Skip to the lesson
Back to the home page and map, from TryOwning · Small manufacturer · Lesson 3
Part 1 of 3Part 1 of 3, 0 done

Small manufacturer · 14 min

Selling to a big retailer

A big chain wants your product on its shelves. The volume is huge, but so are the fees, the fines and the wait to be paid. Is it worth it?

Ticket 01 · The guess

How much of the shelf price does the store keep?

Home Depot sells tools, lumber and hardware made by thousands of suppliers. In fiscal 2025, what share of each dollar shoppers paid did it keep after paying for the goods it sold? That's its gross margin.

10%
0%60%
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (5)

Sources

  • The Home Depot, Inc. Form 10-K for the fiscal year ended February 1, 2026 (fiscal 2025) · The Home Depot, Inc. (filed with the U.S. SEC), 2025
  • The Kroger Co. Form 10-K for the fiscal year ended January 31, 2026 · The Kroger Co. (filed with the U.S. SEC), 2025
  • Lowe's Companies, Inc. Form 10-K for the fiscal year ended January 30, 2026 (fiscal 2025) · Lowe's Companies, Inc. (filed with the U.S. SEC), 2025
  • Walmart Inc. Form 10-K for the fiscal year ended January 31, 2026 · Walmart Inc. (filed with the U.S. SEC), 2026
  • Costco Wholesale Corporation Form 10-K for the fiscal year ended August 30, 2026 · Costco Wholesale Corporation (filed with the U.S. SEC), 2026

Every number

  • 33.3%sec.gov ·2025 · Home Depot's gross profit as a percent of net sales, fiscal 2025 (net sales minus cost of sales). Vendor allowances, mostly volume rebates, are counted as lowering its cost of sales.
  • 22.9%sec.gov ·2025 · Kroger's gross margin rate as a percentage of sales, 2025. Kroger's gross margin takes off more than the goods: its merchandise costs include advertising, warehousing and transportation, and it also subtracts some rent and depreciation. Vendor allowances lower its merchandise costs.
  • 33.5%sec.gov ·2025 · Worked out from Lowe's 10-K: net sales minus cost of sales, divided by net sales, fiscal 2025. Vendor funds are counted as lowering the cost of its inventory.
  • 24.2%sec.gov ·2026 · Walmart's gross profit rate, whole company, fiscal 2026 (year ended January 2026). Payments from suppliers are counted as lowering its cost of sales.
  • 11.09%sec.gov ·2026 · Costco's gross margin as a share of net sales, fiscal 2026 (year ended August 2026).
  1. Lessons›
  2. Industries›
  3. Small manufacturer
  • ·Before this: Cash for the first big order
  • ·Next: Quality, safety rules and recalls
  • ·Free guide: How small manufacturers make money
Skip to the lesson
Back to the home page and map, from TryOwning · Small manufacturer · Lesson 3
Part 1 of 3Part 1 of 3, 0 done

Small manufacturer · 14 min

Selling to a big retailer

A big chain wants your product on its shelves. The volume is huge, but so are the fees, the fines and the wait to be paid. Is it worth it?

Ticket 01 · The guess

How much of the shelf price does the store keep?

Home Depot sells tools, lumber and hardware made by thousands of suppliers. In fiscal 2025, what share of each dollar shoppers paid did it keep after paying for the goods it sold? That's its gross margin.

10%
0%60%
Words to know

Spot something wrong?

Tell us what looks off. No name or email needed.

What kind of problem?

0 / 1000

We'll also send this page, the lesson, ticket 1, so we can find it. Nothing else. Privacy

·
Sources and every number (5)

Sources

  • The Home Depot, Inc. Form 10-K for the fiscal year ended February 1, 2026 (fiscal 2025) · The Home Depot, Inc. (filed with the U.S. SEC), 2025
  • The Kroger Co. Form 10-K for the fiscal year ended January 31, 2026 · The Kroger Co. (filed with the U.S. SEC), 2025
  • Lowe's Companies, Inc. Form 10-K for the fiscal year ended January 30, 2026 (fiscal 2025) · Lowe's Companies, Inc. (filed with the U.S. SEC), 2025
  • Walmart Inc. Form 10-K for the fiscal year ended January 31, 2026 · Walmart Inc. (filed with the U.S. SEC), 2026
  • Costco Wholesale Corporation Form 10-K for the fiscal year ended August 30, 2026 · Costco Wholesale Corporation (filed with the U.S. SEC), 2026

Every number

  • 33.3%sec.gov ·2025 · Home Depot's gross profit as a percent of net sales, fiscal 2025 (net sales minus cost of sales). Vendor allowances, mostly volume rebates, are counted as lowering its cost of sales.
  • 22.9%sec.gov ·2025 · Kroger's gross margin rate as a percentage of sales, 2025. Kroger's gross margin takes off more than the goods: its merchandise costs include advertising, warehousing and transportation, and it also subtracts some rent and depreciation. Vendor allowances lower its merchandise costs.
  • 33.5%sec.gov ·2025 · Worked out from Lowe's 10-K: net sales minus cost of sales, divided by net sales, fiscal 2025. Vendor funds are counted as lowering the cost of its inventory.
  • 24.2%sec.gov ·2026 · Walmart's gross profit rate, whole company, fiscal 2026 (year ended January 2026). Payments from suppliers are counted as lowering its cost of sales.
  • 11.09%sec.gov ·2026 · Costco's gross margin as a share of net sales, fiscal 2026 (year ended August 2026).
  1. Lessons›
  2. Industries›
  3. Small manufacturer
  • ·Before this: Cash for the first big order
  • ·Next: Quality, safety rules and recalls
  • ·Free guide: How small manufacturers make money