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Does one supermarket earn its space?
The prompt
An illustrative supermarket in Spain has 1,500 square metres of selling space and sells EUR 6,000 per square metre per year. Its gross margin is 26 percent. Shrink is 1.5 percent of sales. Staff cost 10 percent of sales, rent is EUR 450 thousand a year, and other store costs are EUR 300 thousand. What is the store contribution (profit before head office costs), and what happens if shrink rises to 2.5 percent of sales?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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