Analyze and compare Costco, Walmart, and Nordstrom

The general merchandise retail industry has a number of segments represented by the following companies:

Company Name

Merchandise Concept

Costco Wholesale Corporation $($COST$)$ Membership warehouse

Walmart Inc. $($WMT$)$

Discount general merchandise

Nordstrom, Inc. $($JWN$)$

Fashion department store

For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports $($in millions$)$ for these three companies:

Inventory Turnover

Costco

Walmart

$$

Nordstrom

one decimal place.

Days' sales in inventory

c$.$ Based on the results, which of the following statements is INCORRECT with regard to each company's merchandising concept?

Costco holds only mass$-$appeal items that are sold quickly off the shelf.

Walmart has attractive pricing, but the inventory moves more slowly than would be the case at a club warehouse.

Nordstorm's inventory moves slowly but at a higher margin.

Walmart inventory moves very quickly at higher margins.