Improving the profitability of retail merchandising decisions—Revisited |
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Authors: | Michael A McGinnis DBA Myron Gable PhD R Burt Madden PhD |
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Institution: | (1) Shippensburg University, Shippensburg, USA;(2) University of Arkansas at Little Rock, Little Rock, USA |
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Abstract: | Despite the importance of managing retail profitability, little work was been reported in recent years that evaluates the
effectiveness of various retail profitability performance measures. In this article the authors use regression analysis to
evaluate the usefulness of Gross Margin Return on Inventory Investment (GMROI). The results suggest that GMROI warrants serious
consideration for use in retail control and planning activities. |
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