Retail :: How much is the money!
A lot of common people think that Retail brands make a killing in terms of profits ,however the truth is that retail is a very very thin margin business , lets c how ! A good brand typically has its set of retail stores which are its advertising medium , one might say , a store for a common man looks inviting , neatly laid , and sometimes gives good deals too , but lets try breaking the store into some numbers ! a typical P& L of a store starts with the Sales /turnover Minus the Cost of good sold ( basically the cost of producing the goods ) typically varies 28 to 30 % of sales for mid segment brands and lower for premium brands as the MRP itself would be higher . Sales - COGS ,would give the Gross margin of the store , which is around 70 % ( 100- 30 ) of the store from the Gross Margin minus the COR, ie the Cost of retail . The COR of retail includes the the rental as the major component , operating expenses of the store , like salaries , electricity , pilferage ,repairs and main