Produce Department Space Utilization, Gross Margins, and Operating Costs in Selected Retail Stores, Charlotte, N.C

Excerpts from the report Introduction: Producers have often argued that retail margins for specific commodities should be directly related to their costs of handling. But many retailers and wholesalers contend that it is meaningless to talk about the margin for any one product or for a department on the basis of costs of individual commodities, because pricing policies must be based upon net returns from the sale of all the commodities they handle. Research workers generally agree that in relating retail margins to costs of handling consideration must be given to the overall operations of the store. The present report covers the pilot phase of a larger study made in Charlotte, N.C. The data obtained on marketing margins and trade practices for the more important fresh fruits and vegetables corresponds to the information obtained in Denver, Colo., Pittsburgh, Pa., and Cleveland, Ohio. These studies were undertaken as one step in the process of learning how to increase efficiency in marketing of farm products - which would benefit farmers, retailers, and consumers.