Labour, occupancy costs
June 19, 2014
THE Productivity Commission’s
interim report found for most
retailers, labour and occupancy
costs comprised a major share of
the costs of doing business.
The report, the final form of
which is expected in October,
found that labour expenses were
the single largest expense for retail
businesses, while occupancy costs
were often major expenses for
many retailers and changes in these
costs were more significant for
smaller retailers.
It said larger stores did not
consider rent and occupancy costs
as major issues; when looking at
rent as a percentage of costs of
doing business, it found phamacies
came in at under 15% compared
with furniture stores at about 40%
and just above supermarkets and
grocery stores at about 7.5%.
As a percentage of the cost of
doing business for pharmacies,
wages were the highest expense at
about 60% and other expenses at
about 20%, the report found.
Pharmacy Guild of Australia
executive director David Quilty said
in forefront that the Guild intended
to provide further input to the
report.
“In particular, we need to
clarify some of the data in the
interim report which appears to
overstate the level of labour costs
in pharmacy and understate the
increases in occupancy (or tenancy)
costs.”
The report’s key points included
that costs of doing business in
the retail sector were inflated
by unnecessary regulations and
governments’ progress to address
“costly anti-competitive provisions”
had been “slow and patchy”.
To read the report, CLICK HERE.
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