What is 'retail margin' in SAP IS-R - SAP for Retail?

retail margin - Overview

• Component: IS-R

• Component Name: SAP for Retail

• Description: Retail Percentage margin achieved when a material is sold to the consumer.

retail margin - Details

• 
  Key Concepts: 
  Retail margin is a term used in the SAP for Retail component of the SAP software suite. It is a measure of the difference between the cost of goods sold and the selling price of those goods. It is expressed as a percentage and is used to calculate the profitability of a retail business. 
  
  How to use it: 
  Retail margin can be used to measure the profitability of a retail business. It is calculated by subtracting the cost of goods sold from the selling price of those goods, and then dividing that number by the selling price. The resulting percentage is the retail margin. 
  
  Tips & Tricks: 
  Retail margin can be used to compare different products or services within a retail business. It can also be used to compare different businesses in the same industry. By comparing retail margins, businesses can identify areas where they can improve their profitability. 
  
  Related Information: 
  Retail margin is closely related to gross profit margin, which measures the difference between revenue and cost of goods sold. Gross profit margin is often used as an indicator of a company's financial health, while retail margin is more focused on measuring profitability within a specific product or service.