Almost three-quarters (73 percent) of operating revenues for retail chains came from those in the 27 census metropolitan areas.
Clothing retailers lead in gross margins
The gross margin for store retailers (the difference between total operating revenues and the cost of goods sold) increased 5.4 percent to more than $97.1 billion in 2004.
This level accounted for 26.2 percent of operating revenues, slightly higher than the proportion of 25.9 percent in 2003.
Increases in retail gross margins were broad-based. Margins were stable, or fell, in only 7 of the 18 trade groups.
Margins as a percentage of operating revenues varied greatly among the retail trade groups. The margin was 47.0 percent for clothing stores, the highest, followed by 46.8 percent for shoe, clothing accessories and jewellery stores.
Clothing stores recorded the largest gain in margins among all retail stores, thanks to falling prices and increased sales. Their margin was 2.5 percentage points higher than it was in 2003. The cost of goods sold for clothing retailers fell 2.4 percent from 2003.
In contrast, despite rising operating revenues, home furnishing stores saw their margins as a percentage of revenues fall 1.9 percentage points to 37.4 percent, as the cost of goods sold rose 15.1 percent.
Inventories rise among most retailers
Overall, store retailers raised their inventory levels 5.5 percent to $52.7 billion.
Despite the increase, the ratio of inventories to operating revenues remained relatively stable. In 2004, inventories represented 7.0 percent of revenues, down slightly from 7.1 percent the year before. (A decline in this ratio is favourable for retailers.)
The increase in retail inventories was broadly based, with only 4 of the 18 groups reporting declines. Computer and software stores reported the largest drop (-9.7 percent), reflecting a continuing effort by these retailers in 2004 to cut costs and maximize revenues.
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