What is Occupancy Cost Ratio?
OCR is a vital metric in retail that shows what percentage of your sales goes toward occupancy expenses. This key performance indicator helps retailers and property managers determine if a store location is financially viable. A lower OCR typically indicates better store performance, while a higher ratio might signal the need for operational adjustment
OCR is a vital metric in retail that shows what percentage of your sales goes toward occupancy expenses. This key performance indicator helps retailers and property managers determine if a store location is financially viable. A lower OCR typically indicates better store performance, while a higher ratio might signal the need for operational adjustment
Why Calculate Your OCR?
Understanding your OCR is crucial for:
Understanding your OCR is crucial for:
- Evaluating store performance across multiple locations
- Making informed lease renewal decisions
- Negotiating better lease terms
- Comparing performance against industry standards
- Planning expansion strategies
How Our Calculator Works
Simply input your total occupancy costs (rent, utilities, property taxes, and maintenance) and your gross sales revenue. Our calculator instantly provides your OCR percentage, helping you understand if your location is operating within profitable ranges.
Simply input your total occupancy costs (rent, utilities, property taxes, and maintenance) and your gross sales revenue. Our calculator instantly provides your OCR percentage, helping you understand if your location is operating within profitable ranges.
Industry Insights
Different retail sectors have varying OCR benchmarks:
Use these benchmarks to compare your performance against industry standards and make data-driven decisions for your retail business.
Different retail sectors have varying OCR benchmarks:
- Fashion retail: 8-12%
- Grocery stores: 3-5%
- Restaurant chains: 6-10%
- Specialty retail: 8-15%
Use these benchmarks to compare your performance against industry standards and make data-driven decisions for your retail business.