Expenses in Operating Retail Grocery Stores

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Expenses in Operating Retail Grocery Stores
Harvard University Bureau of Business Research
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8 %, with a marked tendency to concentrate around 7 %. In numerous stores Total Selling Expense is reduced to 5. 5 %, or lower.
Wages of Delivery Force is another large item in the expense of operat- ing a retail grocery store. The lowest figure for Wages of Delivery Force is 0. 6 % and the highest is 3. 5 %. The common figure is plainly 1. 5 %, with 1 % as an attainable standard. This lower percentage, like that for Salaries and Wages of Salesforce, is not realized because of low wages, but th
...rough improved organization of delivery service.
Other Delivery Expense varies from 0. 3% to 3. 4%; the common figure is 1. 5 % and 1 % appears to be attainable.
Total Delivery Expense ranges from 1. 1 % to 5. 9 %, and the typical figure is 3 %. As a rule, a store which spends much over 3 % of its net sales for Total Delivery Expense is unprofitable. 2. 5 % is a figure fre- quently reached and a considerable number of stores spend only 2 % for delivery.
10 Management and Office Salaries is ordinarily about 1.


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