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It has also threatened to lay waste to South Korea and Japan. U.S. Defense Secretary Jim Mattis said on Friday North Korea's recent statements were provocative but had proven to be hollow in the past and should not be trusted. "We've all come to hear their words repeatedly, their word has not proven honest," Mattis told a news conference in Tel Aviv, before the latest threat to the aircraft carrier. Japan's show of naval force reflects growing concern that North Korea could strike it with nuclear or chemical warheads. Some Japanese ruling party lawmakers are urging Prime Minister Shinzo Abe to acquire strike weapons that could hit North Korean missile forces before any imminent attack. Japan's navy, which is mostly a destroyer fleet, is the second largest in Asia after China's. The two Japanese warships, the Samidare and Ashigara, left western Japan on Friday to join the Carl Vinson and will "practice a variety of tactics" with the U.S. strike group, the Japan Maritime Self Defence Force said in a statement.
But when it comes to profitability, an online sale is not an equivalent replacement for that same item purchased in store. Retail consultancy AlixPartners built models for CNBC to illustrate an approximation of the financial differences an apparel retailer might see when selling $100 worth of goods in-store and the same $100 worth of goods online. Buy in-store The AlixPartners models begin with a typical $100 clothing purchase made by a shopper in a physical store, with a typical cost of goods sold or what the retailer paid to have that clothing manufactured of about $40. Then, there is the cost of running stores, but because those costs are considered "legacy" costs and have been in place for many years there's a maturity and scale to them, making them more efficient, and less "expensive" relatively, than the cost of running online operations. In a physical retail store, a shopper, effectively, picks out her own merchandise, and gets it home herself, so there's no additional "picking, packing, shipping" cost paid by a retailer with this model. Thus the $100 outfit has associated operating costs, like rent, overhead and labor of about $28. So a $100 purchase, minus the $40 cost of the goods, minus the $28 operating costs associated with that unit of clothing, leaves a profit margin of 32 percent. Buy online, ship from distribution center Now, consider a shopper instead goes to a retailer's website to search for and buy that same $100 outfit, with the same $40 cost. The model assumes that the $100 purchase comes with free shipping, which is fairly typical for a purchase of that value. There are costs associated with processing an online order.
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