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By the Numbers: Sales Rebound From Early Year Slump

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By the Numbers: Sales Rebound From Early Year Slump

Hooray for April! The beginning of the second quarter snapped a three-month decline in sales at independent jewelry stores, with same-store sales surging 22 percent on-year to an average of $103,418. If this keeps up, 2014 sales could come in 12 percent ahead of last year’s total. Overall, it was a strong set of numbers with average sale, units sold, and total profit dollars all showing a nice improvement. The only black spot was margin, which shrank to 44 percent from 48 percent in April 2013. Had margin been maintained at the 2013 level, the jewelers in our survey group would on average have banked an extra $3,840 at the end of the month. Obviously there is some correlation between lower margins and higher sales but for the most part, preserving margins is often about being creative, and strong. Here are a few things you can do to protect your profitability:

  • Ask enough for the item in the first place. Make sure you give yourself some cushion to fend off discount-hungry consumers.
  • Leverage your stars. If an item is a good seller, ask more for it.
  • Don’t forget the cents. I know a store that made an extra $6,000 in net profit during the year simply by adding $0.95 onto the price of everything under $200.
  • Try saying no. Around 50 percent of people will accept it. As for those who push, try offering an alternative slow-selling item or negotiate some terms to offset some of the cost of discounting.

For the full story and more ideas to improve your store’s performance, visit instr.us/7142

By the Numbers: Sales Rebound From Early Year Slump

Data gathered from the POS systems of more than 250 stores by the Edge Retail Academy (edgeretailacademy.com). To join the benchmarking panel, email [email protected]

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Wilkerson Testimonials | Sollberger’s

Going Out of Business Is an Emotional Journey. Wilkerson Is There to Make It Easier.

Jaki Cowan, the owner of Sollberger’s in Ridgeland, MS, decided the time was right to close up shop. The experience, she says, was like going into the great unknown. There were so many questions about the way to handle the store’s going-out-of-business sale. Luckily for Cowan, Wilkerson made the transition easier and managed everything, from marketing to markdowns.

“They think of everything that you don’t have the time to think of,” she says of the Wilkerson team that was assigned to manage the sale. And it was a total success, with financial goals met by Christmas with another sale month left to go.

Wilkerson even had a plan to manage things while Covid-19 restrictions were still in place. This included limiting the number of shoppers, masking and taking temperatures upon entrance. “We did everything we could to make the staff and public feel as safe as possible.”

Does she recommend Wilkerson to other retailers thinking of retiring, liquidating or selling excess merchandise? Absolutely. “If you are considering going out of business, it’s obviously an emotional journey. But truly rest assured that you’re in good hands with Wilkerson.”

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David Brown

By the Numbers: Sales Rebound From Early Year Slump

Published

on

{loadposition davidbrownheader}

By the Numbers: Sales Rebound From Early Year Slump

Hooray for April! The beginning of the second quarter snapped a three-month decline in sales at independent jewelry stores, with same-store sales surging 22 percent on-year to an average of $103,418. If this keeps up, 2014 sales could come in 12 percent ahead of last year’s total. Overall, it was a strong set of numbers with average sale, units sold, and total profit dollars all showing a nice improvement. The only black spot was margin, which shrank to 44 percent from 48 percent in April 2013. Had margin been maintained at the 2013 level, the jewelers in our survey group would on average have banked an extra $3,840 at the end of the month. Obviously there is some correlation between lower margins and higher sales but for the most part, preserving margins is often about being creative, and strong. Here are a few things you can do to protect your profitability:

  • Ask enough for the item in the first place. Make sure you give yourself some cushion to fend off discount-hungry consumers.
  • Leverage your stars. If an item is a good seller, ask more for it.
  • Don’t forget the cents. I know a store that made an extra $6,000 in net profit during the year simply by adding $0.95 onto the price of everything under $200.
  • Try saying no. Around 50 percent of people will accept it. As for those who push, try offering an alternative slow-selling item or negotiate some terms to offset some of the cost of discounting.

For the full story and more ideas to improve your store’s performance, visit instr.us/7142

By the Numbers: Sales Rebound From Early Year Slump

Advertisement

Data gathered from the POS systems of more than 250 stores by the Edge Retail Academy (edgeretailacademy.com). To join the benchmarking panel, email [email protected]

{loadposition xtra-browncolumn}

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | Sollberger’s

Going Out of Business Is an Emotional Journey. Wilkerson Is There to Make It Easier.

Jaki Cowan, the owner of Sollberger’s in Ridgeland, MS, decided the time was right to close up shop. The experience, she says, was like going into the great unknown. There were so many questions about the way to handle the store’s going-out-of-business sale. Luckily for Cowan, Wilkerson made the transition easier and managed everything, from marketing to markdowns.

“They think of everything that you don’t have the time to think of,” she says of the Wilkerson team that was assigned to manage the sale. And it was a total success, with financial goals met by Christmas with another sale month left to go.

Wilkerson even had a plan to manage things while Covid-19 restrictions were still in place. This included limiting the number of shoppers, masking and taking temperatures upon entrance. “We did everything we could to make the staff and public feel as safe as possible.”

Does she recommend Wilkerson to other retailers thinking of retiring, liquidating or selling excess merchandise? Absolutely. “If you are considering going out of business, it’s obviously an emotional journey. But truly rest assured that you’re in good hands with Wilkerson.”

Promoted Headlines

Most Popular