Which of the following statements about supermarkets is True?
A) Supermarkets typically produce substantial gross margins.
B) Supermarkets always use leaders as a part of their offensive pricing strategy.
C) Supermarkets need high levels of inventory turnover to achieve satisfactory returns on invested capital.
D) Given the recent changes in the retailing field, all supermarkets price defensively.
E) As a method, supermarket retailing refers to the marketing of groceries.

Question

Quizplus · Accepted Answer

Supermarkets operate on relatively low gross margins and rely on high volumes of sales and inventory turnover to achieve satisfactory returns on invested capital. This high turnover is essential to cover their significant operating costs and to generate profit.

Which of the Following Statements About Supermarkets Is True