What should be the percentage of overhead cost to sales in a retail business?

The percentage of overhead cost to sales in a retail business typically ranges from 10% to 30%, depending on factors such as the type of retail, location, and operational efficiency. For example, specialty retailers may have higher overhead due to unique product offerings and customer services, while discount retailers often operate with lower overhead. It's essential for businesses to regularly analyze their overhead costs in relation to sales to ensure profitability and competitiveness. Ultimately, the ideal percentage will vary based on individual business circumstances and market conditions.