Category margin mix

Definition

How sales split across spirits, wine, and beer, which carry different margins and turns.

Why It Matters

Beer moves fast at a thin margin and takes the cooler space; spirits sit longer and pay much better; wine depends entirely on whether anyone in the store knows anything about it. Two stores at the same revenue can differ by several points of gross profit on mix alone. Ask for sales and margin by category for a full year, then walk the shelves, because the space allocation usually tells you what the last owner believed rather than what sells.