Industry Net Sales COGS Operating Expense Operating Income Industry 100% 71.9% 23.3% 5.

9% Walmart 100% (6.4B) 74% (4.7B) 1.9% (1.2B) ~8.5% (0.5b)

Operating expenses Payroll Advertising Rental Miscellaneous

Industry 11.2% 2.3% 2.2% 7.6% 23.3%

Walmart 10.1% (options) 1.1% 1.8% 5.4% 18.5%

Locational (Rural) No regional office

Shrinkage

2%

1.3%

Rental savings Stronger distribution network, hence they free up space, and requires less warehousing cost.

Because Walmart focused on a smaller graphical region, they were able to fly their VP to the stores and get work done

Next to each other WM 1.3<KM

4-6miles 18miles Walmart 6% > kmart 7.6%<Target 10.4<Kmart Possibly to entice people to go to their store because the distance are quite far

Make assumptions

And show your workings