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Improving the Profitability of Retail Merchandising Decisions

1973; SAGE Publishing; Volume: 37; Issue: 1 Linguagem: Inglês

10.2307/1250776

1547-7185

Daniel J. Sweeney,

Consumer Market Behavior and Pricing

Department stores in the United States have recently experienced a decline in corporate financial performance, particularly in the profitability of merchandising operations. The use of a refined version of the return-on-investment measure is suggested as a means of improving the financial performance of retail merchandising decisions. Results of a simulated experiment are reported indicating the positive effects on merchandising profitability of using the suggested return-on-investment decision criterion.