Why would a discount store have a lower gross margin percent than a jewelry store?
A)Discount stores are only beginning to explore gross margin in pricing decisions.
B)Jewelry stores cannot offer the variety that discount stores offers.
C)Discount stores traditionally do not profit as well as jewelry stores.
D)Discount stores have a lower priced merchandise strategy.

Question

Quizplus · Accepted Answer

Retailer's strategy differ based upon their target customer and merchandise strategy.A retailer that offers less customer service and ambiance needs less gross margin to cover operating expenses.

Why Would a Discount Store Have a Lower Gross Margin