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David Brown

By The Numbers: Partnership Gives Readers Performance Gauge

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LOOKING FOR A yardstick? You’re in luck. Instore has teamed up with the The Edge Retail Academy to provide readers with monthly benchmarking figures they can use to gauge their store’s performance against that of their peers. In every issue we will present two sets of numbers: The first will track the basics — gross sales, average sale value and GMROI — on a month-to-month basis. The second will highlight a new category we will break down and analyze. The information will allow you to see those areas where you’re ahead of the curve, and those with potential — in other words, those where you’re lagging and likely need to pick it up.

By The Numbers: Partnership Gives Readers Performance Gauge

Numbers to Note

  • 61 percent of revenue comes from diamond and colored-stone jewelry and loose diamonds.
  • Yet this category is dwarfed when it comes to number of sales, by other lines including gold, silver (the big sales leader by units), watches and repairs.
  • While there will never be a proportional correlation between sales and the number of units sold, given the much greater value of diamond pieces,  the two pie charts tell a clear story in red and brown.

The take away: For most stores, it’s diamonds that bring home the bacon. In theory, a 12 percentage point increase in the number of diamond and colored-stone sales would increase total dollar sales by more than 50 percent.

By The Numbers: Partnership Gives Readers Performance Gauge

Numbers to Note

  • With 159 stock items sold on average, that is about 6 per day in March … if you have two salespeople that’s only three sales each per day!
  • The average store did nearly 21 percent of sales from repairs (i.e. $14,255).
  • The GMROI figure was derived from an average markup of 102 percent on a stockturn of 0.6.

Action Area: Let’s say your store is recording an average retail value of $170 per item and you’re ringing up 6,000 sales/repairs a year. If you could lift that by $30 (up to the annual average of $200) it would mean a further $180,000 in yearly sales. The return on effort chart on the left should give you a clue where to target your energy.

Data gathered directly from the POS systems of more than 300 stores by the Edge Retail Academy.

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By The Numbers: Partnership Gives Readers Performance Gauge

This story is from the June 2006 edition of INSTORE.

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When the Kids Have Their Own Careers, Wilkerson Can Help You to Retire

Alex and Gladys Rysman are the third generation to run Romm Jewelers in Brockton, Mass. And after many decades of service to the industry and their community, it was time to close the store and take advantage of some downtime. With three grown children who each had their own careers outside of the industry, they decided to call Wilkerson. Then, the Rysmans did what every jeweler should do: They called other retailers and asked about their own Wilkerson experience. “They all told us what a great experience it was and that’s what made us go with Wilkerson.” says Gladys Rysman. The results? Alex Rysman says he was impressed. “We exceeded whatever I expected to do by a large margin.”

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