Connect with us

By The Numbers: Partnership Gives Readers Performance Gauge

Published

on

{loadposition davidbrownheader}

[h3]Partnership Gives Readers Performance Gauge[/h3]

[dropcap cap=L]ooking 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[/dropcap]

By The Numbers: Partnership Gives Readers Performance Gauge

[h4][b]Numbers to Note[/b][/h4]

• 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.

Advertisement

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

[h4][b]Numbers to Note[/b][/h4]

• 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.

By The Numbers: Partnership Gives Readers Performance Gauge

Advertisement

 


 

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 June 2006 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].

{loadposition xtra-browncolumn}

Advertisement

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular

David Brown

By The Numbers: Partnership Gives Readers Performance Gauge

Published

on

{loadposition davidbrownheader}

[h3]Partnership Gives Readers Performance Gauge[/h3]

[dropcap cap=L]ooking 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[/dropcap]

By The Numbers: Partnership Gives Readers Performance Gauge

[h4][b]Numbers to Note[/b][/h4]

Advertisement

• 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

[h4][b]Numbers to Note[/b][/h4]

• 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.

Advertisement

By The Numbers: Partnership Gives Readers Performance Gauge

 


 

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 June 2006 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].

Advertisement

{loadposition xtra-browncolumn}

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials

If It’s Time to Consolidate, It’s Time to Call Wilkerson

When Tom Moses decided to close one of the two Moses Jewelers stores in western Pennsylvania, it was time to call in the experts. After reviewing two candidates, Moses, a co-owner of the 72 year-old business, decided to go with Wilkerson. The sale went better than expected. Concerned about running it during the pandemic, Moses says it might have helped the sale. “People wanted to get out, so there was pent-up demand,” he says. “Folks were not traveling so there was disposable income, and we don’t recall a single client commenting to us, feeling uncomfortable. It was busy in here!” And perhaps most importantly, Wilkerson was easy to deal with, he says, and Susan, their personal Wilkerson consultant, was knowledgeable, organized and “really good.” Now, the company can focus on their remaining location — without the hassle of carrying over merchandise that either wouldn’t fit or hadn’t sold. “The decision to hire Wilkerson was a good one,” says Moses.

Promoted Headlines

Most Popular