Retailing

TABLE 11-1: THE WORLD‘S TOP 100 RETAILERS (2003)

5 Year Retail Number of

2003 Retail Sales Compound Countries; On
Retailer (by rank; home Sales Annual Growth Which
country) (rank in 1998) Retail Formats (US$ million) Rate Continents (i)
10 (N. Am., S.
1. Wal-Mart Stores, Inc. Discount, Hypermarket, Supermarket,
256,329 13.2% Am., Asia,
(USA) (1) Superstore, Warehouse
Eur.)
Cash & Carry, Convenience, Discount, 30 (Af., S. Am.,
2. Carrefour (France) (8) 79,796 20.8%
Hypermarket, Specialty, Supermarket Asia, Eur.)
64,816 16.5%
3. Home Depot (USA) (16) DIY 4 (N. Am.)
Cash & Carry, Department, DIY, Food
60,503 3.1% 28 (Af., Asia,
4. Metro (Germany) (2) Service, Hypermarket, Specialty,
Eur.)
Superstore
Convenience, Discount, Specialty, 53,791 14.4%
5. Kroger (USA) (3) 1 (N. Am.)
Supercenter, Supermarket, Warehouse
Convenience, Department, Hypermarket, 51,535 12.5%
6. Tesco (UK) (18) 12 (Asia, Eur.)
Supermarket, Superstore
46,781 8.9%
7. Target (USA) (ii) Department, Discount, Supercenter 1 (N. Am.)
Cash & Carry, Convenience, Discount, 21 (N. Am., C.
44,584 10.7%
8. Ahold (Netherlands) (5) Drug, Hypermarket, Specialty, Am., S. Am.,
Supermarket Asia, Eur.)
9 (N. Am., S.
41,693 11.8%
9. Costco (USA) (24) Warehouse Am., Asia,
Eur.)
10. Aldi Einkauf 40,060e 14.4% 12 (N. Am.,
Discount, Supermarket
(Germany) (17) Eur., Pac.)
 Cash & Carry, Discount, DIY, Drug,
38,931e 1.5%
11. Rewe (Germany) (12) Hypermarket, Specialty, Supermarket, 13 (Eur.)
Superstore
Cash & Carry, Convenience, Discount,
12. Intermarche (France) 37,472e 204%
DIY, Food Service, Specialty, 7 (Eur.)
(4)
Supermarket, Superstore
36,372 -2.5%
13. Sears (USA) (6) Department, Mail Order, Specialty 3 (N. Am.)
14. Safeway, Inc. (USA) 35,553 7.7%
Supermarket 3 (N. Am.)
(19)
35,436 17.2%
15. Albertson’s (USA) (9) Convenience, Drug, Supermarket 1 (N. Am.)
16. Schwarz Group 33,435e 22.4%
Discount, Hypermarket, Superstore 17 (Eur.)
(Germany) (36)
32,505 16.3%
17. Walgreens (USA) (31) Drug 1 (N. Am.)
Department, DIY, Hypermarket, 32,497 1.4% 12 (Af., S. Am.,
18. Auchan (France) (21)
Specialty, Supermarket, Superstore Asia, Eur.)
30,838 20.3%
19. Lowe’s (USA) (40) DIY 1 (N. Am.)
20. Ito-Yokado (Japan) Convenience, Department, Food Service, 30,819 4.4% 4 (N. Am.,
(23) Specialty, Supermaket, Superstore Asia)
Cash & Carry, Discount, DIY, Drug,
21. Tengelmann (Germany) 29,091e -2.0% 15 (N. Am.,
Hypermarket, Specialty, Supermarket,
(13) Asia, Eur.)
Superstore
Convenience, Drug, Department,
28,697 6.9% 11 (N. Am.,
22. AEON (Japan) (n.l.) Discount, DIY, Food Service, Specialty,
Asia, Eur.)
Supermarket, Superstore
 Convenience, Hypermarket, 28,630 1.0%
23. J. Sainsbury (UK) (20) 2 (N. Am., Eur.)
Supermarket, Superstore
Cash & Carry, Convenience, Discount,
28,330e -3.1%
24. Edeka (Germany) (11) DIY, Specialty, Supermarket, 5 (Asia, Eur.)
Hypermarket, Superstore
27,396e 5.7%
25. E. Leclerc (France) (22) Convenience, Hypermarket, Supermarket 6 (Eur.)
26,588 11.7%
26. CVS (USA) (32) Drug 1 (N. Am.)
Cash & Carry, Convenience,
19 (N. Am., S.
Department, Discount, Food Service, 26,018 10.6%
27. Casino (France) (33) Am., Asia,
Hypermarket, Specialty, Supermarket,
Eur.)
Warehouse
24,547 19.5%
28. Best Buy (USA) (51) Specialty 2 (N. Am.)
23,253 -7.1%
29. Kmart (USA) (10) Discount, Superstore 1 (N. Am.)
30. Delhaize Group Cash & Carry, Convenience, Drug, 21,306 7.8% 10 (N. Am.,
(Belgium) (34) Specialty Asia, Eur.)
