The Rising Cost of Retail

The nation's retailers spent $699.3 billion on operating expenses in 1997, $153 million, or 28 percent more than they had spent five years earlier, according to a U.S. Commerce Department Census Bureau report. Over the same period, said the report, sales grew 34 percent.

The report provides national data on operating expenses for most sectors of the economy. Examples of expenses include payroll, cost of fringe benefits, rent, utilities, advertising and purchased computer services.

Some highlights from the report:

* The retail operating expenses amounted to 27 percent of the $2.6 trillion in retail sales. Cost of goods sold were $1.8 trillion, 68 percent of retail sales.

* Payroll in the retail industry made up 46 percent of operating expenses in 1997, with an additional 8 percent for fringe benefits, 9 percent for rent and 6 percent for advertising services.

* Home furnishings and equipment stores had the largest proportion of expenses for advertising services:10 percent.

The report will be available on the Internet, at http://www.census.gov.