Mediocrity versus Change in Drug-Store Operating Ratios

Abstract

Horace Secrist showed many years ago that various retail stores whose expenses and gross margins were either far above or far below average in a particular year tended to move closer to the average of the group of stores in succeeding years. The present study uncovers this same tendency in drug-store data for the years 1948–1952. An attempt is also made to look into the causes behind this phenomenon.