchandise strategy, which results in lower gross margins compared to jewellery stores that sell higher-priced items with higher margins.

Why Would a Discount Store Have Lower Gross Margins Than