Benchmarking: It’s Essential to Compare Performance by Store Category

As we noted in May, the Retail Owners Institute provides a number of measures of financial peformance for 55 different sectors of retailing.
Here is why this topic is so important: “How can these benchmark numbers be used? First, for perspective.  Calculate  these ratios for your own business, and then see how you compare to your retail  industry segment. Have questions about how to read these  ratios, or what they really mean?  See The ROI’s Retail  Finance Basics section. Want a refresher on  the formulas and how to calculate these ratios with a pencil?  (See The  ROI’s Cheat  Sheet” Quick Reference Guide.) Second, use these benchmarks when you are setting  your own target ratios for the next year.  And  third, you should know that when you are seeking a bank loan for your  business, the bankers will look at industry benchmarks such as  these as they assess your store’s performance.”
Click the image to access the benchmarking data.

 

This entry was posted in Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 8: Putting It All Together and tagged , , , , , , . Bookmark the permalink.

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