We believe a number of these stores may be underperforming, although very low occupancy costs will help them remain profitable.

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Not only is that real estate a great inflation hedge, it gives the company total control over both the upkeep of stores and occupancy costs.

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Office occupancy costs increased by an average 3.6 percent globally, led by Asia Pacific (7.8 percent) and the Americas thanks primarily to Brazil (5 percent).

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The Europe, Middle East and Africa region reported a muted 0.4 percent increase in occupancy costs, with eurozone concerns clearly affecting market fundamentals across the region.

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Historically, the margins have risen over the years since the sales growth has outpaced the rate at which the fixed costs (such as labor and occupancy costs) have increased.

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