31. Woolworths (Australia) Convenience, Department, Specialty, 19,941 10.6%
2 (Pac.)
(48) Supermarket
17,786 -9.7% 3 (N. Am., S.
32. J.C. Penney (USA) (15) Department, Mail Order
Am.)
33. KarstadtQuelle Department, Food Service, Mail Order, 16,976 -2.3% 23 (N. Am.,
(Germany) (47) Specialty Eur.)
34. AutoNation (USA) 16,867 5.9%
Auto 1 (N. Am.)
(n.l.)
16,848 6.9%
35. Publix (USA) (46) Convenience, Supermarket 1 (N. Am.)
 16,600 5.6%
36. Rite Aid (USA) (44) Drug 1 (N. Am.)
37. Coles Myer (Australia) Convenience, Department, Specialty, 16,045 5.6%
2 (Pac.)
(43) Supermarket
15,854 11.9% 6 (N. Am.,
38. Gap (USA) (57) Specialty
Asia, Eur.)
46 (Af., N.
39. Pinault-Printemps- 15,739e 10.2%
Auto, Department, Mail Order, Specialty Am., S. Am.,
Redoute (France) (52)
Asia, Eur.)
40. Federated Department 15,264 -0.7%
Department, Specialty 1 (N. Am.)
Stores (USA) (29)
Convenience, Hypermarket, 15,129e 3.5%
41. Safeway (UK) (45) 1 (Eur.)
Supermarket, Superstore
Department, Discount, Specialty, 14,562 -10.3% 3 (N. Am.,
42. Daiei (Japan) (25)
Supermarket, Superstore Asia)
14,522 3.5%
43. Kingfisher (UK) (30) DIY 11 (Asia, Eur.)
44. El Corte Ingles (Spain) Convenience, Department, Hypermarket, 13,686 17.1%
2 (Eur.)
(70) Specialty, Supermarket
45. Marks & Spencer (UK) 13,498 0.2% 27 (N. Am.,
Department, Specialty, Supermarket
(38) Asia, Eur.)
Cash & Carry, Convenience,
13,441 8.5%
46. Loblaws (Canada) (63) Hypermarket, Supermarket, Superstore, 1 (N. Am.)
Warehouse
47. May Department Stores 13,343 0.4%
Department, Specialty 1 (N. Am.)
(USA) (41)
13,328 10.9%
48. TJX Cos. (USA) (68) Discount 4 (N. Am., Eur.)
 More than 100
49. McDonald’s (USA) 12,795 0.6% (Af., N. Am., C.
Food Service
(n.l.) Am., S. Am.,
Asia, Eur., Pac.)
12,118 12.5% 32 (N. Am.,
50. IKEA (Sweden) (75) Specialty
Asia, Eur., Pac.)
Discount, DIY, Hypermarket, 11,784e 6.7%
51. Coop Italia (Italy) (64) 2 (Eur.)
Supermarket
31 (Af., N.
52. Toys “R” Us (USA) 11,566 0.7%
Specialty Am., Asia, Eur.,
(49)
Pac.)
53. Otto Versand 11,419 -10.3% 18 (N. Am.,
Cash & Carry, Mail Order, Specialty
(Germany) (26) Asia, Eur.)
11,100e 7.9%
54. Meijer (USA) (60) Superstore 1 (N. Am.)
55. Migros Genossenschaft Convenience, Department, Hypermarket, 10,704 -0.1%
3 (Eur.)
(Switzerland) (50) Specialty, Supermarket, Superstore
10,702e 15.1%
56. Dixons (UK) (98) Specialty 13 (Eur.)
10,700e 11.4%
57. H.E. Butt (USA) (77) Supermarket 2 (N. Am.)
58. Coop Norden (Sweden) Convenience, Discount, DIY, 10,683 ne
3 (Eur.)
(n.l.) Supermarket, Superstore
10,633 -5.5%
59. Winn-Dixie (USA) (37) Supermarket 2 (N. Am.)
10,551 15.7%
60. SuperValu (USA) (89) Discount, Supermarket, Superstore 1 (N. Am.)
10,282 22.8%
61. Kohl’s (USA) (n.l.) Department 1 (N. Am.)
62. Louis Delhaize Cash & Carry, Convenience, Discount, 10,189e 5.1% 8 (S. Am.,
(France) (n.l.) Hypermarket, Specialty, Supermarket Eur.)
Convenience, Department, DIY, Drug, 10,141 1.0%
63. Uny (Japan) (62) 2 (Asia)
Specialty, Supermarket, Superstore
9,745 0.9%
64. Circuit City (USA) (53) Specialty 1 (N. Am.)
9,700e n/a Global (e-
65. Dell (USA) (n.l.) E-commerce
commerce)
Convenience, Department, Drug, DIY,
66. Coop Switzerland 9,454 2.6%
Food Service, Hypermarket, Mail Order, 1 (N. Am.)
(Switzerland) (61)
Specialty, Supermarket
26 (Af., N.
67. Great Universal Stores, 9,447 6.2%
Department, DIY, Specialty Am., Asia, Eur.,
PLC (GUS) (UK) (73)
Pac.)
