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As a general rule, a retailer should strive to have a net profit margin of 1.5 to 2.5
percent.
Gross margin return on inventory (GMROI) is based on both the retailer's inventory
turnover and its profit margin.
The sales presentation is the first step in the retail selling process.
The most popular sales promotion tools in retailing are premiums, frequent-buyer
programs, coupons, in-store displays, contests and sweepstakes, product
demonstrations, and sampling.
Retailers today can expect an increase in competition from both nonstore retailers and
the introduction of new retailing formats that will change the way retailing currently
occurs.
Retailers today can achieve an above-average growth rate by maintaining their market
share, since the country's population is growing so fast.
Net profit margin is calculated by dividing the retailer's net profits by markup in dollars.
Retailers use multiple-unit pricing to encourage additional sales and to increase profits.
