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.