9,440e 5.8% 10 (N. Am.,
68. Staples (USA) (74) E-commerce, Mail Order, Specialty
Eur.)
69. Limited Brands (USA) 8,934 -0.9%
Specialty 1 (N. Am.)
(55)
70. Millunnium Retailing 8,546 ne
Department 1 (Asia)
Group (Japan) (n.l.)
23 (N. Am., C.
71. Office Depot (USA) 8,397e -1.4%
E-commerce, Mail Order, Specialty Am., Asia,
(58)
Eur.)
72. Takashimaya (Japan) 8,360 -1.2% 6 (N. Am.,
Department, Specialty
(56) Asia, Eur.)
73. Yamada Denki (Japan) 8,330 31.1%
Specialty 1 (Asia)
(n.l.)
74. Systeme U Centrale 8,264e -2.7%
Hypermarket, Supermarket, Superstore 4 (Eur.)
Nationale SA (France) (54)
75. Empire/Sobey’s Convenience, Discount, Drug, 8,234 12.1%
1 (N. Am.)
(Canada) (72) Supermarket, Superstore
76. Wm. Morrison (UK) 8,171 14.3%
Supermarket, Superstore 1 (Eur.)
(n.l.)
Department, DIY, Specialty, 7,876 -3.1%
77. Seiyu (Japan) (n.l.) 4 (Asia)
Supermarket, Superstore
7,742 -5.2%
78. Somerfield (UK) (65) Convenience, Discount, Supermarket 1 (Eur.)
7,649 -0.5% 8 (N. Am.,
79. Boots (UK) (71) Drug
Asia, Eur.)
Convenience, Department, Food Service, 7,633 12.7%
80. Lotte (S. Korea) (n.l.) 2 (Asia)
Hypermarket, Supermarket
7,599 -0.5%
81. Dillard’s (USA) (59) Department 1 (N. Am.)
82. Mercadona (Spain) 7,592 25.2%
Supermarket 1 (Eur.)
(n.l.)
83. Army & Air Force 7,585 1.3%
Specialty, Exchange Services Global
(USA) (79)
84. Yum! Brands (USA) 7,441 -1.1%
Food Service Global
(n.l.)
7,437 5.0%
85. John Lewis (UK) (88) Department, Hypermarket, Supermarket 1 (Eur.)
e
86. United Auto Group 7,400 20.8% 3 (N. Am., S.
Auto
(USA) (n.l.) Am., Eur.)
87. CCA Global (USA) 7,000e 23.9% 5 (N. Am., Eur.,
Specialty
(n.l.) Pac.)
6,943 -3.5% 10 (N. Am.,
88. Mitsukoshi (Japan) (67) Department
Asia, Eur.)
89. Dollar General (USA) 6,872 16.4%
Discount 1 (N. Am.)
(n.l.)
Auto, Department, DIY, Discount, Food
6,812 10.7%
90. Kesko (Finland) (100) Service, Hypermarket, Supermarket, 5 (Eur.)
Specialty
6,805 5.5%
91. Avon (USA) (n.l.) Direct Selling Cosmetics Global
Auto, Convenience, Department,
6,728 10.1%
92. S. Group (Finland) (84) Discount, Food Service, Hypermarket, 3 (Eur.)
Specialty, Supermarket
93. Metcash (South Africa) Cash & Carry, Convenience, Specialty, 6,698e 10.4% 14 (Af., Asia,
(n.l.) Supermarket Pac.)
94. Hutchison
6,631e 31.9%
Whampoa/AS Watson Drug, Specialty, Supermarket 15 (Asia, Eur.)
(Hong Kong SAR) (n.l.)
95. GJ’s Wholesale Club 6,585 13.6%
Warehouse 1 (N. Am.)
(USA) (n.l.)
6,492 5.2%
96. Nordstrom (USA) (90) Department, Specialty 5 (N. Am., Eur.)
97. Schlecker (Germany) 6,453e 6.6%
Drug, DIY, Hypermarket 8 (Eur.)
(96)
98. Galeries Lafayette 6,261 3.7%
Department, Hypermarket 1 (Eur.)
(France) (83)
4,700e -2.3%
99. CompUSA (USA) (82) Specialty 1 (N. Am.)
100. KESA Electricals 6,233 ne
Specialty 6 (Eur.)
(UK) (n.l.)
Notes:
Source: “2005 Global Powers of Retailing,” Stores, January 2005, available on http://www.stores.org .
(i) Continents are abbreviated as follows: Af. = Africa; N. Am. = North America; C. Am. = Central America; S. Am. = South America; Asia =
Asia; Eur. = Europe; Pac. = Pacific (Australia, New Zealand).
(ii) Target was part of Dayton-Hudson Corporation in 1998. Dayton-Hudson itself was ranked 14th in 1998 sales, and if Target’s 1998 sales
are taken alone, it would have ranked 25th in sales in 1998 among global retailers.
“n.l.” = not listed in top 100 retailers in 1998.
 TABLE 11-2: PROFIT PERCENTAGES AT SAKS FIFTH AVENUE‘S
FLAGSHIP STORE (1996)

