roughly 20%
According to statistics from the U.S. Department of Labor, labor costs are one of the largest expenses any company has to absorb. In the retail industry, they average roughly 20% of total revenue—even more than the cost of inventory on hand in most cases!

What is the typical labor cost?

According to the Bureau of Labor Statistics, the average cost of employee compensation for civilian workers is $38.20 per hour.

What percent profit do grocery stores make?

Grocery stores operate on slim profit margins. In 2017, the average net profit for grocery stores was 2.2 percent. That means for every dollar in sales, grocery stores made 2.2 cents in profit. (Profit margins for specialty grocers, like natural food stores, can be slightly higher.)

What percentage of sales should rent be?

How to Calculate Sales Per Square Foot. Commercial tenants should be able to spend 5% to 10% of their gross sales per foot on rent. Your gross sales divided by the location’s square footage will give you sales per square foot.

How much does the retail grocery industry make?

Packaged food sales within the retail grocery industry reached $372.77 billion in 2017 in the U.S., with global figures forecasting $2.64 trillion in packaged food sales. (Statista) #11. The average retail grocery location in the United States hires 72 FTEs.

How big is the grocery industry in the United States?

In 2017, the retail grocery industry saw $682.71 billion in total sales. (Progressive Grocer Magazine) #3. There are more than 38,000 grocery stores and supermarkets in the United States which experience more than $2 million in annual sales each year. (Progressive Grocer Magazine)

When did labor productivity fall in grocery stores?

Over the 1987–2000 period, labor productivity fell in 10 of the 13 years. Since 2000 through 2018, productivity grew in all but 4 years yet remained well below that of retail trade overall. In this Beyond the Numbers article, we review the timeline for the development and implementation of new retail technologies in grocery stores.

What makes up 20% of grocery store sales?

A small store format that traditionally sold staples and knickknacks, but now sales of food and consumable items at aggressive price points that account for at least 20%, and up to 66%, of their volume, e.g., Dollar General, Dollar Tree, and Family Dollar.