Wal-Marts Gross Margin is 24%

Reader comment on: Obama's 'Decent' Wages Escalate Prices

Submitted by Lyle (United States), Aug 14, 2013 00:00

This is defined as the difference between the cost of goods sold and the sales price divided by the sales price. http://ycharts.com/companies/WMT/gross_profit_margin. Since the gross margin includes all labor at the store. (Not labor up the supply chain however). If just Wal-Mart raised wages at most it could raise prices by a factor of 1.5 (raising the gross margin to 50%). So this suggests that the comparison is with a store that has a higher gross margin, or its supply chain pays better. Here is a definition of cost of goods sold (all be it from Austrailia). Note that cost of goods sold includes sales costs: http://www.retailformulas.com.au/Cost_of_Goods_Sold

Typically that would be in the sales general and administrative cost line.

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