FLOOR DEPARTMENT PERCENT OF TOTAL STORE PROFIT

GENERATED BY THIS DEPARTMENT
MAIN FLOOR (39% of total profit) Cosmetics 18%
Accessories (belts, handbags, sunglasses) 10%
Costume jewelry 3%
Fine jewelry 4%
Hosiery 0.5%
Men's shirts, ties, accessories 3%
Penhaligon's (British shop) 0.5%
SECOND FLOOR (12% of total profit) Designer sportswear 8%
Men's sportswear 4%
THIRD FLOOR (6% of total profit) High-end designer collections 4.5%
Furs 1%
Bridal boutique 0.5%
FOURTH FLOOR (9% of total profit) Career wear 8%
Designer shoes 1%
FIFTH FLOOR (7% of total profit) Women's contemporary designers 6%
Shoes 1%
SIXTH FLOOR (10% of total profit) Men's suits 8%
Men's designer clothing 2%
SEVENTH FLOOR (9% of total profit) Women's coats 3%
Women's petite sizes 4%
Women's dresses 2%
EIGHTH FLOOR (5.5% of total profit) Lingerie 3%
Children's clothes 2%
Restaurant & candy shop 0.5%
NINTH FLOOR (2.5% of total profit) Salon Z (large sizes) 2%
Beauty salon 0.5%

Source: adapted from Jennifer Steinhauer (1997), "The Money Department," The New York Times, Magazine Section 6, April 6, pp. 62-64.
 TABLE 11-3: EXAMPLE OF ASSORTMENT AVAILABLE AT
BOOK BARON (www.bookbaron.com)

Author: Sue Grafton, a popular mystery writer; book titles each start with a letter of the alphabet, beginning with “A is for Alibi,”
published in 1982. “R is for Ricochet” was published in 2004.
Some of the Sue Grafton books available at www.bookbaron.com on July 5, 2005:

