This case compares financial performance between Shinsegae and Hyundai Department Store in the retail industry. Two companies are known to plan and implement differential business strategies. Shinsegae adopts a cost-leading strategy while Hyundai Department Store follows a differentiation strategy. The cost-leading strategy focuses on high asset turnover ratio and low profit margin and is effective for low-priced merchandises. On the other hand, the differentiation strategy emphasizes high profit margin and low asset turnover ratio. Such different business strategies are manifested by two companies’ financial indicators. Specifically, return on common equity of Shinsegae consists of high asset turnover ratio and low profit margin. But return on common equity of Hyundai Department Store is composed of high profit margin and low asset turnover ratio. Further, operating cycle of Shinsegae is short relative to that of Hyundai Department Store. This result suggests that each company implements its business strategy effectively.