Okay so this thing has distribution backend too. I don’t get how these stores make money. At say $20/sq-ft for a 200 sq-ft store, you’re talking about $300 in margin/day just to cover rent. At say a 60% gross margin for overpriced tchotchkes, that’s $500/day revenue to cover rent
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If the average item is say $25, that’s 20 sales/day. At a conversion rate of say 25% that’s 80 walk-ins, or 8/hour if you’re open 10h/day 7 days a week.
And this is bare minimum performance with generous assumptions.
I bet most of these stores are losing money.
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Throw in minimum wage store assistant labor even if you don’t pay yourself, at $15/hr, that’s another $150 in margin. Plus you’ve got inventory costs, write-offs (I wonder if these stores do consignment stocks with returns to the wholesaler/maker)...
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