Title Pub. date Price Condition

E is for Evidence 1988 $125.00 1st edition; near fine in near fine dust
jacket (DJ). Light browning to edges of
DJ.
H is for 1991 $50.00 1st edition; near fine in DJ. Signed by
Homicide author, review copy.
F is for Fugitive 1989 $35.00 1st edition; fine in near fine DJ; slight
yellowing along edge of flaps.
I is for Innocent 1992 $35.00 1st edition; near fine in DJ. Inscribed by
the author. Light shelfwear, spine lean.
M is for Malice 1996 $30.00 1st edition; fine in DJ. Signed.
N is for Noose 1998 $30.00 1st edition; fine in DJ. Signed.
P is for Peril 2001 $30.00 1st edition; fine in DJ. Signed by author.
I is for Innocent 1992 $25.00 1st edition; fine in DJ.
M is for Malice 1996 $15.00 1st edition; near fine in DJ. Light
shelfwear.
 TABLE 11-4: SALES, GENERAL & ADMINISTRATIVE (SG&A) COSTS
AS A PERCENTAGE OF NET SALES FOR SELECTED RETAILERS
Net Sales SG&A Expenses SG&A as % of
($million) ($million) Net Sales
General
Merchandise,
Hypermarkets,
Category Killers:
Wal-Mart 285,222 51,105 17.9%
Home Depot 73,094 16,504 22.6%
Costco 47,146 4,598 9.7%
Target 45,682 9,797 21.4%
Lowe’s 36,464 7,562 20.7%
Office Supplies,
Drugs:
Walgreen 37,508 8,072 21.5%
Best Buy 27,433 5,053 18.4%
Office Depot 13,565 3,703 27.3%
Circuit City 10,018 2,308 23.0%
Department
Stores:
J.C. Penney 18,424 5,827 31.6%
May 14,441 3,021 20.9%
Kohl’s 11,701 2,540 21.7%
Dillard’s 7,529 2,099 27.9%
Nordstrom 7,131 2,020 28.3%
Specialty Stores:
Gap 16,267 4,296 26.4%
Limited 9,408 1,872 19.9%
Ann Taylor 1,854 843 45.5%
Chico’s 1,067 398 37.3%
Source: annual reports for 2004/2005 for each company. Depending on the company’s fiscal year end, 2004 or 2005 figures are used. The actual fiscal years overlap in all cases.
 TABLE 11-5: A TAXONOMY OF RETAILER TYPES

RETAILER MAIN FOCUS BULK- SPATIAL WAITING & VARIETY ASSORT-

TYPE ON MARGIN BREAKING CONVEN- DELIVERY (BREADTH) MENT
OR IENCE TIME (DEPTH)
TURNOVER?
Department store Margin Yes Moderate Low wait time Broad Moderate/
(e.g., May Co.) Shallow
Specialty store Margin Yes Moderate Low wait time Narrow Deep
(e.g., Gap)
Mail Order/ Margin Yes Extremely High Moderate/ High Narrow Moderate
Catalog (e.g., wait time
Lands' End)
Convenience Both Yes Very High Low wait time Broad Shallow
store (e.g., 7-
Eleven)
Category killer Turnover Yes Moderate Low wait time Narrow Deep
(e.g., Best Buy)
Mass Turnover Yes Low Moderate wait Broad Shallow
Merchandiser time (may be out
(e.g., Wal-Mart) of stock)
Hypermarket Turnover Yes Low Moderate wait Broad Moderate
(e.g., Carrefour) time
Warehouse Club Turnover No Low Moderate/high Broad Shallow
(e.g., Sam's wait time (may
Club) be out of stock)
FIGURE 11-1: U.S. E-COMMERCE SALES, IN $ MILLION AND AS A PERCENTAGE
OF TOTAL U.S. RETAIL SALES

Source: U.S. Census Bureau, Released May 20, 2005, available at http://www.census.gov/mrts/www.ecomm.html .

U.S. E-commerce sales

25,000 2.5

20,000 2

As % of total U.S. sales

15,000 1.5
$Million

Percent
10,000 1
E-commerce sales ($million)

5,000 0.5

0 0
4Q 99

1Q00

2Q00

3Q00

4Q 00

1Q01

2Q01

3Q 01

4Q01

1Q02

2Q 02

3Q 02

4Q02

1Q03

2Q 03

3Q03

4Q03

1Q04

2Q 04

3Q04

4Q 04

1Q05
Quarter/Year

E-commerce retail sales ($m) E-commerce as % of total US retail sales

 FIGURE 11-2: PERCENTAGE CHANGE FROM ONE YEAR AGO,
IN TOTAL U.S. RETAIL SALES AND U.S. E-COMMERCE SALES

Source: U.S. Census Bureau, Released May 20, 2005, available at http://www.census.gov/mrts/www.ecomm.html

