- Definition: Occupancy Cost Ratios
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The ratio of total occupancy costs to total sales. These vary for each class of retailer and generally range from 1.5% for national discounters such as Wal-Mart and Target to 8% or 10% for jewelry stores such as Zales or Jared. Drugstores such as Walgreens try to keep this under 3%, Ace Hardware under 5%, shoe chains under 7%. A rule of thumb is “the higher the retailers mark up, the higher the affordable occupancy costs."
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