A retailer's actual GMROI was 25 percent,whereas its planned GMROI was 30 percent.The retailer should perform _____.

Question

Quizplus · Accepted Answer

The retailer should perform gap analysis to identify the gap between the actual and planned GMROI. This analysis will help the retailer to identify the reasons for the gap and take corrective measures to improve the GMROI. Benchmarking is a helpful tool for identifying the best practices of other retailers but may not directly address the specific gap in GMROI. Retail performance indexing is a measure of performance against a set of key performance indicators but does not necessarily address the GMROI gap. Opportunity cost analysis is a tool for analyzing the financial impact of choosing one option over another and may not directly apply to the situation of a lower-than-planned GMROI.

A Retailer's Actual GMROI Was 25 Percent,whereas Its Planned GMROI