Devil in the detail
I was looking at some Bike industries just trying to figure out what was going on with the retail margins that are being used. And this is what I came up with (I've mangled the numbers a little– but the proportions are right):
| Where | Total | FirmA | FirmB | FirmC | FirmD | FirmE |
|---|---|---|---|---|---|---|
| Bike stores | 340 | -90 | -42 | -52 | -90 | -90 |
| Dept. stores | 540 | 190 | 105 | 125 | 120 | 0 |
| Sports stores | 660 | 220 | 135 | 135 | 165 | 0 |
So what does it all mean? Well, not a lot if you don't know the retail margin or the amount of extra support being given. But I'd suspect that one firm has an explicit strategy in this area.