What is Overhead in Retail? Explained

Overhead in the retail industry encompasses the ongoing operational expenses that a business incurs in its day-to-day operations, not directly tied to the production of goods or services. These indirect costs include items such as rent, utilities, salaries of support staff, insurance, and other general administrative costs. While essential for the overall functioning of the business, these overhead costs are not directly attributable to specific products or services. Efficient management of overhead is crucial for retail businesses to maintain profitability and competitiveness in the market.