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David Brown

By The Numbers: Give Your Store a BMI Test



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[h3]Give Your Sore a BMI Test[/h3]

[dropcap cap=T]oday we’re going to give the average jeweler a quick BMI test. Yes, we’re checking for obesity by looking at the store’s height (inventory) versus its weight (sales excluding repair and custom work). In retail, this is known as the stock-to-sales ratio, and it’s that easy to work out: Just divide sales by inventory.[/dropcap]

In August, the average store in our survey had a stock-to-sales ratio of 1.2. That means $1 of inventory is producing only $1.24 in retail sales on an annual basis. This is not good. A ratio of less than 2 (each $1 of inventory is producing less than $2 of retail sales) means the store is in an at-risk health situation. Aged inventory is like blocked arteries — and could well be causing cash-flow and performance problems.




David Brown is president of the Edge Retail Academy, an organization devoted to the ongoing measurement and growth of jewelry store performance and profitability. You can contact him at [email protected]

[span class=note]This story is from the November 2008 edition of INSTORE[/span]

If you’d like to contribute your own data and receive a personalized KPI report each month, call (877) 910-3343 or e-mail: [email protected].

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Wilkerson Helped This Jeweler to Navigate His Retirement Sale Despite a Pandemic

Hosting a going-out-of-business sale when the coronavirus pandemic hit wasn’t a part of Bob Smith’s game plan for his retirement. Smith, the owner of E.M. Smith Jewelers in Chillicothe, Ohio, says the governor closed the state mid-way through. But Smith chose Wilkerson, and Wilkerson handled it like a champ, says Smith. And when it was time for the state to reopen, the sale continued like nothing had ever happened. “I’d recommend Wilkerson,” he says. “They do business the way we do business.”

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