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Retail & Allocation lesson

Labour cost %

Labour is a store's biggest cost after stock. Showing it as a % of sales lets a small store be compared with a big one.

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About 5–10 minutes · no sign-up needed

The idea

Labour is a store's biggest cost after stock. Showing it as a % of sales lets a small store be compared with a big one:

Formulas

Labour cost ÷ Sales × 100

Key points

Labour cost %Labour cost ÷ Sales × 100.
Typical rangeMany retailers aim for 10% to 20%, depending on the store.
Lower isn't always betterToo few staff can lose sales, like Montreal's busy store with low conversion.

Labour % is how area managers decide where to add or cut hours.

Practice

Try each one in your head first, then open the answer.

1. What is Montreal's labour cost as a % of sales?
$1,800 ÷ $9,000 × 100 = 20%
2. In D4, work out Montreal's labour %: labour cost ÷ sales, as a decimal.
=C4/B4
3. What is Vancouver's labour cost as a % of sales?
$2,400 ÷ $15,000 × 100 = 16%
4. Tap the store spending the smallest share of its sales on labour.
Vancouver, at 16%.

Learn it by doing. This lesson is a short hands-on level on Bampaa: see it work, then build and write it yourself, with instant feedback.

Try this lesson free →
About 5–10 minutes · no sign-up needed