I've gotten a lot of little tidbits from my boss that are interesting, but I just learned something that blows all that out of the water and reframes everything.
The store I work in, a convenience store/pharmacy of medium size in a spot somewhere between the suburbs and the city, pays $50k a month in rent.
Think about how much more you're charged for products than they cost to produce. Set aside the actual Capitalists in the process, they at least facilitate production. Think about how much extra money you've been spending just so that retailers can meet the demands of some company that has a piece of paper that says they own the land.
Apparently in big cities, the rent can get over $200k a month.
$600k a year in rent; what do you suppose their gross annual revenue is?
According to my boss, the store makes 3 cents on every dollar in profit.
I'll have to see if I can get him to show me the binder again.
From what I understand that is generally accurate of grocery stores
We're a block away from a proper supermarket. I'd love to see what their numbers look like.
I worked in a small boujie grocery store after lock downs began lifting in a mid sized city and we made around the low end of $100k a day
Quick googling shows a large Walmart can make up to $250k a day
Thats honestly impressive. That implies 2500+ customers a day
Half your sales are gonna be from whales. For 5 people buying 100 bucks of like, bananas and lentils, there's someone buying 500 bucks of processed foods, protein powder, and organic eggs.
If you work in sales, like Nordstrom, every like 10th person will pretty much buy whatever you point them at no matter how shifty and expensive it is.
So it's not 2500 customers. It's 1250 customers, a few of whom literally can't stop themselves.
This is what it felt like ringing up at my old grocery store. Many customers spent around $70-200 and a fair amount would have these huge haul $300/$400/$500+ purchases
We sold nice alcohol and that ran up bills very quickly
My old store would peak at $300k+ in the weekends and shopping days leading up to holidays. Average customer hauls being over $100.
$250k for average is wild
At the height of covid the store I worked in made 1 million every two days, I was sitting nearby and managed to hear the store manager whisper that to my department manager
She also told them it was the best they've done since 9/11
So even at a conservative estimate of earnings, the store is paying less than 3% of its revenue in rent.
Wait no sorry, I'm not op, I was just providing my own example, the company in my case owned the building and the plot of land, but utilities and taxes probably didn't exceed 5%
I know, I was saying that based on a factor of 4 from "200k a month".