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FM422 DISCUSSION 2 (figs 4-7 (SG&A) (fig 4 (shows SG&A …

- - - - These expenses were essentially investments Amazon made to grow its
        business. The company explained the increase in fulfilment costs was
        related to higher sales volume, inventory and sales levels, and from
        expanding capacity
        
        Marketing spending went to online and TV advertising
        and its Associates. General and Administrative expenses (G&A) grew with
        expanding payroll and professional services
- - - - Most of the retailers’ margins remained roughly within the same range,
        with one exception—Amazon—which had a dramatic climb in gross margin
        during 2010–15.
- - - - Although Amazon had the highest share of international sales in 2015,
        its international share of sales declined by 12 percentage points during
        2010–15. This figure counts Amazon Web Services (AWS) as US sales;
        the graph is slightly less steep excluding AWS. See discussion below.
        
        The share of Costco’s international sales increased by three points
        during 2010–15, as the company’s international store count grew at a
        10.7% CAGR during 2010–15, as compared to a 2.9% CAGR for USbased
        stores.
        
        Walmart’s share of international sales remained within a range of 26%–
        29%.
        
        Best Buy’s share of international sales stepped down in 2012 and
        declined substantially during 2012–15. In the fourth fiscal quarter of
        2012, Best Buy discontinued its large-format Best Buy branded stores in
        China, Turkey and the UK, and The Phone House retail stores in
        Belgium. The company closed 211 international stores in 2012, three in
        2013, six stores in 2014 and 71 stores in 2015.
        
        When we look at Amazon again, the graph in Figure 9. can lead to the
        wrong conclusion. Amazon’s international business did not decline during
        2010–15; rather, Amazon’s North American business grew at a faster rate,
        at a 27.8% CAGR during 2010–15, compared to a still-healthy 18% CAGR for
        the international segment, versus a 25.6% CAGR for total revenues, which
        leads to the appearance of a decline.
- - - - lowe's
        
        2k15 alone
        
        remain very high throughout 2010-2015 staying within the ballpark of 33-35% gross margin
      - home depot
        
        2k15 alone
        
        remain very high throughout 2010-2015 staying within the ballpark of 33-35% gross margin
      - amazon
        
        does exceptionally well in 2015 as a standalone year, but dominates throughout the timespan of 2010 - 2015
      - target
        
        2k15 alone
        
        maintains above 30% gross margin from 2010 - 2012 but begins to see a gradual decline starting in 2013
      - walgreens
        
        2k15 alone
        
        reaches a gross margin peak in 2013 at around 28-29% and begins to decline thereafter
      - costco
        
        maintains the lowest gross margin percentages throughout 2010-2015, however is also the only company to stay above average in terms of change of gross margins for top retailers throughout the same timeframe along with amazon (all others either just below avg or very below avg with kroger being the best ex)
    - - lowe's
      - walgreens
      - walmart
      - target
      - best buy
      - amazon
      - home depot