The Kroger Co. was founded in 1883 and is one of the largest retailers in the world, based on annual sales. Publix Super Markets, Inc. operates 1,167 grocery stores throughout the southeastern and mid-Atlantic United States. It is employee owned, and its stock is not available for purchase by the general public. Publix is usually rated in the top three for customer service among national grocery store chains.
The following data were taken from these companies’ 2018 annual reports. All dollar amounts are in millions.
Required
a. Before performing any calculations, speculate as to which company will have the highest gross margin and return-on-sales percentage. Explain the rationale for your decision.
b. Calculate the gross margin percentages for Kroger and Publix.
c. Calculate the return-on-sales percentages for Kroger and Publix.
d. Do the calculations from Requirements b and c confirm your speculations in Requirement a?
