Margin refers to what percentage of a retail price is profit, whereas markup refers to what percentage a wholesale cost gets marked up to create the selling price. But do grocery stores use markup or margin? Grocery stores use both markup and margin, most commonly using markup to determine the retail price of products and … Read more
If you’ve ever considered owning a grocery store, work in one, or are just curious, you may have wondered how do grocery stores make money? As a general rule, grocery stores operate on a profit margin as low as 1-3%. So they make money by selling large quantities. They also try to minimize shrink (theft … Read more
Grocery stores are everywhere: from the small, family-owned market on the corner to the grocery store giants with locations all over the world. It’s clear that the grocery store business can be profitable and sustainable, but what is the profit margin for grocery stores? Conventional grocery stores have a profit margin of about 2.2%, making … Read more
As a store manager for years, I someday dreamed of opening my own store. But I always wondered, is owning a grocery store profitable? Conventional grocery stores make 1-2% bottom-line profit, but stores like Whole Foods Market may generate 5-12% profit. However, for small independent grocery stores, 1 to 4% is more typical. There are … Read more
Trying to figure out how much to price a product and how much profit you can make when you sell it is tricky. But after 20+ years in retail grocery, here’s what I’ve learned about how to calculate markup and margin for retail: Margin is the percentage of your sales price that is profit. Markup … Read more