Quick Insights from Key Retail Benchmarks

Powerful Perspective • For and About Retailers

Whether you are a retailer, or you work with retailers, The Retail Owners Institute makes it easy for you to get a quick financial health assessment. 

Go to the Benchmarks page on The ROI site, and choose any one of the 53 retail segments listed. When that page opens, immediately see 5-Year Trend Charts of these 6 key ratios (out of more than 40) that The ROI has identified for retailers to regularly monitor: 

• Pre-Tax Profit
• Gross Margin
• Inventory Turnover
• Debt-to-Worth Ratio
• Current Ratio
• GMROI

These Benchmark Charts, available only from The ROI, offer a snapshot view of the financial viability of each retail sector.

Compare and Contrast Several Segments

Now, look at some more retail segments. (Use the Benchmarks menu bar tabs at the top of each page.) Fascinating, isn't it? 

Quickly compare and contrast different types of retailers; gain insightful perspective. 

Want to Know How Your Stores Compare? 

Of course you do!

See the "Do Your Own Ratios" tab? Click on that tab from any of the Benchmarks Segments pages, and use The ROI's KEY RATIOS Calculator. (Yep, that's free too.)

• Just enter a few numbers from your financial statement. Immediately - and automagically! - see all of your Key Ratios. 
• Use the built-in comps from 53 retail segments to compare your results to the median-performing retailers in your segment.

Available Only at The ROI

The Retail Owners Institute® makes these Benchmarks charts and the KEY RATIOS Calculator available online, anytime, 24/7, for free. Be sure to take advantage of this information!

Latest Key Retail Benchmarks Now Available

How Do Your Stores Compare? 

One of the most popular features of The ROI is the unique Performance Benchmarks Trends we focus on, chart out and display for 54 separate retail segments. These are available to you online, anytime, 24/7, for free. 

The ROI has selected 6 Key Ratios (of more than 40) for retailers to regularly monitor. Then, The ROI presents 5-Year Trend Charts for each of these key ratios.

• Pre-Tax Profit
• Gross Margin
• Inventory Turnover
• Debt-to-Worth Ratio
• Current Ratio
• Return on Assets (ROA)

Go here to find your retail segment. How do your stores compare? Are you trending the same ways as other stores like yours?

"So, how can these benchmark numbers be used by retailers?"

• For perspective. Calculate these ratios for your own business, and then see how you compare to your retail industry segment.
• Use these benchmarks when you are setting your own target ratios for the next year.
• You should know that when you are seeking a bank loan for your business, the bankers will look at these industry benchmarks as they assess your store's performance. 

Have questions about these benchmarks or what they mean?

Be sure to take advantage of the free Benchmarks Resource Center, and its How, Why and Do-It-Now Resources. 

All these specialized resources are available online, anytime, 24/7, for free. And only from The ROI!

Meanwhile, here are some useful reminders about the Benchmarks

• The 54 retail segments featured at The ROI reflect the definitions and designations of the North American Industrial Classification System.

• Retailers may need to examine the benchmark numbers in more than one segment to get perspective on their own store's performance, particularly if their store does not exactly fit the NAICS category.

• The numbers used for the charts on The ROI site are from the middle two quartiles; that is, neither the top quartile (top 25%) nor the bottom quartile (bottom 25%).  

Get Perspective - Now! Latest Benchmarks for 6 Key Ratios, plus GMROI

The Retail Owners Institute is known for its display of key business performance benchmark data for 50+ retail segments, from hardware stores to bookstores, to clothing stores, gift shops, wine stores, music stores, furniture stores, tire dealers, and more. These now have been updated with the latest figures for 2011.

The Institute has identified the 6 Key Ratios that are most important for retailers to monitor. And, it has charted and graphed the 5-year trends of each of these key ratios for each retail segment.  

• Turnover
• Gross Margin %
• Pre-Tax Profit %
• Debt-to-Worth Ratio
• Current Ratio
• Return on Assets %

Go here to see benchmark trends for your retail segment.

Plus, The ROI has calculated GMROI (Gross Margin Return on Inventory Investment, the #1 measure of inventory productivity) for each of the 50+ retail segments. Go here. Find the GMROI for your retail segment. How does your inventory productivity compare?? 

How Can These Benchmark Numbers Be Used?

First, for perspective! Caculate these ratios for your own business, and then see how you compare to your retail industry segment.

Second, use these benchmarks when you are setting your own target ratios for the next year.

And third, you should know that whenever 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.

Go here to see how your store compares!