W.W. Grainger, Inc. or American Airlines Group Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Giants

In the competitive landscape of American business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. W.W. Grainger, Inc. and American Airlines Group Inc. offer a fascinating study in contrasts. Over the past decade, Grainger has consistently maintained higher SG&A expenses, averaging around $3.2 billion annually. However, this reflects their expansive operations and robust supply chain management. In contrast, American Airlines, with an average SG&A of $1.4 billion, has shown more volatility, particularly in 2020 when expenses plummeted by 64% due to the pandemic's impact on travel. By 2023, American Airlines' SG&A rebounded to $1.8 billion, a 75% increase from 2020, indicating a recovery in operations. Meanwhile, Grainger's expenses rose steadily, reaching $3.9 billion in 2023, a 32% increase from 2014. This data underscores the strategic differences in cost management between a logistics powerhouse and an airline giant.