02/14/2026
One of the simplest indicators of operating leverage in retail & eCommerce is the sales-to-payroll ratio.
Sales-to-payroll = Revenue ÷ Total payroll expense.
In practical terms:
For every $1 spent on payroll, how many dollars of revenue are being generated?
From what I’ve seen with my clients:
• Brick-and-mortar retail typically runs 4x–7x
• eCommerce models often range 6x–12x
8x+ usually signals strong operational discipline or pricing power
I’m curious what other retailers/eCommerce operators are seeing in the current cost environment?
