samedi 30 novembre 2019

Holiday gifts, from a consumer's perspective

I often write from an investor’s perspective. Today, it’s gonna be from a consumer perspective. Because Christimas is coming and I believe that more people should know about which stores and companies have the biggest profit margins on what you're buying.
The indicator (net margin) is not perfect, but it’s nonetheless intersting:

Reitmans (RW&CO, Penningtons, Retimans, etc) : -1%
Costco : 2%
Walmart : 2,6%
Best Buy : 3,5%
Amazon : 4%
Canadian Tire : 5,5%
TJX/Winners : 10%
Apple : 20% 30%
Microsoft : 32%
As you can see, low margins don’t always imply low costs for consumers. For instance, Reitmans doesn’t offer low cost apparel. I go there sometimes (RW&CO), and you can easily find some skirts at 100$. Despite these high prices, Reitmans doesn’t make money. That company is going right to a pitfall.

On the other hand, the relatively high margins at TJX/Winners (10%) may indicate that it’s not the place to go for apparel. Well, I go there sometimes and I think you should go there too for quality at a reasonable price.

In conclusion, net profit margins are your friend as an investor, but not necessarily as a consumer. 

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