What is a good profit margin for a retailer?

"the higher the better.

but anywhere between 20 to 40% is good

10 to 20% is ok

under 5% is not good" -previous answer

One must consider:

If you are a store that performs keystone (200% markup), then you are selling the item for twice it's value, and the other half of that goes into labor, utilities, rent, restocking, and advertising. When it's all said and done, according to the Michigan Retailers Association (2010) stated:

"an average 3.5 percent net profit for independent [retail] stores in 1999..."

I have also heard that most stores get around 2%.

What I am seeing today is disgusting. Companies are raising prices, hiring employees at the minimal dollar (many situations where the one job is not enough), and working the minimally paid labor force harder to compensate for a smaller work force. On top of that, a great deal of companies are outsourcing and buying oversees to reduce the overhead.

People wonder what is straining the economy. THIS is your answer.

Just because you can, doesn't mean you should. Please care about other human beings and the life sustainability of humankind. Every time I see a yacht, I think of how many people can barely afford to eat macaroni and cheese dinner so this clown can have this unnecessary expense. Many of these people probably claim to be Christians, amidst their gluttony.

So my answer is this, while you can increase your profit margins over 2%, consider your impact on others' lives with every choice that you make.