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They often have operating margins of 1-3%. Gross margins (what people usually mean when they say 'margin') are usually over 5% What? Operating costs are a core
by lr4444lr 9y ago
They often have operating margins of 1-3%. Gross margins (what people usually mean when they say 'margin') are usually over 5%
What? Operating costs are a core part of running a business. In what industry are things like salaries, marketing, and admin costs actually ignored? The inventory in a supermarket is mostly highly perishable - fast inventory turnover is a necessity of survival, not an optional business strategy.
- rahimnathwani 9y agoPlease read my comment in context. I was responding to a comment which started 'What's not stated is that "profitable" is still incredibly low' and then stated as evidence that margins are 1-3% My main point is that these 'low' operating margins are not evidence of low profitability (due to negative working capital and fast inventory turnover).