68 
BULLETIN 1317, U. S. DEPARTMENT OF AGRICULTURE 
charge in the grocery trade is clearly due to the large stock of mer- 
chandise carried, averaging approximately 12 per cent of annual 
purchases or 10 per cent of annual sales, whereas in the fresh-meat 
trade the stock of merchandise carried is more nearly 2 per cent of 
the annual turnover. In the grocery trade, refrigeration is of so 
little consequence as not to receive separate attention, but it is of 
appreciable amount in the meat trade. 
Total salaries and wages in the grocery concerns, substantially 
all of which furnished delivery service, were approximately 8.3 
per cent of sales as compared with 10,76 per cent in the retail 
meat stores furnishing delivery service. Delivery expense was re- 
ported as lower than in the retail meat trade, although the percent- 
age of merchandise delivered was somewhat higher. An allowance 
of a salary was made to the owner-manager as determined by him- 
self and entered in his records. With this wage allowance, the net 
profit in the grocery trade was 2 per cent of sales, approximately the 
same as in the retail meat trade. The gross margin of the concerns 
reporting in the grocery trade was 17 per cent of sales, as compared 
with 19.63 per cent in delivery stores in the meat trade. Total oper- 
ating expense was 1-1.6 per cent in the former and 17.36 per cent in 
the latter. 
In the combination stores there is a marked variation from the 
meat trade in the same items of expense as in the grocery trade, 
although this variation is regularly less. 
Table 36. — Operating expenses and profits in straight meat markets combina- 
tion stores, and grocery stores, all types furnishing delivery service, 1919 
Straight meat markets 
Combination stores 
Annual 
Annual 
Annual 
Annual 
Annual 
Annual 
Annual 
sales 
sales 
sales 
sales 
sales 
sales 
Gro- 
Item 
sales 
be- 
be- 
be- 
Annual 
be- 
be- 
be- 
Annual 
cery 
not 
tween 
tween 
tween 
sales 
tween 
tween 
tween 
sales 
stores 
over 
$25, 001 
$50,001 
$100, 001 
over 
$25,001 
$50,001 
$100, 001 
over 
(175 
$25,000, 
and 
and 
and 
$200,000, 
and 
and 
and 
$200,000, 
stores) 
13 
$50,000, 
$100,000, 
$200,000, 
12 
$50, 000, 
$100,000, 
$200,000, 
16 
stores 
40 
43 
25 
stores 
12 
13 
14 
stores 
stores 
stores 
stores 
stores 
stores 
stores 
Per cent 
Per cent 
Per cent 
Per cent 
Per cent 
Per cent 
Per cent 
Per cent 
Per cent 
Per cent 
Net sales ... .. 
100.00 
78.56 
100.00 
79.91 
100. 00 
81.09 
100.00 
82.03 
100. 00 
82.70 
100. 00 
80.90 
100. 00 
81.29 
100. 00 
83.32 
100.00 
83.48 
100.00 
Cost of merchandise 
Gross margin 
21.44 
20.09 
18.91 
17.97 
17.30 
19.10 
18.71 
16.68 
16.52 
17.0 
2.28 
19.16 
1.95 
18.14 
2.39 
16.52 
2.54 
15.43 
3.06 
14.24 
1.31 
17.79 
.82 
17.89 
.74 
15.94 
.85 
15.67 
2.0 
Total expense..- . 
14.6 
Salaries and wages. - 
11.33 
11.67 
10.53 
9.07 
8.08 
10.63 
11.68 
9.43 
8.97 
8.3 
.86 
1.05 
.76 
.88 
.65 
.58 
.87 
.58 
.95 
.30 
.69 
.65 
.58 
.42 
.64 
.35 
.78 
.33 
.6 
Refrigeration 
Heat, light, and 
.27 
1.69 
.73 
.76 
.29 
1.19 
.58 
.42 
.25 
1.16 
.49 
.31 
.28 
1.25 
.40 
.24 
.30 
.89 
.35 
.24 
.28 
1.16 
.85 
.37 
.26 
1.12 
.70 
.19 
.27 
1.17 
.82 
.22 
.37 
.79 
.59 
.20 
.23 
Rent 
1.1 
1.0 
Depreciation 
.27 
Other expense 
2.47 
2.35 
2.55 
2.74 
3.13 
3.16 
2.94 
3.04 
3.64 
Delivery expense .__ 
2.90 
2.76 
2.43 
2.12 
1.83 
3.90 
3.35 
2.72 
2.52 
2.4 
2.06 
.84 
1.90 
.86 
1.35 
1.08 
.89 
1.23 
.78 
1.05 
2.16 
1.74 
2.01 
1.34 
1.53 
1.19 
1.01 
1.51 
1.4 
Other 
1.0 
Note . — The figures for straight meat markets are weighted averages by sections of the countr y as in Table 
28. Those for combination stores are simple averages, the different sections not being fully represented. 
Those for grocery stores are from Bulletin No. 18, Bureau of Business Research, Harvard University. 
They are not average figures, but the " common figures" for each item, "determined by what is known in 
scientific statistical work as the mode. " The figure for wages is the sum of three "common ' ' figures, buying 
and management, selling, delivery. 
