Retail margin review
Help a fictional store understand why higher sales did not produce higher margin.
- Sample inputs
- Synthetic product sales, purchase costs, discounts and returns.
- Your tasks
- Define gross margin, compare product mix, quantify discount effects and propose a small pricing experiment.
- What to deliver
- A KPI workbook and a five-slide management review.
- Quality checks
- Distinguish gross margin from net profit and state which operating costs are excluded.
- Interview discussion
- Explain why reducing discounts could hurt volume and how you would measure the tradeoff.