Quote:
Originally Posted by FredJacobs
What you may not know is that Costco, BJ's, Sam's, Trader Joe's, Whole Foods, etc. have such buying power that they work on a GROSS profit margin of about 25%. After expenses, the NET profit is about 10-15%. Here, in The Villages, the Developer charges these companies rent based on a percentage of their profit. This is not unusual - many places do this. Now you know why WalMart fights against unionization, why there are no WalMarts in New York City and why there were no Walmarts in New Hampshire until the 1990's.
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The stores you are talking about who are in the area are actually not located on property owned by the Developer. Also do believe their gross is under 25% by a considerable margin.
Whole Foods which is often called Empty wallet by people living where they are must have a gross well over 25%.