Why do department stores organize some of their categories around national brands as opposed to the traditional classification scheme?
A) It is helpful to the vendors as they can make their quotas in department stores
B) It is ethical for retailers to support their vendors by selling their national brands
C) National brands are much more profitable for the retailer than the private brands
D) Merchandise can be purchased and coordinated around a central theme
E) Sales are unpredictable and retailers prefer a sure thing with national brands

Question

Quizplus · Accepted Answer

Organizing categories around national brands allows for easier coordination of merchandise around a central theme, which can be beneficial for marketing and sales purposes.

Answer: C 
 While private brands may have higher profit margins, national brands often have more recognition and consumer demand, which can ultimately result in higher overall profitability for the retailer.

Why Do Department Stores Organize Some of Their Categories Around