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Benchmarks for health food retailers

The ATO has just released an industry overview for health food retailers. This includes a list of performance benchmarks developed from income tax and business activity statements lodged for the 2007– 08 income year.

The main expenses for the Health food retail industry are cost of goods, rent and labour. The key benchmark ratio is cost of goods sold to turnover (Cost of goods/ turnover). The overview concluded that a low benchmark of cost of goods/turnover is an annual turnover of within the range of 52% and 64%. A medium benchmark is an annual turnover rate of between 57% and 65%. High benchmarks were annual turnovers of 59% to 65%.

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