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%).  

Ready? NOW Is the Time to Edit That Seasonal Merchandise. 4 Keys to Being Artful

As of today, there are only 9 really good selling days left before Christmas. So now, right now, is the time for merchants to edit.  And that, of course, means being smart about markdowns.

Take a dispassionate look at your inventory, especially the seasonal goods. The goal: NO seasonal merchandise left over at the end of the season! 

Whether you call it "editing", or "thinning the herd", the point is the same. Do whatever it takes to move out that seasonal merchandise! 

But of course, you also want the most margin from those goods (some of which sell only at this time of year.) So, that's where the fun begins: you must be the Artful Merchant. Just don't wait!

4 Keys to Artful Seasonal Markdowns

1. As you know, in markdowns, timing IS everything.
   You must act now, when you have the most customer traffic in your stores. And, these shoppers are still focused on buying gifts! (The folks who come in after Christmas - the price-hounds, bottom-fishers, cherry-pickers - are a different group altogether.)


2. Use a scalpel, not a machete.
   Be a merchant! Those  "entire store on sale" tactics
 shriek desperation.


3. Make your markdowns matter.
   Be at least 1/3 to 1/2 off. Even "below cost" if needs be. (The pros know the original cost is irrelevant.) Get whatever cash you can for the merchandise. Otherwise, 3 weeks from now, well after Christmas, those markdowns will cost you 60%, 70% or 80% off. 


4. Start now, and stay on it.
   Every day, find more slow-selling (or non-selling) seasonal goods, and mark them down.

Remember the goal: NO seasonal goods left after the season is over! Let's go! Take markdowns now. And have fun!

Want More Tips for Smart Markdown Management?
Sit back and watch this lively webinar - Markdowns: Timing Is Everything! - from our Recorded Live at TOPICAL TUESDAYS archive. 
(Unlimited free access, online anytime, for ROI Members. Or, get 3-Day Online Access for just $9.95.)

Unique Pricing Tactic: Customer Service IS a Two-Way Street

Chris Morran of The Consumerist, a blog from the Consumer Reports people, featured the menu posted at a cafe in France (appropriately enough, in Nice!)

Three different prices for a cup of coffee, depending on how politely you order. 

• "Coffee" --- $9.65

• "Coffee, please." --- $5.85

• "Good day! Coffee, please." --- $1.95 

Yes, that's right. Your coffee costs much more if you are abrupt or rude! 

Apparently it began as a bit of fun from the frustrated workers, who had grown weary of being treated rudely by the customers, Morran writes. And now, it's part of the actual posted menu. 

"It started as a joke because at lunchtime people would come in very stressed and were sometimes rude to us when they ordered a coffee," explains the cafe's owner. "I know people say that French service can be rude but it's also true that customers can be rude when they're busy."

The owner says he hasn't yet been compelled to charge anyone the higher price and that the sign has resulted in his regular customers now being overly polite when they order. 

"They started calling me 'your highness' when they saw the sign," he say

A timely idea you can use in your stores? 

What a great way to keep retailing fun! And to gently remind customers that customer service IS a two-way street!

Oh. But of course, "Thank you!" for the idea!!

Every Retailer's Dread: "Too Much Inventory!"

"So, retailers, how much inventory should you have on December 31?" Now, thanks to The Retail Owners Institute's online BUYING PLAN Forecaster, any retailer can find out. Anytime, from anywhere. For free!

That's right. Retailers now can develop their own inventory buying plan whenever they need it. From their laptop, their tablet, even their smartphone! In just minutes. All online, in the cloud. And now, FREE unlimited online access!

"Why is it free?" 

That's a fair question! Two main reasons:

1. Unfortunately, there are lots of in-house spreadsheets used by retailers that are well-intended, but not necessarily accurate. So, we want to make it easy to get correct Open-to-Buy calculations.
2. The ROI's goal in everything it does is to bring the power of better inventory control and improved cash flow (and more peace of mind!) to more retailers. This basic BUYING PLAN Forecaster can help.

The ROI's view: "Retailers, be our guest, 24/7 from anywhere!"

---

About The ROI's BUYING PLAN Forecaster. 

• With just 3 easy inputs of numbers you know, you can find out in minutes how much inventory to bring in, and when, to meet your goals for sales, margins and turns. 
• Immediately get monthly buying budgets, targeted Ending Inventory (that's the key number!) amounts for each month, even the projected GMROI for as many plans as you want.

And it's dynamic! Want to see "what would happen if I...?" No problem! Change turns. Or change sales in some of the months. Or adjust margins. See immediately what difference that makes. All on your own!

The Institute's BUYING PLAN Forecaster is one-of-a-kind.

• Online, in the cloud. Nothing to download or install.
• The formulas are all built in.
• Sophisticated, accurate, and fast.
• Easy for retailers to use!

And now, even better, it is available for any retailer, anywhere, to use anytime. For FREE!  

Retailers, don't let your inventory "get out of whack!" 
Why wait? Try it yourself. Just go here on The ROI site.

Now, Lenders Compete(!) to Lend to Retailers

Is there any opportunity for a responsible retailer to get reasonable financing?! 

Our quest to find a positive answer for that question has gone on for years.

That's why we have developed a new service: Banks4Retailers.com.  

Now retailers can do their own comparison shopping - for lenders!

Here is the concept behind this new website:

• Retailer Track Provide the tools for a retailer to put together a responsible, substantive loan proposal.
• Lender Track Find lenders who are able to evaluate a retail business on its merits, not just its industry label. 
• Reviews by Retailers  We are providing a platform for retailers to share their experience with these lenders:
  • Were you treated with respect?
  • Would you refer other retailers to them?

The 5 very different organizations on the Find Lenders page provide access to over 2,500 sources of financing, from traditional banks to "alternative lenders" to investment funds. They offer streamlined matching services between a retailer's financing request and willing lenders. All online, in retail time. 

Is this what they call "disruptive lending"? 

We sure hope so! 

But, like everything else in retailing this is an on-going experiment! 

• We make no guarantees that any retailer can obtain financing. 
• We are not recommending one lender over another, nor does any lender's appearance on the site constitute our endorsement of them.

Our goal is simple: provide a free service to retailers – a no-cost, no obligation service – where lenders compete for your business.

Please go check it out. And let us know what you think. Even better, add your comments on the Review page for Banks4Retailers; share your thoughts with other retailers.