I would think that sales of that size give USCo significant clout with suppliers. Does it have a lower cost of goods than the competition?
In fact, its cost of goods is approximately 15 percent less than that of the competition. So it probably has lower prices. Right again. Its prices are on average about ten percent lower than those of the competition. So it seems that USCo has been so successful primarily because it has lower prices than its competitors. That’s partly right. Its success probably also has something to do with a larger selection of products, given the larger average store size.