% Change from 1 Year Ago: Total U.S. Retail Sales and E-Commerce Sales

80

70

60

50
Percent

40

30

20

10

0
4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q
9

00

00

01

02

03

05
01

02

03

03

04
9

4
Quarter/Year

% Change from 1 Year Ago: Total U.S. Retail Sales $ Change from 1 Year Ago: E-Commerce Sales
FIGURE 11-3: PERCENTAGE DISTRIBUTION OF E-COMMERCE SALES BY
MERCHANDISE LINE, 2003
(for U.S. Electronic Shopping and Mail-Order Houses)
% Distribution of E-Commerce Sales by Merchandise Line, 2003, for U.S. Electronic Shopping
and Mail-Order Houses (NAICS 454110), Excluding Nonmerchandise Receipts
Total E-Commerce Sales: $37.75 billion; Total Sales: $125.385 billion

Books/magazines
Other merchandise 6%
13%
Clothing
15%
Toys/hobbies/games
4%

Sporting goods
3%

Office equipment/supplies
9%

Computer hardware
18%
Music/videos
5%

Furniture Computer software

9% 3%
Food/beer/wine Drugs, health/beauty aids
2% 5%
Electronics/appliances
8%
 FIGURE 11-4: E-COMMERCE AS A PERCENT OF SALES, 2003
(for U.S. Electronic Shopping and Mail-Order Houses)

E-Commerce as % of Sales for U.S. Electronic Shopping and Mail-Order Houses (NAICS
454110), 2003

Other merchandise

Toys/hobbies/games

Sporting goods

Office equipment/supplies

Music/videos

Furniture

Food/beer/wine

Electronics/appliances

Drugs, health/beauty aids

Computer software

Computer hardware

Clothing

Books/magazines

0.00 10.00 20.00 30.00 40.00 50.00 60.00

Percent
 TABLE 11-6: DIRECT SALES BY COUNTRY
Country Year Retail Sales Number of Average Sales Per Capital
(in U.S. $) Salespeople Per Income
Salesperson (1998)

1. United States 2003 $29.5 billion 13,300,000 $2,218 $441,400

2. Japan 2003 $27.0 billion 2,000,000 $13,500 $37,180

3. Brazil 2004 $3.92 billion 1,538,945 $2,547 $3,090

4. United Kingdom 2004 $3.03 billion 520,000 $5,827 $33,940

5. Italy 2004 $2.98 billion 272,000 $10,956 $26,120

6. Mexico 2003 $2.89 billion 1,850,000 $1,562 $6,770

7. Germany 2004 $2.88 billion 206,346 $13,957 $30,120

8. Korea 2003 $2.73 billion 3,208,000 $851 $13,980

9. France 2004 $1.72 billion 170,000 $10,117 $30,090

10. Taiwan 2003 $1.56 billion 3,818,000 $409 $25,300*

11. Malaysia 2003 $1.26 billion 4,000,000 $315 $4,650

12. Australia 2004 $1.07 billion 690,000 $1,550 $26,900

13. Canada 2004 $1 billion 898,120 $1,113 $28,390

13. Russia 2004 $1 billion 2,305,318 $434 $3,410

15. Thailand 2004 $880 million 4,100,000 $215 $2,540

16. Venezuela 2000 $681 million 502,000 $1,357 $4,020

17. Argentina 2004 $662 million 683,214 $969 $3,720

18. Poland 2004 $644 million 585,200 $1,100 $6,090

19. Colombia 2004 $583 million 650,000 $897 $2,000

20. Turkey 2004 $539 million 571,799 $943 $3,750

21. India 2004 $533 million 1,300,000 $410 $620

22. Indonesia 2002 $522 million 4,765,353 $110 $1,140

23. Spain 2002 $497 million 132,000 $3,765 $21,210

24. Switzerland 2003 $355 million 6,885 $51,561 $48,230

25. Chile 2004 $338 million 223,000 $1,516 $4,910

 FIGURE 11-5: A SAMPLE MULTI-LEVEL DIRECT SELLING
ORGANIZATION: STRUCTURE AND COMPENSATION
Source: Anne T. Coughlan and Kent Grayson (1998), "Network marketing organizations: Compensation plans, retail network
growth, and profitability," International Journal of Research in Marketing, Vol. 15, p. 403.

COMMISSION SCHEDULE:
Volume Commission Rate
$0-$99 3%
$100-$275 5%
> $275 7%

Janet
(personal
volume=$200)

Susan Catherine Kent

(personal (personal (personal
volume=$100) volume=$100) volume=$100)

Anne Lysa Paulette

(personal (personal (personal
volume=$50) volume=$50) volume=$50)