Department Stores Obtained Higher Per Firm Sales Than Did Major Supermarkets

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1. According to the data, department stores obtained higher per firm sales than did major supermarkets. Department stores also spent more on advertising with average annual per company expenditure of $128M, compared to an average of $35M for the top supermarkets. The average department store spent 3 times more on advertising than supermarket. 2. Analysis demonstrated a strong relationship between changes in sales and changes in advertising (correlation coefficient of about 0.9 for both groups of retailers). The regression coefficient for store and supermarket also significantly differed from 0. These regression coefficients indicated that on average, supermarket sales increase by $89 for each dollar increase in advertising expenditures. Department

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