Advanced Search
MyIDEAS: Login

Costs and Margins in the Retail Supply Chain

Contents:

Author Info

  • Patrick D'Arcy

    (Reserve Bank of Australia)

  • David Norman

    (Reserve Bank of Australia)

  • Shalini Shan

    (Reserve Bank of Australia)

Registered author(s):

    Abstract

    Retail goods are an important component of the consumption basket and changes in their prices have had a significant influence on CPI inflation over the past decade, particularly following movements in the exchange rate. To help understand the drivers of inflation for retail goods, this article sets out the major costs and margins involved in supplying retail goods to consumers. Notwithstanding dispersion across different types of goods, on average, around half of the final price of retail items can be attributed to the cost of the goods themselves, with the remaining half covering the gross margins of wholesale and retail firms in the distribution supply chain. The costs incurred by distributors are broadly split between labour and other input costs, with distributors’ profit margins accounting for a little under 10 per cent of the final sale price. These shares have remained relatively stable for at least the past decade.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.rba.gov.au/publications/bulletin/2012/jun/pdf/bu-0612-2.pdf
    Download Restriction: no

    Bibliographic Info

    Article provided by Reserve Bank of Australia in its journal RBA Bulletin.

    Volume (Year): (2012)
    Issue (Month): (June)
    Pages: 13-22

    as in new window
    Handle: RePEc:rba:rbabul:jun2012-02

    Contact details of provider:
    Postal: GPO Box 3947, Sydney NSW 2001
    Phone: 61-2-9551-8111
    Fax: 61-2-9551-8000
    Email:
    Web page: http://www.rba.gov.au/
    More information through EDIRC

    Order Information:
    Web: http://www.rba.gov.au/forms/pub-order-form/

    Related research

    Keywords: Retail; retail goods; distribution chain; price inflation; gross margin; net margin; profit; costs; cost of goods sold;

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:rba:rbabul:jun2012-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paula Drew).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.