The Strongest Financial Performer

Which of the three warehouse club rivals has been the strongest financial performer in recent years? Support your answer with calculations based on the data in case Exhibits 2, 6, and 7. Use the financial ratios presented in the Appendix of the text to help you with the needed number crunching.

- Yes.

- Costco's strategy was aimed squarely at selling top-quality merchandise at prices consistently below what other wholesalers or retailers charged. Sam's strategy was to sell merchandise at the very low profit margins that will result in low prices to members. BJ's strategy was to sell high-quality brand-name merchandise at prices that were significantly lower than other competitors. The above warehouse club rivals both aim in offering a lower price than the other with differences, like:

* Costco's "treasure hunt" shopping

* Costco's limited product stocking

* Costco's almost no advertisement

* Location of warehouses

* Store design

* Product packaging

* Selling products in small sizes (BJ's)

* Store hours and operations

* Membership fees, privileges and benefits

* Owners' operating/managing way

* BJ's focus on Inner Circle

* Specialty services for members

- Yes, one rival have a better strategy than the others although by only a fraction because the warehouses' strategy was almost the same.

- No, the rivals used a nearly identical strategy and if it has a flaw, the managers justified why they are doing it and they already have a remedy for it.