You probably study this stuff and already know it, but here is the most recent Best Buy 10Q Statement (click here).
On page four, you'll see that Best Buy sold $21.0 billion dollars of merchandise in the first six months of their fiscal year. And you'll instinctively (and correctly) think "that's ... a ... lot".
However, gross margin dollars aren't all that and a bag of chips.
- $21.0 billion in sales.
- $4.6 billion in gross margin dollars.
- 21.9% gross margin percentage.
- Selling, General, Administrative Expense (which includes marketing and stores and the website, and pick/pack/ship and salaries all that good stuff) was $3.8 billion.
- Best Buy, because of the business model they chose, cannot afford to spend a ton of money on marketing because there won't be any earnings before taxes if they spend marketing dollars unprofitably.