Module 9

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

Company Name Merchandise Concept Costco Wholesale Corporation (COST) Membership Warehouse Wal-Mart Stores, 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: COSTCO WALMART NORDSTROM Cost of goods sold $102,901 $360,984 $9,168 Inventories Beginning of year $8,909 $45,141 $1,733 End of year $8,969 $44,469 $1,945

a. Determine the inventory turnover ratio for all three companies (rounded to one decimal place)

b. Determine the number of days' sales in inventory for all three companies. Use a 365 day year and round all calculations to one decimal place.

c. Interpret these results based on each company's merchandising concept.