RETAIL MARKETING OF MEATS 
65 
curate in the gross margin, or difference between cost of merchandise 
and sales. They accord in general so nearly in gross margin with 
the figures obtained by actual examination of accounting records 
in the present survey that they lend support in the broader basis 
furnished, particularly in the data from the large number of small 
concerns. 
In the New York City survey the gross margin was found to 
be larger in the delivery than in the carry stores by approximately 
2 per cent of sales, thereby closely approximating the figures of the 
present survey. There was, moreover, a steady gradation between 
the groups segregated by volume of sales, the gross margin on the 
basis of sales in the larger concerns being approximately 2 or 3 
per cent smaller than in the smaller concerns, according rather 
closely with the result of the present survey. (See Table 35 and 
compare Table 28.) 
Table 35. — Gross margin in retail meat trade in Neiv York City, 1917 
Carry stores 
Delivery stores 
Group by annual sales 
Number 
of stores 
Gross 
margin 
Number 
of stores 
Gross 
margin 
Not over $25 4 000 
45 
27 
9 
Per cent 
18.38 
17.35 
16.07 
32 
62 
26 
UO 
Per cent 
19.51 
$25,001 to $50,000 
19.50 
$50,001 to $100,000 
18.82 
$100,001 to $200,000 
17.02 
Over $200,000 i 
1 
12.54 
1 It is probable that the carry store with sales over $200,000 had a large percentage of hotel and restaurant 
trade and that among the 10 delivery stores with sales between $100,001 and $200,000 there were some of the 
same type. 
EXPENSES ANI> PROFITS OF CHAIN STORES 
Gross margin. — The average gross margin between cost at whole- 
sale and sales at retail of the 15 chain-store systems from which 
data were obtained was 18.43 per cent of sales, somewhat less than 
the weighted average for the individual meat markets. However, 
the average volume of sales per store in the chain systems was 
much larger than the weighted average of the individual stores, 
which would enable them to sell on a narrower margin because of 
lower operating expenses. On the other hand, some of them carried 
both meats and groceries, under which conditions meats are usually 
sold on a wider margin, as will be discussed later. When comparison 
is made between chain stores and individual markets of approxi- 
mately the same average size, confining their trade to meats and 
giving the same class of service, it is found that the gross margin 
is somewhat higher in the chain stores than in the individual 
markets. (See Tables 26 and 28.) 
When the stores in each chain system are grouped according to 
volume of annual sales the average gross margin by groups varies 
but little. In so far as considerable differences occur within the 
single chains, the higher gross margin is more frequently in the 
groups of stores with larger volume of sales than in those with 
smaller volume, although operating expenses are regularly higher 
